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About Wayne E. Groner
Expertise
I can answer questions regarding annual funds, capital campaigns, endowment programs, asking for the major gift, volunteers, board development, nonprofit management, church fundraising, prospect research, prospect cultivation, and fundraising techniques.

Experience
Fundraising executive since 1977. Presenter at national and regional workshops and conferences of Council for Advancement and Support of Education (CASE), Council for Resource Development (CRD), and Association of Fundraising Professionals (AFP). Workshop presenter to nonprofits and churches. Co-author of the book The Pastor's Guide to Fund-Raising Success. Writer of Sunday school lessons for adults and study resources for youth. Articles and book reviews on nonprofit fundraising-and-management issues published in national magazines and on the Web. Volunteer hospice chaplain. Board member and volunteer for community organizations.
 
   

You are here:  Experts > News/Issues > Nonprofit Charitable Orgs > Fundraising, Management Issues > Fundraising before filing for non-profit status

Fundraising, Management Issues - Fundraising before filing for non-profit status


Expert: Wayne E. Groner - 3/30/2007

Question
Dear Wayne,

Thanks for taking the time to do this. I am an engineer and am trying to get an organization started that collects spare computer parts and old and new computers and donates them to underprivileged youth. I've created the website (http://pcs2kids.org) and read up on starting a non-profit in Illinois (http://www.illinoislegalaid.org/index.cfm?fuseaction=home.dsp_content&contentID=...).

Can I fundraise before I have been incorporated as a non-profit and before I have filed for 501c3 status? I want to hold a bake sale in my company's cafeteria as well as approach other industry contacts for direct funding. These funds will be used for the fees associated with starting PCs2Kids and for publicity, business cards, etc.

A proposal for a bake sale in my cafeteria was denied by my company because they said PCs2Kids is not a 501c3. Thanks so much!

Answer
Thanks for your question, Kapil.

Yes, you can do fundraising before you are incorporated and before you receive your 501c3 letter from the IRS. However, contributors will not be able to deduct their contributions since they are not giving to a recognized nonprofit charitable organization.

Although a tax deduction is not usually the major reason people give, it is an incentive and prospective donors will ask about it. The major reason people give is that they are motivated by the benefits of your project.

As for your company, many companies have guidelines for employees and groups that want to use company facilities for activities that are not company related. As a practical matter, your company should have those guidelines in writing and easily available for employees and groups to read. Written guidelines enable all requestors to be treated fairly and evenly. Written guidelines also help control the security and risk levels of the company.

Hope this is helpful.

Best wishes with your project and please feel free to contact me at any time.

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