The U of M is grateful for community partner support and wants to ensure that organizers are aware of tax regulations tied to fundraising event revenue and expenses.
Because UMF is not hosting this event, you will not be able to use UMF’s 501(c)(3) charitable classification, federal tax ID number, or state of Minnesota sales tax exempt certificate.
What UMF can receipt
UMF is only able to provide tax-deductible receipts for outright donations directly to UMF — monetary donations not related to receiving something in return. Examples of non-tax-deductible payments include, but are not limited to, event registrations, raffle tickets, food, beverage, auction items, prizes, and gifts. If any of the above activities are included in your event, the event organizer should:
- Collect all payments (“revenue”) received during event
- Use event revenue to pay direct event expenses, such as venue rental, food, and beverage.
- Send one check to UMF for the net proceeds from the event (net proceeds = amount remaining after all direct event expenses have been paid). Outright donations collected during the event and made payable to the University of Minnesota Foundation are fully tax-deductible.
- Receipt options
For event net proceeds submitted in one check, UMF will provide one gift receipt. Outright donations made payable directly to the University of Minnesota Foundation will receive individual receipts directed to the check issuer.
Event expenses and licenses
There may be legal and tax implications for anyone who uses his or her personal bank account to process event revenues and expenses. Contact your legal advisor, tax advisor, or bank representative for counsel in this area.
Permits and licenses
Organizers are responsible for obtaining all necessary permits and licenses and ensuring compliance with all applicable city, county, state, and federal regulations.
Event expense liability
Organizers are responsible for all event expenses. UMF cannot process expenses or credit/debit card transactions for your event. If event expenses exceed event revenues, neither UMF, nor its affiliates, nor the University of Minnesota, will be held liable to pay these expenses. See the indemnity clause.
Community event organizers are responsible for obtaining all necessary permits and licenses and ensuring compliance with all applicable state and federal regulations. If you are considering raffles or charitable gambling as part of your event, we suggest that you visit the Minnesota Gambling Control Board website.
Auctions, raffles, and sponsorships
Community partners may consider an auction, raffle, or sponsorships in support of their event.
UMF will not be held liable in any claims or issues related to event live and silent auctions and will not take possession of, be responsible for, nor provide receipts for any items contributed for event auctions.
Raffles and charitable gambling
For groups considering raffles or gambling as part of an event, visit the Minnesota Gambling Control Board website at www.gcb.state.mn.us to review state regulations.
Sponsors can provide funds or goods/services to subsidize the cost of hosting an event. Sponsorships should be directed to the event organizer and cannot be receipted by UMF.
Visit the Minnesota Attorney General’s Office for guidance on hosting charitable events.