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Posted by Martin Fortin
Beyond the Bake Sale: ASB Fundraiser Money for a Nonprofit
Q. Our Middle School conducted a fundraiser under ASB. Now they would like to donate $500 of the $12,000 raised to Homeless Backpacks (nonprofit). They would note it in their minutes. Will that be sufficient since they didn’t raise it under Private Purpose Trust (6000) account?
A. When the charitable fundraising law passed in 2000, I ask the school audit manager about this issue. The answer was that a fundraiser had to be either public ASB or private charity and you could not co-mingle those funds. The other issue is that before the fundraiser, you must notify the public that the money is going to a charity. So they cannot use some of the fundraised money to give to a charity.