In order to fully recognize the broad scope of the philanthropy of our collegiate chapters, alumnae chapters, alumnae associations and hope groups (chapters) while allowing chapters to maintain a strong presence with the charities in their local areas, the Delta Gamma Foundation has developed the
Chapter Giving Program. The program is designed to recognize our chapters not only for their gifts to the Delta Gamma Foundation, but also for their gifts to local charities.
Chapters may participate regardless of the type of fundraising they perform (tax deductible fund raisers and non tax deductible fund raisers).
- Your chapter will receive giving credit for 100% of your net fundraising!
- Giving credit is used to recognize chapters for chapter awards and Convention awards.
- The Foundation will be able to recognize and report on national and local philanthropies supported by the over 300 collegiate and alumnae chapters of Delta Gamma.
- Soliciting tax deductible gifts may increase your chapter's fundraising.
- Participating chapters deposit their fundraising with the Delta Gamma Foundation.
- Participating chapters have the option of designating a portion of their net fundraising to qualified local organizations; up to 20% for collegiate chapters or up to 90% for alumnae groups.
- Gift checks are issued to qualified local organizations by the Delta Gamma Foundation. A letter is included with the check identifying the local chapter as the sponsor of the gift through the Delta Gamma Foundation.
Tax Deductible Fundraisers
The Delta Gamma Fraternity and its chapters are formed under section 501 (c)(7) of the tax code and as such gifts to the Fraternity are not tax deductible. However, the Delta Gamma Foundation is formed under section 501 (c)(3) of the tax code which allows donors to take a tax deduction for gifts to the Foundation.
In order to hold a tax deductible fundraiser through the Delta Gamma Foundation, all of the proceeds must go directly to the Delta Gamma Foundation for charitable purposes. Chapters cannot retain a portion of the proceeds for their own purposes. In order for the Foundation to maintain its tax exempt status it is essential that this basic guideline be followed. Chapters may raise funds for their own use, but they may not reference either the Delta Gamma Foundation or make statements suggesting or stating donations are tax deductible.
What qualifies as a tax deductible gift?
In general, somebody has to give something away in order to have a tax deductible gift. Some examples are:
- A simple cash donation
- A ticket to a dinner where the admission price exceeds the cost of the meal
- Goods or services donated to be sold or auctioned
- Goods or services donated to your chapter to assist you with your fundraiser
What are some examples of tax deductible fundraisers?
Collegiate Fundraisers
Anchor Splash™
Anchor Slam
Anchor Bowl
Anchor Tee Off
Most Beautiful Eyes™
Anchor Clanker
Anchor Dash
Anchor Freeze
Anchor Smash
Raffle
Parent's Day Auction
Rummage Sales
Alumnae Fundraisers
"No show Tea"
Non-Event (one group raised $7,100)
Raffle of donated items
Silent Auction of donated item
Home Tours
Garage Sales
Make Bake Sew or Grow
Bingo luncheon and fundraiser
Money tree at Founders Day
Women of Vision
Is there an advantage to chapters soliciting tax deductible gifts? Yes. Donors will make larger gifts with the knowledge that their gifts are tax deductible.
How to Handle Tax Deductible Fundraisers:
If chapters choose to hold a tax deductible fundraiser they need to submit 100% of their gross proceeds to the Foundation. The chapter should:
- Instruct donors/purchasers to make their checks payable to the Delta Gamma Foundation. Donations in excess of $250 will be receipted directly to the donor by the Foundation. Thank you notes should go out from the chapter for each gift.
- Collect all fundraising checks and send them to Executive Offices using the attached form. List the donor name, address and amount of each gift. We strongly encourage you to make a photocopy of each check before sending them to Executive Offices. It can be used for your records and for thank-you notes.
Please do not send cash. Deposit the cash gifts into your chapter account and send a chapter check for the cash donations to the Foundation.
- The Foundation will reimburse your chapter for all costs incurred as a part of your fundraiser. Record each expense on the attached form and submit the form and your original receipts along with your donations. The Foundation will reimburse your chapter for receipted expenses up to your total fundraising. We encourage you to make photocopies of all receipts for your records.
Our chapter is considering holding a fundraising dinner. How can we make it a tax deductible event? The IRS has specific guidelines for advertising and acknowledging dinners or any event where a donor receives something in return for their participation. If your chapter is considering an event of this type, please contact our Foundation Accountant and he can assist you with complying with the IRS guidelines.
How can we advertise our fundraiser?
You can say:
- "Proceeds will support the philanthropy of the Delta Gamma Fraternity"
- "Proceeds will support the programs of the Delta Gamma Foundation"
- "Proceeds will support both the programs of the Delta Gamma Foundation and the ABC local charity"
You cannot say:
- "Proceeds will support the Alpha Beta chapter of Delta Gamma"
- "Proceeds will support the Delta Gamma Fraternity"
What kinds of organizations can our chapter designate to receive a portion of our fundraising? Either national or local 501 (c) (3) organizations who share our mission. In order for the Delta Gamma Foundation to maintain its tax exempt status while remaining consistent with our historical philanthropy, the Foundation will only make gifts to these types of organizations.
How are Gifts of Goods or Services Recognized? If businesses or individuals donate goods or services to your chapter to sell or auction, the business or individual is entitled to a tax deduction. A gift of this type does not need a receipt unless it exceeds $500.00 in value.
Receipts for these donations follow a different set of rules than cash gifts. If the gift of goods or services exceeds $500.00, the donor must prepare and submit a form 8283 to the charity for the charity's confirmation. The charity then confirms receipt of the item. It is the donor's responsibility to substantiate the value of the donation. If you have questions about this procedure, please contact our Foundation Accountant and he can assist you with complying with the IRS guidelines.
Download an *Excel Spreadsheet to be used for Chapter Giving. For more information, contact Foundation Executive Director Betsy Fouss.
Non Tax-Deductible Fundraisers
In general if a chapter is purchasing goods or services to be sold, these fundraisers are not tax deductible.
What are some examples of non-tax deductible fundraisers?
Flower Sales
Nut Sales
Candle Sales
Poinsettia Sales
Wrapping Paper Sales
Cookie Dough Sales
Holiday Card and Stationery Sales
Car Wash
Can our chapter still send our net proceeds to the Foundation?
Yes. Your chapter will receive gift recognition for 100% of your net fundraising just like with a tax deductible fundraiser.
Can our chapter designate a portion of our non tax deductible fundraising to other charities?
Yes. Your chapter can designate their net fundraising to qualified local organizations; up to 20% for collegiate chapters or up to 90% for alumnae groups.
Should our chapter instruct our buyers to make their checks payable to the Foundation?
No. Since this is not a tax deductible fundraiser, your buyers can make out their checks to your chapter.
What kinds of organizations can our chapter designate to receive a portion of our fundraising?
Either national or local 501 (c) (3) organizations who share our mission. In order for the Delta Gamma Foundation to maintain its tax exempt status while remaining consistent with our historical philanthropy, the Foundation will only make gifts to these types of organizations.
Download an *Excel Spreadsheet to be used for Chapter Giving. For more information, contact Foundation Executive Director Betsy Fouss.
Still have questions? E-mail dgfoundation@deltagamma.org or call 1-800-644-5414.
*you will be prompted for your myDG login.
revisions by SDH Tuesday, October 20, 2009