501(c)(3) Tax ID: What you need to know when hosting a fundraiser

Often groups have questions regarding their tax IDs, specifically the 501(c)(3) tax status. If you’re unsure about what this tax ID is and how it applies to your group, then this is the post for you!

What is a 501(c)(3)?

501(c)(3) is a tax status that allows organizations to obtain benefits like exemption from federal income tax and the capacity to receive charitable contributions that are tax deductible. For an organization to be tax exempt it must fall under one of the following categories: charitable, educational, scientific, literary, part of a sports competition, testing for public safety, or preventing cruelty towards children or animals.

How does it apply to your fundraising dinner?

When your fundraiser has been confirmed your group will receive an email from GroupRaise asking you to bring a copy of your tax ID to your event. Groups are not required to have a 501(c)(3) tax ID in order to host a fundraiser with GroupRaise, however, a small percentage of our partner restaurants only host fundraisers for tax-exempt organizations. Your group can contact your chosen restaurant directly to find out if they require a tax ID or not. Most don’t, but if they do, this is what you can do.

If your group is affiliated with a church, you automatically have tax-exempt status without applying to the IRS, and the leader of your church will be able to provide you with your tax ID.

If your group is affiliated with a school, university, or any other educational institute, your school would have applied for, and received, a 501(c)(3) status. Groups can contact the school’s administration, who may be able to provide your group with the school’s tax ID. Student organizations are eligible to apply for their own 501(c)(3) status, and some educational institutes require groups to do so. For this reason, it is best to reach out to your student officers or administration who can provide you with more information specific to your school.

If your group is a non-profit then most likely you will already have your 501(c)(3) tax status. If your group doesn’t you can start the application process for a 501(c)(3) at the IRS website.

If your group is raising for a non-profit, you can contact the organization to ask them for their 501(c)(3) tax ID.

If you have any further questions you can always contact info@groupraise.com. All that’s left is to Meet. Eat. Raise.