[Noisebridge-discuss] Fundraiser Proposal

[Glen Jarvis]

Josh,

    This is very good input. I will ask this item to be put on the meeting
business for Tuesday (err.. actually, I should edit the wiki myself..
damn)...  to see if this is worth pursuing for tax advise, etc.

     I don't have a lot of time, I just see a need at Noisebridge and see a
solution. Before putting any time into this, I'd like to see who would block
first -- to save myself the bother :)

Cheers,


Glen

On Fri, Aug 27, 2010 at 12:16 PM, Josh Berkus <josh at agliodbs.com> wrote:

>
> > What sticky non-profit issues are there for us? Is this a horrible idea?
> > Can we make it a mini-maker-faire type of event where people also can
> > set up tables showing off kits they made, sell arduinos, etc.?
>
> Who's our CPA?  We should ask them if charity auctions are considered
> "unrelated business income"; I don't remember what the criteria are.
>
> Selling arduino kits, t-shirts etc, is also possibly "unrelated business
> income" (UBI).  The standards for this are confusing and conditional;
> for example an arduino kit might be considered related to NB's mission
> if being sold for a class (educational), but not if being sold separately.
>
> The issue with UBI for a 501c3 is (a) you need to file a form for it
> with your annual 990 (b) you may need to pay sales tax (again, ask the
> CPA), and (c) if you have too much UBI then the IRS classifies you "not
> a nonprofit" and you lose your 501c3.  The standard for "too much" isn't
> completely clear, but if it's more than 10% of NB's annnual revenue,
> that's definitely dangerous.
>
> We definitely need to provide auction winners with a form which says
> "you got X at charity auction, for a donation of $$$ for NB, a 501c3
> non-profit organization.  Value was received in return for your
> donation; consult your tax preparer to determine the charitable portion
> of your gift."  A huge no-no is supplying donors with any kind of
> valuation of the items purchased; that should be up to them.
>
> I am not a tax preparer, but I did spend 3 years being a fundraiser at
> the Opera, including running 3 silent auctions.  NB should definitely
> consult its CPA before going ahead with such an auction.
>
> Non-tax advice: I'd suggest having a silent auction, maybe with online
> auctioning as well, for 80% of the items.  The remaining 20% most
> valuable/interesting/exclusive should be auctioned off auctioneer-style,
> preferably after a lot of beer (we once got $1500 for a signed
> sweatshirt this way) Try to pick items you know will have broad appeal,
> and maybe ones which are unique.  This is also dependant on having a
> good auctioneer, one who knows how to work a crowd and how to play off
> bidders against each other, so if you don't have such a person, you
> might stick to an exclusively silent auction.
>
> Do not underestimate the amount of time it will take you to tally all of
> the auctions.  Also, make sure you get full contact information for
> anyone making a bid at the start of the auction.
>
> --
>                                   -- Josh Berkus
>                                      PostgreSQL Experts Inc.
>                                      http://www.pgexperts.com
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