Fundraising FAQs

A FAQ Page for field fundraising and questions surrounding CAP Regulation 173-4

• Should my CAP Unit donate or sponsor another charity?
• While Civil Air Patrol units may wish to donate to a qualified nonprofit organization, CAP units should always be good stewards of donated funds.  The perception/optics of raising money and then giving it to another organization can cause an incorrect perception and/or loss of trust from our donors and community.
  
   
  The correct analysis and response to this query must be based on CAP being a 501(c)(3) under the IRS Code. Therefore, in order for this type of donation to be permissible we must consider the following:
   
  • Does the transaction advance CAP’s charitable mission (if the local unit meets at church facilities without a charge then under those circumstances a small donation may be permitted as a token of appreciation).
  • There must be no COI (conflict of interest) for any CAP person involved in the donation transaction.
  • There must be no violation of CAP donor restricted funds previously given to the local CAP unit.
  • There must be no misuse of funds by the receiving organization due to potential bad publicity from CAP supporting a failing entity.
  • No question that donating these funds will imperil CAP’s financial health.
  • It is prudent to consider all of this before being able to answer that it is acceptable for a local unit to donate funds or resources to another charity.
• Can my squadron (unit) participate in AmazonSmile?

• AmazonSmile has announced the program is ending effective February 20, 2023.  If you are looking to grow revenue for your squadron, take a look at encouraging members to search for employer matching companies and volunteer service hour grants on our website. You should have a number of members/parents who are current employees or retirees of qualifying companies in your area.

  Also, CAP supports the opportunity to conduct Facebook fundraising for local squadrons with proper approval.

  Take a look for tips and links for unit fundraising at www.gocivilairpatrol.com/fieldfr.

• How do I request an IRS letter in good standing for my unit?

• CAP Tax Exempt Status

  An important part of soliciting donations or conducting fund raising activities is CAP’s federal tax exempt status. The IRS has ruled that CAP and its subordinate units are exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. This makes donations to CAP eligible for deductions from income by donors as “charitable contributions” to the extent allowed by law. Verification of CAP’s tax exempt status may be found by referring to the IRS’s annual edition of “publication 78” or by requesting a current letter or exemption with your unit's information.

  To request a letter of good standing, click here to email the following information:

  Email should include
  Subject: IRS Letter in Good Standing Request

  Include in the body of the e-mail:

  • Your name and CAP ID

  • Your duty position

  • Full name of CAP Unit

  • Physical address of CAP Unit (street, city, state, zip)

  • Summary of how letter will be used to ask for what amount(s), for what purpose, and from what organization(s)

  • Do you have wing commander approval for this fundraising activity?

• How do I request a .org email address to use in fundraising?

• When to use a gocivilairpatrol.org account?

  According to CAPR 120-1 dated 1 October 2017 "6.9. Advertising or fundraising on any .gov domain is not permitted. For the purposes of this section, "advertising" does not include the recognition of individuals or companies that have demonstrated financial or other support to the performance of CAP missions. When such recognition is extended via links or references to non-CAP sites, a disclaimer, in no less than 8-point type, shall be clearly displayed stating: "LINKS OR REFERENCES TO INDIVIDUALS OR COMPANIES DO NOT CONSTITUTE AN ENDORSEMENTOF ANY INFORMATION, PRODUCT OR SERVICE YOU MAY RECEIVE FROM SUCH SOURCES.”

  Typically, a request may be made if you are an active senior member and responsible for fundraising for your local unit. This request is not intended for cadets or for parents or non-active members.

  Click here request a gocivilairpatrol.org email account. All email requests must include a (CC) Carbon Copy to the Wing Commander before the request will be considered. Under no circumstance will a request be granted without allowing the Wing Commander to disapprove the request.

• How does my squadron receive a discount on Microsoft products, including Microsoft Teams, so we may work more effectively?
• As a nonprofit, CAP is eligible for FREE Office 365 tenants
   
  
   
  • To register for a nonprofit Office 365 license visit TechSoup
  • If you do not already have a TechSoup account you will need to create one which is where the IRS letter will be needed.  You will receive instructions on how to access the cloud-based software.
  • You will need a copy of the IRS letter showing our Tax-exempt status and our 501(c)(3) status.  The Tax-exempt status form can be found here 
  • For the most up-to-date infomation, check https://capipedia.cap.gov/ under Remote Operations for more information.
• A member of our squadron requested a free non-profit account on Canva, do we qualify?

• Canva offers a limited number of nonprofit accounts for organizations. With more than 1,400 units within Civil Air Patrol, there are not enough slots for interested members to qualify under the CAP umbrella.

  CAP's Marketing and Strategic Communications (MAC) department manages access to Canva licenses across CAP, and only five licenses are available for each wing MAC/PA team. 

  To request one of the five assigned licenses for your wing, reach out to your wing PAO. It will be up to the wing PAO to determine to assign and manage the five licenses. In addition, the end-user must have a branded email address from the wing or an NHQ .gov email.

  Please note due to the limited number of licenses available, if you request a nonprofit account through Canva directly it will be denied by the MAC team. 

• Can units request space for fundraising at a Wal-Mart or Sam’s Club location?

• Walmart and Sam’s Club transitioned to a new volunteer grant platform, Deed, about a year and a half ago. While Civil Air Patrol appears verified on Deed’s end, members are still experiencing persistent issues and error messages. Due to these unresolved challenges, CAP is currently pausing all Walmart and Sam’s Club grant applications until further notice. We apologize for the inconvenience and appreciate your patience.

• Our squadron would like to raise funds to provide financial assistance for a member who is in need. We would like to set-up GoFundMe account for then and contribute to it using unit funds and/or individual donations. Is this allowed?

• We do offer the CAP Response Fund under certain circumstances. You can read more here.

  We do see this type of activity occur frequently to support funeral expenses, medical expenses, recovery from unexpected home damage, etc. It's a nice way to support fellow members, however CAP resources or an official tie to CAP is prohibited.

  When people give to support a specific individual, please note the gifts are not tax deductible, nor should it be received or receipted by CAP. We recommend a GoFundMe account to be set up and managed by an individual. CAP is unable to serve as the repository for funds including the processing of funds and/or making payments to individuals. Also, use of CAP's brand or portraying the fundraiser as an official CAP activity is prohibited.

  For more information regarding CAP's crowdfunding guidance, please visit this page.

   

• Wreaths Across America

• Website Donation Module

The website donation module is an integrated feature on CAP SiteViz websites which streamlines and enhances fundraising efforts. It provides a centralized landing page for secure online donations, promoting ways to give for donors, and inspires trust

• Our squadron wants to hold a raffle, what should we consider?
• This type of fundraising can be a bit complicated as each state has different rules and regulations regarding raffles or “charitable gaming”. Always get permission from your Wing Commander who may involve the Wing Legal Officer for review. Here are a few considerations:
  • Consider if a local or state permit is required
  • Some states only allow one raffle a year
  • Avoid online ticket sales
  • Cash prize raffles or 50/50 raffles are not allowed in many states
  • Tax implications on prizes over $600, 300x amount of wager and/or $5,000 - special form and tax withholding. This is the area of greatest risk to a unit, if taxes are not held or collected from the winner then the unit must pay them.
  • Prize Winner Certification may be required
  Consider alignment with CAP core values – what would you allow a group to raffle? Guns, alcohol, tobacco-related products, etc should be avoided. For more information, click here.
• Can units fundraise for a percentage of the proceeds?

• CAP Regulation 173-4 states "The use of fund raising promoters who charge a percentage of the proceeds is prohibited." This regulation stems from the Association of Fundraising Professionals (AFP) Code of Ethics to “not pay finder’s fees, commissions or percentage based compensation based on contributions.” 

  This regulation is NOT intended to prohibit local units from participating in local/area “Day of Giving” activities or restaurant promotions where donations might be matched and % is taken for credit card fees.

  However, if someone offers to write grants for a percentage or send out a fundraising appeal and keep a percentage of the proceeds, Civil Air Patrol units are prohibited from entering into contracts with these types of fund raising programs. 

  Any type of fund raising activities will require the approval of NHQ/GC and NHQ/COD. Requests should be submitted through the respective wing or region commander, whichever applies.

• Our squadron/wing is interested in applying for a federal grant, is this allowed?

• At this time, all CAP units are prohibited from applying for federal grants. Those would be agencies such as Homeland Security, FEMA, FAA, Department of Education, etc. 

  Should you have questions, please contact the CAP NHQ Development Team.

• Our squadron wants to participate in a parking lot/parking car fundraiser for a donation? What are the steps for approval?
• Based on potential risk, a new process was agreed upon by the CSAG in 2020.
   
  
   
  When you submit your fundraising approval request to the Wing Commander, your Commander will need to conduct a risk assessment in coordination with the Wing Legal Officer. They will share their findings with the Region Commander, and then submit the request and risk assessment to NHQ General Counsel for final approval. This change will be reflected in the next update of CAP Regulation 173-4.
• May squadrons ask for donations/grants from a casino?
• Many casinos have community outreach programs which serve as good publicity for them and brings about generous benefits for the local non-profits, particularly youth development programs. As long as there is not an agreement requiring use of the CAP brand, cadets or members working on-site or other types of agreements obligating CAP in order to receive funds, the donation may be acceptable. As always, seek Wing Commander approval with consent from their legal officer before you make an application.