Question: Limit on $s raised through passive fundraising
Does anyone know if there is a limit on the amount a PTO can take in from passive fundraising? Thank you everyone.
Asked by Anonymous
Community Advicegjcoram writes:
There are rules about what percentage of its total income a 501(c)(3) can have from "disqualified persons" (the officers) and how much from investment income. Also, there's a limit ($5000 or 2% of your revenue) from one benefactor (person, corporation, etc.) that can be counted in the "public support." Is all your passive fundraising done with one company?
Community Advicemom1972 writes:
Thank you very much for the information. We have passive fund raising from Target, Amazon, Dominicks and a few others. I don't think we will ever hit the $5,000 mark. You do bring up another point though. We are planning on having a "paddle raise" to have parents donate money. We may have some donating more than $5,000. What does that mean for a PTO? We usually raise about $30,000 each year but this year we would earn very little (less than $5000) prior to the paddle raise. We don't want to jeopardize our 501 (c) (3) status. Thank you so much for your guidance on this issue.
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