Types of Fundraising Requests
-
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
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.
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.