Child collecting money for charity?

Question

My 9 yr old daughter started telling some children in school that she is collecting money to donate to the poor, some of her classmates have contributed to this cause. She has opened up a bank account and decided that all of the money she deposits to this specific account is going to go to the poor at the end of the year. She is interested in getting the word out asking others outside of her school for donations as well. She is a very good hearted child and very sincere in wanting to help people in need. Once she collects for the poor her she wants to come up with another charity to collect for next year. I am interested it finding out if anyone knows if it is necessary to create a non-profit organization, if she starts asking the public for donations? We were thinking of creating a website as well...does anyone have any ideas or insight on this topic. I don't know much about doing this and I would like to encourage my daughter with this project. Thank you

Answer 1

you would not create a nonprofit to collect the money - you give the money to a nonprofit (if somebody raised money without giving it to a nonprofit they could be charged with fraud but as long as all the money goes to a nonprofit everything is fine)

many non profits have their own web sites
if you want to e-mail your friends and relatives of what charity you are raising money for and the charities web site I am sure that the nonprofit would be happy

I volunteer and fund raise for the Canadian Breast Cancer Foundation
I sign up for "The Run For The Cure " in May on the web site and people donate under my name until the run on September 30.
http://cbcf.org/en-US/How%20you%20can%20help/Donate.aspx

***I would also recommend that you look into the nonprofit and see how much money goes to the cause you want to support ans how much money goes to administration/advertising.

Answer 2

You don't need to open a non profit if you're going to give the money to a non profit. I would, however, figure out EXACTLY where the money is going. "the poor" is really vague. She could be using the money to buy bread and peanut butter to hand out sandwiches to homless people, or she could be giving it to Salvation Army or the Homeless Coalition. I woul start by knowing where the money is going so she can say, "I'm collecting money to give to Feed the Children" or wherever the money is going. Good luck with this- I think it is awesome that you've raised such a caring child.

Answer 3

Great idea, congratulations on having a daughter who has so much depth in her life. She could start it out as a non-profit, non-taxable charity organization. I think it is a 501 c3 like a church. She could get the media involved to let people know the website and the focus of the donations. She could sell some products like fire extinguishers, first aid kits, calendars. There are some companies that have products for fund raising situations. I wish you the very best.

Answer 4

One will have to get some approval in doing this or else you will pay tax and get in trouble for not doing so. I think this is an exceptional thing your child is doing except in what areas are she gonna give to the poor and how will it be obtainable.You get this project registered --non profit and you should have no problems.

Answer 5

Yep, get legal advice. I can tell you, tho, that you need to supervise the entire thing.

Answer 6

You will need legal advice for it.