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Nonprofit Law/Kickstarter for 501c3 Fundraising

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Question
We are a not for profit historic preservation, restoration site and wish to generate exposure and fund raising benefits from utilizing the social media application kickstarter.  
Are there any legal reasons that would preclude setting up a kickstarter fund raising page? Thank you.

Answer
I see on Kickstarter's website "We’re a for-profit company based in New York City’s Lower East Side. We spend our time making Kickstarter a little bit better every day, answering questions from backers and creators, and finding new projects to share. If a project is successfully funded, we apply a 5% fee to the funds collected."
http://www.kickstarter.com/hello?ref=homepage

Kickstarter appears to be what the IRS and the State of New Jersey refers to as "professional fund raisers" and, therefore, you would need to answer "yes" on certain State and Federal income tax forms and State Charitable Organization Annual reports if you are funded through them or if they even hold funds with your permission after soliciting funds for you. States highly regulate such activities and the charities that work with such professional fund raisers. See, for New Jersey http://pages.citebite.com/h1s6n9c4w6teq

You may, however, certainly use professional fund raisers.

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

Expertise

I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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