Can I raise money for a nonprofit without their knowledge?
October 25, 2010 3:54 PM Subscribe
Is it unethical or illegal to raise money for a nonprofit without their knowledge?
I have this big old party every year that involves some sort of ridiculous levels of gluttony. Last year, I felt kind of guilty about that, and decided I should make it a fundraiser for our local food bank, where I regularly volunteer. I simply asked in the evite for everyone to bring $5, put out some brochures in case they were interested in the food bank's work, and provided forms in case anyone wanted to get credit for their gift (make it tax-deductable.) At the end of the event, I counted the money, sealed up the envelope, and sent it off.
It's time for the big party again and I'm considering whether to do the fundraising bit again this year. I guess maybe it could be seen as impolite or something, but I don't really care about that. The giving is totally anonymous (i don't watch the coffee can the money goes in), people know that its being collected when they decided whether to come or not, and in general the response from my friends was very positive last year.
What gives me misgivings is whether its okay to use the name of an organization without their knowledge in order to raise money for them. I don't know why, but even though I'm certainly not swindling anybody (no skimming off the top to pay for the party or anything like that), I just sort of feel like I shouldn't be "representing" this organization without some sort of permission or something.
Am I actually doing anything wrong? I'm not misrepresenting myself or the purpose of the money, and this is not a public event, only people I know are invited.
I have this big old party every year that involves some sort of ridiculous levels of gluttony. Last year, I felt kind of guilty about that, and decided I should make it a fundraiser for our local food bank, where I regularly volunteer. I simply asked in the evite for everyone to bring $5, put out some brochures in case they were interested in the food bank's work, and provided forms in case anyone wanted to get credit for their gift (make it tax-deductable.) At the end of the event, I counted the money, sealed up the envelope, and sent it off.
It's time for the big party again and I'm considering whether to do the fundraising bit again this year. I guess maybe it could be seen as impolite or something, but I don't really care about that. The giving is totally anonymous (i don't watch the coffee can the money goes in), people know that its being collected when they decided whether to come or not, and in general the response from my friends was very positive last year.
What gives me misgivings is whether its okay to use the name of an organization without their knowledge in order to raise money for them. I don't know why, but even though I'm certainly not swindling anybody (no skimming off the top to pay for the party or anything like that), I just sort of feel like I shouldn't be "representing" this organization without some sort of permission or something.
Am I actually doing anything wrong? I'm not misrepresenting myself or the purpose of the money, and this is not a public event, only people I know are invited.
Asking people to donate to an organization at a small private event is not the same thing as publicly misrepresenting the organization, or using their name to suggest they have endorsed the event.
It's fine.
posted by Xoebe at 4:00 PM on October 25, 2010 [1 favorite]
It's fine.
posted by Xoebe at 4:00 PM on October 25, 2010 [1 favorite]
If you advertise it publicly as a fundraiser for the food bank, you need to get their permission. There could be myriad reasons that they would want to know - their own PR and development strategies, tax purposes, etc.
If it were a small party with some friends and you just told them, "hey, I'm going to donate any money I get from the party this year to the food bank," then maybe that's a little different.
I know I know - why would any non-profit say no to this or be upset? Well, there are lots of tax/legal/admin implications when you're getting 'free' money.
posted by Lutoslawski at 4:01 PM on October 25, 2010 [1 favorite]
If it were a small party with some friends and you just told them, "hey, I'm going to donate any money I get from the party this year to the food bank," then maybe that's a little different.
I know I know - why would any non-profit say no to this or be upset? Well, there are lots of tax/legal/admin implications when you're getting 'free' money.
posted by Lutoslawski at 4:01 PM on October 25, 2010 [1 favorite]
Not only is this not illegal, it's awesome. I've done a lot of work with non-profits, and if someone came to me and said, "oh hey, here's a check from a party I had to raise money for your group," you would get a double high-five and a big thank you. Even more, depending on how well they know you (if you regularly volunteer chances are good they know you pretty well), they might even loan you posters if you ask. (But you don't need to ask.)
posted by phunniemee at 4:05 PM on October 25, 2010 [3 favorites]
posted by phunniemee at 4:05 PM on October 25, 2010 [3 favorites]
Do consider that it might not be completely clear to some people that you are doing this independently. Moreso with your volunteering there.
"I guess maybe it could be seen as impolite or something, but I don't really care about that" -- well, okay, but why risk leaving a bad taste in people's mouths about this organisation?
Why not at least run it by your supervisor...? Surely at a minimum you'd get some useful advice.
posted by kmennie at 4:15 PM on October 25, 2010
"I guess maybe it could be seen as impolite or something, but I don't really care about that" -- well, okay, but why risk leaving a bad taste in people's mouths about this organisation?
Why not at least run it by your supervisor...? Surely at a minimum you'd get some useful advice.
posted by kmennie at 4:15 PM on October 25, 2010
This would be a much larger issue if you were telling people that they could count their giving as a charitable donation to the organization in question. They won't get a good receipt, and the organization will have trouble accounting for that money, so yeah, no go.
But simply telling people that all of the money for X is going to charity and naming that charity is probably fine, provided you don't use any of their IP in doing it. Organizations can't really control the fact that people talk about them using their name, but they can control the use of their logo, etc. But again, the only real way you can get in trouble (aside from the tax thing, which is more of a headache than real trouble) is if the organization to whom you are donating the money decides to come after you. And since you're giving them money, well... I don't see that happening.
You could always ask them, you know.
posted by valkyryn at 4:56 PM on October 25, 2010 [1 favorite]
But simply telling people that all of the money for X is going to charity and naming that charity is probably fine, provided you don't use any of their IP in doing it. Organizations can't really control the fact that people talk about them using their name, but they can control the use of their logo, etc. But again, the only real way you can get in trouble (aside from the tax thing, which is more of a headache than real trouble) is if the organization to whom you are donating the money decides to come after you. And since you're giving them money, well... I don't see that happening.
You could always ask them, you know.
posted by valkyryn at 4:56 PM on October 25, 2010 [1 favorite]
Great idea, I am going to do it next time I have a get-together!
posted by mmf at 4:59 PM on October 25, 2010
posted by mmf at 4:59 PM on October 25, 2010
Ditto everyone else: your friends won't get good receipts, the nonprofit won't get your friends' name on their membership and solicitation lists (pro? con?), you kinda get the credit in the eyes of the nonprofit which will probably start to view you as a serious donor, you won't get the help from the nonprofit that you might otherwise get but you won't distract them from their other work either -- but those are the main impacts. Unless you count those as something you care about, there's no downside!
posted by salvia at 5:04 PM on October 25, 2010
posted by salvia at 5:04 PM on October 25, 2010
Response by poster: Just to clarify a few things:
- in the past, I had forms (printed from the organization's website) so that people could fill them out and get a receipt if they wanted.
-We're not talking about enough money here (maybe I raised $300 last year? probably not even that much) for my extra check to be changing anyone's fundraising strategy. This is a massive massive organization (think $50 million budget).
-I did get a receipt from the organization for tax purposes, but I don't itemize deductions, and wouldn't have used it even if I did, as that would certainly be unethical.
-The primary logic behind having it as a fundraiser at all is that the nature of the party makes it kind of awkward for people to bring something, but everyone hates to arrive empty-handed. I was originally thinking of solving the problem with "bring a can of food," but I know food banks can make a lot more out of cash donations than they can random cans of food, and money is a lot easier for carless-me to transport.
posted by juliapangolin at 5:20 PM on October 25, 2010
- in the past, I had forms (printed from the organization's website) so that people could fill them out and get a receipt if they wanted.
-We're not talking about enough money here (maybe I raised $300 last year? probably not even that much) for my extra check to be changing anyone's fundraising strategy. This is a massive massive organization (think $50 million budget).
-I did get a receipt from the organization for tax purposes, but I don't itemize deductions, and wouldn't have used it even if I did, as that would certainly be unethical.
-The primary logic behind having it as a fundraiser at all is that the nature of the party makes it kind of awkward for people to bring something, but everyone hates to arrive empty-handed. I was originally thinking of solving the problem with "bring a can of food," but I know food banks can make a lot more out of cash donations than they can random cans of food, and money is a lot easier for carless-me to transport.
posted by juliapangolin at 5:20 PM on October 25, 2010
I'm guessing that it's the sort of thing where it's fine as long as everyone wins. If you're concerned, it wouldn't hurt to let your food bank know ahead of time.
I don't know whether or not it's legal. I do know that some folks in town started a voluntary gas tax, and that at my local bike collective we didn't know about until a bunch of checks showed up in the mail. We were delighted.
posted by aniola at 5:35 PM on October 25, 2010
I don't know whether or not it's legal. I do know that some folks in town started a voluntary gas tax, and that at my local bike collective we didn't know about until a bunch of checks showed up in the mail. We were delighted.
posted by aniola at 5:35 PM on October 25, 2010
Yeah, my neighbors do this with a pig roast every year - they host, and it's clear that everyone is invited regardless of donation (ie, it's not the price of admission). They choose a different charity to give the party money to each year, and folks then throw money in the kitty. At the end of the night they usually announce how much was raised for the charity of the year (it's often far more than $5/person because people get generous when surrounded by generosity) and everyone claps. As a note of caution, they usually have a slightly sober person keeping an eye on the kitty to make sure there's no funny businees.
Sure, it's not an official fundraiser, but nobody thinks it is and the organizations are all Thrilled to get the donation. People get to be generous and avoid getting on the solicitation lists mentioned above. You're doing a good thing - I'd just say make it clear that folks can donate 5$ or more if they want, and maybe even tell folks how much was raised last year so they can feel like all the gorging was for a good cause, too.
posted by ldthomps at 5:45 PM on October 25, 2010
Sure, it's not an official fundraiser, but nobody thinks it is and the organizations are all Thrilled to get the donation. People get to be generous and avoid getting on the solicitation lists mentioned above. You're doing a good thing - I'd just say make it clear that folks can donate 5$ or more if they want, and maybe even tell folks how much was raised last year so they can feel like all the gorging was for a good cause, too.
posted by ldthomps at 5:45 PM on October 25, 2010
You could choose not to use their name and instead list it as "local foodbank".
posted by swimming naked when the tide goes out at 6:28 PM on October 25, 2010
posted by swimming naked when the tide goes out at 6:28 PM on October 25, 2010
I am not yet a lawyer and the following should not be relied on as legal advice.
It's inconceivable to me that you'd be sued over this, unless there's more going on than you mention here. But I take it you want to play it safe. You can reduce the grounds for a trademark infringement or trademark dilution suit if you simply make it explicit and obvious that you are not affiliated with or authorized by the charity.
posted by foursentences at 7:12 PM on October 25, 2010
It's inconceivable to me that you'd be sued over this, unless there's more going on than you mention here. But I take it you want to play it safe. You can reduce the grounds for a trademark infringement or trademark dilution suit if you simply make it explicit and obvious that you are not affiliated with or authorized by the charity.
posted by foursentences at 7:12 PM on October 25, 2010
I think it sounds fine and I have worked in NPO fundraising. But there are a few things - like if your party has anything that the organization feels would reflect poorly on them they might be upset but if it's just a regular party it should be fine. You could always call an organization and see if they have a party kit of things to send you like specific forms they could email that you could print, envelopes they could send you for credit card gifts you could use for people who want to donate or brochures. I think as long as you aren't say selling tickets to an event or advertising it as a fundraiser for them without their knowledge it should be ok. We appreciated people who would take the time to fundraise on their own for us.
As far as people not getting receipts / the NPO not getting all the names if people don't give their information - it's less work to enter 1 anonymous gift than a whole bunch of individual people who are not particularly interested and will never give again. Since you're providing brochures and the option for an acknowledgment that's enough.
It's worth noting that the above applies to a 501c3 regular non-profit. If it's anything regarding election and campaigns rules are strict and I'd advise you to get paperwork in advance. They pretty much need forms for anything over a fairly low limit maybe $100+.
posted by oneear at 8:29 PM on October 25, 2010
As far as people not getting receipts / the NPO not getting all the names if people don't give their information - it's less work to enter 1 anonymous gift than a whole bunch of individual people who are not particularly interested and will never give again. Since you're providing brochures and the option for an acknowledgment that's enough.
It's worth noting that the above applies to a 501c3 regular non-profit. If it's anything regarding election and campaigns rules are strict and I'd advise you to get paperwork in advance. They pretty much need forms for anything over a fairly low limit maybe $100+.
posted by oneear at 8:29 PM on October 25, 2010
It depends on where you live as well - the easiest thing is to simply call them up and ask what their protocol is.
My non-profit has restrictions over public fundraising in Singapore, so we have to be careful how things are done. We have had lots of fabulous donors here and in the US, UK etc raise money at parties for us. Most of the time, it's been fine - more than fine, a huge help!
But there have been problems. Ethically, it comes down to transparency and accountability. If you're charging say $50 a head, and promising the profits go to the NGO, then list your accounts - don't spend $49 and donate $1, with $20 of that $49 going into your pocket as an 'organising fee'. Or tell people that they will get tax deductible receipts, but keep no records of their names and contacts, so they wind up blaming the NGO when they can't deliver.
We've found out about fundraisers in our names when donors call us up after the event to ask about their donation receipt, and then the person who organised it was flakey, and it means lots of running around to fix things and made us look daft to a potential supporter.
And to the bit about a single anonymous donation being better than names & contacts for each donation, nope. It's always better for us to be able to send a personal thank you to each donor because a lot of them go on to volunteer and donate more, sparked by that initial friend recommendation. But tell your friends you're doing this, so they have the option to be anonymous if they don't want contact from the NGO.
posted by viggorlijah at 2:36 AM on October 26, 2010
My non-profit has restrictions over public fundraising in Singapore, so we have to be careful how things are done. We have had lots of fabulous donors here and in the US, UK etc raise money at parties for us. Most of the time, it's been fine - more than fine, a huge help!
But there have been problems. Ethically, it comes down to transparency and accountability. If you're charging say $50 a head, and promising the profits go to the NGO, then list your accounts - don't spend $49 and donate $1, with $20 of that $49 going into your pocket as an 'organising fee'. Or tell people that they will get tax deductible receipts, but keep no records of their names and contacts, so they wind up blaming the NGO when they can't deliver.
We've found out about fundraisers in our names when donors call us up after the event to ask about their donation receipt, and then the person who organised it was flakey, and it means lots of running around to fix things and made us look daft to a potential supporter.
And to the bit about a single anonymous donation being better than names & contacts for each donation, nope. It's always better for us to be able to send a personal thank you to each donor because a lot of them go on to volunteer and donate more, sparked by that initial friend recommendation. But tell your friends you're doing this, so they have the option to be anonymous if they don't want contact from the NGO.
posted by viggorlijah at 2:36 AM on October 26, 2010
This thread is closed to new comments.
posted by thinkingwoman at 3:56 PM on October 25, 2010