Fundraising is a complex and increasingly professional endeavor. As a club activity, it draws on strategies and techniques from sales and marketing, public relations and communications, and investment practices.
Before becoming personally involved in fundraising activities, board members, coaches and volunteers need to understand fundraising as a business activity shared by organizations of all types and sizes. Fundraising has evolved into a sophisticated process with its own set of guiding principles, operating standards, and generally accepted practices.
There two general areas of responsibility in terms of resource development: (1) understanding and overseeing the fundraising process, and (2) giving and asking for support for the organization.
Fundraising "Rules and Regulations"
Club leaders and boards of directors are responsible for knowing and following certain rules and regulations of fundraising as they apply to nonprofit organizations. If your organization is a 501c3 nonprofit, your members can encourage donors to give with the understanding that contributions are tax deductible.
- Make sure that you are a legally incorporated 501c3 organization. Don't assume that all of the paperwork has been properly filed. You would not be the first organization to find out that it was never actually completed and submitted! If you are not a 501c3 organization, you cannot offer the donors the ability to deduct their contribution.
- All fundraising money must go into the general team account. Individuals who raise money are NOT allowed, by IRS rules, to keep any portion of the money raised for personal benefit. In other words, the money raised cannot go into personal accounts to defer team fees, pay for meet entries or pay for travel. Saying that you are raising money for your team and then applying the money for personal benefit is considered fraudulent!