Sponsorship On Fund Raising

[Eg19841]

I am trying to find out on here is if our Cub Pack is able to coordinate and create a 5k to raise funds for the pack as well as to give away to charity.  Cost wise we would need Sponsorship from the local business to Fund the campaign.  Is this allowed or do we have to put the money to create it? 

[qwazse]

I don't think with this type of solicitation, any of the money can go to the pack. The pack, may, however, make money by having the boys provide a service (e.g., cold drinks, custom t-shirts) during the event.

 

There is paperwork involved (http://www.scouting.org/filestore/pdf/34427.pdf), and you should talk to someone at your council service to see what the chances are of your plan being approved.

[Stosh]

Non-profit religious organizations do this all the time.  As long as the donor knows for what purpose the money/service is going towards it's no big deal.  A scout troop that sponsors a blood drive is the same thing.  This sort of thing goes on all the time.

[CalicoPenn]

Yes, No, Unlikely and Maybe. 

 

On the Yes side, if you have the people and the energy to take on such an ambitious undertaking, then yes, you could start a 5K run to fund the pack.

 

On the Maybe side, the codicil is you can start a 5K to fund your Pack IF the Council approves of this as a fundraiser.  My suggestion before going any farther would be to contact the DE and/or Scout office to see if the Council would even consider such an application.

 

On the Unlikely side, it is unlikely that Council would allow you to solicit for sponsorships since you would be, on paper at least, competing with the Council who might be approaching the same companies for FOS donations.

 

On the No side, units are not allowed to raise funds for other charities so it would have to be for your own Pack.

 

Now, on the let's figure out a way side, there is one charity other than the Pack that the Pack can raise funds for - the BSA (aka National and/or Council).  So, if you really have the energy to start one up (and it isn't as simple as saying "Let's run a race"), then consider approaching Council with the idea of doing a 50/50 split with the Council as your charity and a list of potential sponsors that they can go through to make sure you're not going after someone they already have a relationship with - you might be bringing in companies (like perhaps a local running store) that they've never approached or never had success with in the past.

[CalicoPenn]

One more thing - Welcome to the Forum

[Gone]

I am trying to find out on here is if our Cub Pack is able to coordinate and create a 5k to raise funds for the pack as well as to give away to charity.  Cost wise we would need Sponsorship from the local business to Fund the campaign.  Is this allowed or do we have to put the money to create it? 

 

You need to talk to your CO. You are part of them and covered under their articles of incorporation. If that happens to be a 501 ©(3) then you need to work with them as to what is/is not allowed. 

 

Try this as a starter or this.

 

This is the best overview I have seen by a council but it may NOT be what your council adheres to.

Edited June 10, 2015 by Bad Wolf

[Eg19841]

I will be getting with the Council to see there take. On another note So lets just say i created a run with our local running community which is a decent following and with no BSA association and put the funds up myself.  Can i donate that money to the pack or will it have to go to the Council?  If this is possible i dont think i would go thru with it because i want participation from our cubs.

[CalicoPenn]

You and/or your club and any individual in your club can make donations to any organization you would like, including your cub pack.  If the organization was creating a run to raise funds for the pack, it might have to donate through the chartering organization if the Pack isn't registered as a 501c3 itself

[Gone]

I will be getting with the Council to see there take. On another note So lets just say i created a run with our local running community which is a decent following and with no BSA association and put the funds up myself.  Can i donate that money to the pack or will it have to go to the Council?  If this is possible i dont think i would go thru with it because i want participation from our cubs.

 

Slippery slope. Individual donations to a unit should go through the CO.

 

See BSA guidance here. If your CO is a non-profit they likely have a tax attorney they consult. Talk to them.

 

Check out this video too. It may help.

Edited June 10, 2015 by Bad Wolf

[Stosh]

On the No side, units are not allowed to raise funds for other charities so it would have to be for your own Pack.

 

Doesn't every Eagle project that requires funds to be raised fall under this?

 

Now, on the let's figure out a way side, there is one charity other than the Pack that the Pack can raise funds for - the BSA (aka National and/or Council).  So, if you really have the energy to start one up (and it isn't as simple as saying "Let's run a race"), then consider approaching Council with the idea of doing a 50/50 split with the Council as your charity and a list of potential sponsors that they can go through to make sure you're not going after someone they already have a relationship with - you might be bringing in companies (like perhaps a local running store) that they've never approached or never had success with in the past.

 

Stop and think about it a moment.  Every dollar solicited for the Pack, Troop or Crew is really solicited for the CO.  It's their organization, their money.  If the church's youth group wants to raise money for the starving Etheopians, they can, so can the CO's scout unit.

 

There are so many holes in National's fundraising policy it looks like Swiss cheese.

 

My former scouts sold corn on the cob for the CO (American Legion) .  They didn't get anything for it, but all the money raised went to the CO and not the Troop.  They also sold water and soda on the parade route for the CO as well.

 

Council never mentioned any problems with the set up.

Edited June 11, 2015 by Stosh

[SSScout]

As I understand BSA policy:

1)  A Scout Unit may NOT solicit donations.  The unit must earn its budget (selling, services, etc.). Voluntary donations can be accepted, but not asked for.

2)  If a Scout Unit is doing a service project for a non-profit entity (can't clean up a gas station parking lot for free), and fund raising is necessary (gotta buy materials to build the picnic tables for the church), those funds (however raised. ?donations?) must ALL go to the benefiting entity.  And any leftover materials. 

3)  Nothing the Unit does financially can personally benefit any individual Scout, except as it applies to his Scouting career.  Camp scholarship okay,  new xbox, no no.   New back pack, maybe, new Air Jordans  not a chance.... see previous discussions about "Scout Accounts".

4)  Yes, the Unit is "owned " by the CO, but the understanding CO will let the Unit do it's thing with the Unit's money. And the understanding Unit will not knowingly embarrass or place the CO in any financial problems.   

5 Therefore, if the Scout Unit wants to do a project/have a fundraiser/ etc. to benefit a separate non-profit entity (ie, not the Scout unit), they should fill out a "Fund Raising Permission " form (contact your DE)  and figure out how all the above applies.  Share the money raised between the Unit and another Non-profit? ?  Well, we do that with popcorn, yes?  so it is not out of the realm of believable.

Outside sponsorship?  mmmmmm.... Cub Pack helping at a charity race?  Better chance. 

Relay for Life gets lots of Scout support around here,  Scout Troop organizes team, and ALL the money goes to the RfL folks.  That's appropriate.  Unit helps with crowd control at the school track, good fit.  Sells bottles of cold beverage to participants?  Who gets that money?  Half and half?  seems okay to me.  

[Twocubdad]

#1. In theory, the sponsor of a race is receiving something of value for its sponsorship fee -- visibility, good will and an opportunity for promotion.

 

#2. I think you're confusing the rules for an Eagle Project. Say your gas station owner is an elderly person who has done much for the community over the years. There is nothing which says a unit can't do their good turn for the day for anyone they wish.(That would not be the case for an Eagle project, however.) Similarly, if funds are raised for such a project, I know of no rule stating any extra funds have to go to the gas station. In that case, however, I do think trustworthiness dictates you do son.

[Gone]

How many tax attorneys do we have here that have in-depth experience with non-profit tax and fund-raising?

 

If none, rather than cloud the issue we need to direct people to their CO and CORs. I have seen unit get well-meaning advice that, well, was just wrong. Our unit is lucky enough to have a tax attorney who also worked for the IRS and was an employee of BSA for ten years. When we have questions we go to him. We're lucky that way.

 

If you don't have someone like that I'd recommend running ANYTHING tax or fund-raising related past your CO's attorney. You can muck up your unit and your CO pretty fast not doing so.

[Stosh]

Adding to what @ says is the BSA policies which have nothing to do with IRS or tax laws on non-profit organizations.  There's nothing I know if in the IRS Code that states popcorn sales can't start before such and such a date and must end on a date 30 days later.  That's BSA.  They don't want people out soliciting big bucks for a unit that would jeopardize the efforts of councils going out and getting money for themselves.

[SSScout]

#1. In theory, the sponsor of a race is receiving something of value for its sponsorship fee -- visibility, good will and an opportunity for promotion.

 

Yesbut..... See # 5... Relay for Life is the charity, not the Unit. If the Unit is organizing the activity, is it expecting to garner a share of the income?,  then it becomes the Unit's fundraising, not the other charity.  Grey area?  Judgement case?   Just MHO....

 

#2. I think you're confusing the rules for an Eagle Project. Say your gas station owner is an elderly person who has done much for the community over the years. There is nothing which says a unit can't do their good turn for the day for anyone they wish.(That would not be the case for an Eagle project, however.) Similarly, if funds are raised for such a project, I know of no rule stating any extra funds have to go to the gas station. In that case, however, I do think trustworthiness dictates you do son.

 

Eagle project?  Same standard, I think. I agree you can do a "good turn"  for a person, even a respected, for-profit business (does the SM own the garage?  Might be frowned on none the less), but not raise funds for them or even work for them, "offishully".  Council said "NO" for that very reason  when a Troop wanted to do grocery bagging at a local store for "tips" . This was viewed as taking work (and pay?) away from the usual workers and the store..  Not the same as selling popcorn or flowers or mulch outside a local business.   We have a local Troop that works for the County Fair, directing traffic, collecting trash, running errands generally. This is their major fundraiser each year.  The Scouts are out there all week, very visible, and definitely EARN their pay.