Student Club Fundraising GIFT PROCESSING

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1 Student Club Fundraising GIFT PROCESSING

2 Disclaimer We are not qualified tax professionals and are not giving tax advice. Always refer a potential donor to consult with their tax professional

3 Basic Information About CPP Fundraising can take 2 forms: Charitable and Non-Charitable (more on next slides) All checks received by OSLCC will be picked up and deposited either to ASI or Foundation by the Gift Processing Office All payments received MUST be deposited by the next business day per the CSU Cash Handling procedure

4 1. Non-Charitable Fundraising (deposit into ASI agency account) Donor WILL NOT receive a charitable tax receipt Activities where there is an exchange of goods or services (ex: car wash, bake sale) are not charitable in nature These fundraising activity proceeds would be deposited to the ASI agency account for your student club Donors can give monetary contributions to your ASI agency account (program support)

5 1. Non-Charitable Fundraising (Cont d) Program support EIN use: The University s EIN All checks must be made out to the Student Club or ASI not to Cal Poly Pomona Foundation Deposits to the agency account will be done by the office of gift processing Student club leadership will receive an from ASI confirming the deposit

6 2. Charitable Fundraising (deposit into Cal Poly Pomona Foundation, Inc. Account) A charitable donation is defined as a gift to the University where the University has a related use and the donor has the intent to make a donation There cannot be an exchange of goods or services in order for a donation to be considered charitable (generally see events) Donors WILL receive a charitable tax receipt

7 2. Charitable Fundraising (cont d) (deposit into Cal Poly Pomona Foundation, Inc. Account) Charitable Donation EIN Use: Cal Poly Pomona Foundation, Inc Must establish a student club account with the foundation Contact college support staff for new account processing w/ CPP foundation All donations deposited to the foundation are assessed a 5% processing fee

8 Greek Fraternities & Sororities Gifts to Greek Fraternities & Sororities are never considered charitable per IRS (Internal Revenue Manual, Part 7, Chapter 25, Section 3 Religious, Charitable, Educational, Etc., Orgs) All gifts for these entities must be deposited to the ASI Agency account A charitable tax receipt will not be issued ( ) Fraternities and Student Clubs College fraternities do not qualify for exemption under IRC 501(c)(3) because they are not operated for exclusively educational purposes. Although many have certain educational aspects, their activities serve substantial social purposes. Rev. Rul Similarly, Rev. Rul , (Part 1) C.B. 182, holds that fraternity housing corporations are not exempt as educational organizations.

9 Event Sponsorships If you are offering a potential charitable donation in exchange for payment: All Event sponsorship communication require review by the Gift Processing office if you plan to offer a charitable deduction Cassie Banagas (909) Solicitations must clearly state the value of the donation and cannot offer the following: Advertising Booths The value of any goods or services (including tickets to eventsto determine the charitable deduction value) is deducted from the sponsorship price Charitable tax receipts can be offered to the donor as long as the materials are reviewed PRIOR to sending them out to ensure IRS Compliance

10 Coming Down the Pike! We are working on centralizing the contact for all student clubs for foundation items through student affairs Single contact for all foundation related items Crowdfunding options for student clubs coming by beginning of next year Similar to Go Fund Me, etc.

11 Visit the University Advancement Site on Student Club Fundraising All information provided today is available online at

12 Gift Processing Contact Cassie Banagas (909)

13 Questions??

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