Fundraisers - Silent Auction

[boomerscout]

"What of value are they getting in return for their donation?"

 

ofttimes, they get a tax deduction for making a charitable contribution

get their picture in the paper turning over the item to troop committee (advertising)

a sign with their business name & logo is displayed at the item (advertising)

get their business name mentioned again when picture of winning bidder is published in paper

for dollar biggies, they get a sponsor plaque to display at/near their register or reception room

all donors are thanked in an after action "thank you" printed in the local paper (more advertising)

largest donors get to sit at the donors table at our annual Christmas banquet

 

as long as you ask in the name of your unit, this was approved by the Scout Executive long ago.

[Twocubdad]

Um, no.

 

Here's what the guidelines say.

 

"7. Will the fund-raising project avoid soliciting money or gifts?

 

"The BSA Rules and Regulations state, Youth members shall not be ermitted to serve as solicitors of money for their chartered organizations, for the local council, or in support of other organizations. Adult and youth members shall not be permitted to serve as solicitors of money in support of personal or unit participation in local, national, or international events. For example: Boy Scouts/Cub Scouts and leaders should not identify themselves as Boy Scouts/Cub Scouts or as a troop/pack participate in The Salvation Armys Christmas Bell Ringing program. This would be raising money for another organization. At no time are units permitted to solicit contributions for unit programs."

 

That last sentence, by the way, is in bold.

 

So put as much lipstick on this pig as you like, a unit going door to door, business to business asking for merchandise for the silent auction is a violation of the guidelines. Sell lightbulbs, Christmas trees or popcorn all you like, but you can't ask for direct contributions. Whether or not it is cash or merchandise doesn't matter.

 

I dealt with this professionally for a long time. I ran marketing and communications for a company for several years and was a full time consultant for several more. What you're describing is not advertising. We made decisions to support various community groups based on very specific target markets and analyzed the value of their programs the same way we analyzed any advertising buys in newspapers, magazines and billboards. I would pay big bucks to get my CEO in a golf tournament or charity dinner if I knew he would be hob-nobbing with commercial bankers and other money launderes -- um, I mean lenders. We bought a lot of ads in symphony, ballet and opera programs.

 

On the other hand, I wouldn't pay squat to get us in front of your Boy Scout troop. Sorry, your weren't my demograhic.

 

That was another budget and another set of rules. Basically, if someone in the company had a reasonable business relationship with you, and you asked for a contribution to a group you supported, we would make it JUST TO KEEP YOUR GOODWILL. We even had set contribution levels based on the employees' pay grade -- everyone got one $25 contribution a year, VPs got a couple $50 contributions, Exec. VPs had a real budget and the CEO got to do whatever he wanted to.

 

But the key there was we simply wanted to stay in your good graces. We didn't care a wit about what the organization was, it was all about the business relationship we had with the individual. And that's what the fundraising guidelines are seeking to prevent -- units going out and trading on the goodwill of the BSA to solicit contributions.

 

Frankly, they want to save that for the council FOS campaign and don't want units working their side of the street.

 

(This message has been edited by Twocubdad)

[evmori]

Thanks Twocubdad.

[Scoutfish]

"So put as much lipstick on this pig as you like,..."

 

Correct info and good points aside...YOU SCARE ME!

[boomerscout]

"At no time are units permitted to solicit contributions for unit programs."

Yes, Twocub, I totally screwed this up, and apologize to all for misleading anyone. What I should have said:

(1)Does that mean people can make tax deductible gifts to our troop?

A donor may receive a tax deduction for a gift to your troop if your sponsor:

1) Is considered tax-exempt under IRS Sec. 501©(3);

2) Is willing to accept the gift on behalf of the troop; or

3) Names your troop as a "subordinate organization" under their group exemption

Anyone may contribute anything at any time to a Scout pack or troop, if they choose. But they will not receive a charitable income tax deduction for their gift unless these

conditions are met. This is true for individuals, corporations, and foundations.

 

(2)Some local companies have employee incentive awards and corporate contribution awards that they will give to the charity of our choice. Can these gifts go to our

troop?

As with other gifts, employee incentive awards and corporate contribution programs may contribute to your troop IF the conditions in the previous question are met.

However, even if those conditions are met, there's one other issue: your sponsor may not be a qualified donee under your company's giving restrictions. For example, many

troops are sponsored by churches, and some companies will not make gifts to religious organizations.

 

(3)There are restrictions on soliciting gifts for our troop?

Article XI of the BSA Charter and Bylaws makes it very clear that only the local council is permitted to solicit individuals, corporations, or foundations for gifts in support of

Scouting. Units, unit leaders, or youth members are NOT permitted to solicit gifts in the name of Scouting, unless they have asked and received permission from the local

council to do so.

Either our CO or our Friends of Troop ### makes the actual solicitation. Since we usually send a check to Council for their cut, and since we generally don't do well with the overpriced popcorn, Council rarely gives us any static.

[boomerscout]

"And that's what the fundraising guidelines are seeking to prevent -- units going out and trading on the goodwill of the BSA to solicit contributions."

 

I agree that in no way would this be construed as corporate level advertising for a manufacturer. However, in a smaller community, people will only shop in your store if they know you support the community's children. The steps I've listed does that. Our sponsors generally have kids in the troop, or had. We don't cold call complete strangers for this.

I guess I won't tell you about our CO's bingo games. That's where Friends of Troop ### holds many of their silent auctions.

 

[Twocubdad]

I'm not trying to beat up on you, boomer, but read what you wrote. At best you're plying on the good will of troop parents or you're guilting business owners in supporting the program. Either way, it's a direct solicitation of a donation, not a fair exchange of goods and services, which is the BSA criteria.

 

Sure, every sports team in town does the same thing. My wife has boxes of cheap plaques with ball team in jerseys with her name. But she usually sponsors team either because our boys played, someone she know made the ask or it was just plain chairity. I doubt she's ever gotten any business off team sponsorships.

 

But the local rec league isn't the BSA and BSA has policies which prohibit that sort of solicitation.

(This message has been edited by Twocubdad)

[boomerscout]

TwoCub:

"it's a direct solicitation of a donation, not a fair exchange of goods and services"

 

what would need to happen to make it a fair exchange? We sometimes buy the item at their cost plus freight. Anything in addition? Instead of?

We do have council permission -- if only a nod. We don't deal with the Fortune 2500

 

[Twocubdad]

Pay a fair price for the merchandise.

 

Is cost fair? Wholesale? Retail? $1? I can't tell you what "fair" means. But what's fair isn't the point. It's the solicitation that violates the guideline.

 

That your unit wants to ask local businesses for contribution neither picks my pocket nor breaks my leg. Heck, I don't particularly agree with the policy anyway. But as we say at camp school, this is the national policy, whether or not you want to follow it is up to you and your Scout Executive.

 

[evmori]

We do have council permission -- if only a nod.

 

Does a wink go along with that?

 

Hmmmm...... did council sign the Unit Money Earning Application or did you get a verbal OK?

[boomerscout]

"We do have council permission -- if only a nod.

Does a wink go along with that?

Hmmmm...... did council sign the Unit Money Earning Application or did you get a verbal OK?"

 

It's verbal since we have the Friends of Troop ### do the actual round up of the goods. From our point of view the council can solicit donations, the Eagle Scout candidate can solicit donations, but the poor troop stuck in between the two gets shafted.

If council really wanted to raise money they could put on a nationally rated golf tournament, seek the donation of cars & boats, become a beneficiary in people's wills

[Twocubdad]

Gotta be fair with you, boomer, that your chartered organizations is doing the soliciting makes a difference. If our CO, a church, goes out and makes direct solicitations with the proceeds benefitting the troop, BSA guidelines don't apply to the CO, as long as they don't mention the Scouts. For that matter, the CO can sell fireworks or hold a raffle if they like.

 

That said, the First Self Righteous Church can solicit donations without mentioning the Boy Scouts, even if that's where the proceeds wind up. It's going to be tough for the Friends of Pack 1 do maintain that same level of separation.

[evmori]

Well verbal is as good as nothing.

 

Did you actually complete and turn in the Unit Money Earning form ad you are required to do?

 

Gotta follow the rules! The charter could be revoked if National catches wind of this!(This message has been edited by evmori)

[Twocubdad]

Come on, now. No one is going to loose their charter over a unit money- raising application. I rank the whole thing a little less serious than not filing a tour permit.

 

And if it is the chartered organization doing the fundraiser not the unit, the CO isn't bound to file an application.

[boomerscout]

"Gotta follow the rules! The charter could be revoked if National catches wind of this!"

 

The best leadership is by example. National needs to walk the walk instead of just talking the talk. What's sauce for the goose is sauce for the gander

 

Unjust rules are made to be broken

--Martin Luther King

 

I guess we could become extended Canadian Scouts, maybe Australian. They don't sell popcorn, do they?