Launching a website and beginning an online fundraising campaign is an inexpensive way to have a capital campaign or membership drive for your organization. With the low overhead, more organizations are adding Internet fundraising to their repertoire. While there are no specific guidelines for soliciting money or gifts online, there are some general considerations.
Verification of Deduction
Not all contributions to legitimate organizations are tax-deductible. The organization must be a 501(C)3 organization. The organization should indicate this fact on its website, and potential contributors can contact the IRS or locate a copy of Publication 68, often available at libraries, to determine whether that statement is valid before making a donation.
In general, the CAN-SPAM Act prohibits sending unwanted emails. Sending an email to a group asking for money or gifts when those people have not signed up for information from your organization is a violation of the law. Anti-spam laws require a double opt-in for all information, meaning that people have to sign up for organizational information and verify, usually through an email link, that they requested the information.
The IRS requires that nonprofits send a written acknowledgment to people for their contributions. For online solicitations, this written acknowledgment can be in the form of an email thanking someone for a contribution, or it can be a receipt from the organization’s merchant account.
Anyone receiving an online charity request should beware of scams. Some people create an organization as a front to get money from people. Because of the global audience the Internet provides, these scammers can find new targets constantly. Beware of any organization that does not provide an address, phone number, and email contact.