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Types of Fundraising Requests

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.

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