Eligibility 101: What can I raise money for? What CAN'T I raise money for?
To fundraise on ioby, your project must be:
- Be based in the United States
- Have a public benefit, rather than private benefit
- EITHER be managed by a 501c3 nonprofit organization or government entity, OR have a fiscal sponsor (ioby can serve as your fiscal sponsor - information about this service can be found here).
Not sure if your project is eligible? Check out the glossary of legal terms below!
(Still not sure? Contact us at email@example.com or (917) 464-4515 x7)
501c3 nonprofit: An organization as described under Section 501(c)(3) of the US Internal Revenue Code, such as a public charity or private foundation. This type of organization is exempt from federal tax and may receive charitable, tax-exempt donations. You may search registered 501c3 organizations here.
Fiscal sponsor: A fiscal sponsor is a nonprofit organization that has agreed to manage the funds raised by an informal group or individual for a charitable project. Often, fiscal sponsors accept charitable, tax-exempt contributions on behalf of the unincorporated group or individual.
Government entity: Charitable contributions made to governmental units are tax-deductible under section 170(c)(1) of the Internal Revenue Code if made for a public purpose. Therefore, government entities may receive a direct disbursement from a nonprofit organization without fiscal sponsor oversight. Examples include municipalities, public schools, libraries, or townships. To verify that we may disburse charitable funds to a government entity, ioby staff will ask for a Governmental Information Letter.
Private benefit or private inurement: When the person or group raising the funds intends to spend them on private interests, or may themselves benefit from the possession of the funds or items purchased with the funds. For example, a private interest may include raising charitable funds to pay oneself for a service or to purchase property. It may also include raising funds to repair one’s family home or to plant a garden on private property. Private benefit may also include spending charitable funds to purchase items that will be used in one’s own home, or the home of select friends or family.
Public good: According to the Internal Revenue Service:
“IRC 501(c)(3) exempts from Federal income tax: corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation (except as otherwise provided in subsection (i)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office.”
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