For professional fundraisers, including fundraising platforms, innovative and savvy structures are critical to avoid penalties and/or sanctions by state regulators and to ensure preferable tax treatment for the fundraiser, partnering charities, and participant donors.
Charitable fundraising platforms generally operate through a for-profit entity and serve as a promoter or facilitators of donations for one or more charitable organizations.
Typically, the fundraising platform will charge a transaction fee for each donation made on its platform or impose a fee to the nonprofit to participate as a recipient charity on the platform.
Increasingly, states are imposing registration and reporting requirements on charitable fundraising platforms to enforce transparency, accountability, and ethical practices of those businesses standing to benefit from the perceived affiliation with charitable organizations.
The attorneys of Tovella Dowling are up to date with the ever-changing legal landscape relating to fundraising practices and regulatory schemes associated with charitable giving vehicles. Representing charities, donors, philanthropists, fundraisers, and social enterprises, Tovella Dowling is equipped to strategize and implement creative legal structures.
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