Recently, a colleague reported hearing a speaker say the following: “Boards can decide if they want to fundraise or not.” Blasphemy. For a 501(c)(3) tax exempt organization, it is not a choice. All board members must be active participants in fundraising. Again, no choice, but reality is that too many boards fail, with impunity, to fulfill this obligation.
Instead, they think they have found an out by jumping on what appears to be a small but growing trend: creating another 501(c)(3) organization to do the fundraising. Read more