Section 4:
Fundraising

Fundraising Approval

No matter the kind of fundraiser your group intends to hold, you must first submit a Fundraising Request on The Link. All planned fundraiser requests must be submitted at least 2 weeks in advance of the start date. This means if you are selling tickets to an event, the request must be submitted 2 weeks before you plan to start selling tickets. Exceptions will be made if someone donates to your organization without being asked and without notifying your group. Depending on the details of your fundraiser, you may also be asked to schedule a meeting with the Office of Student Affairs.

The Office of Student Affairs serves as the initial approval for all fundraisers. Depending on the type and size of a fundraiser, the request may need to be approved by University Advancement. University Advancement is responsible for all fundraising activity at Wake Forest University. All charitable contributions must be processed through the University Advancement gifts team. Advancement will then deposit all charitable contributions and issue gift receipts for eligible contributions. Additionally, Advancement can provide advice and guidance on what constitutes a charitable contribution, the processing of contributions, and fundraising campaigns

If you are sending a letter asking potential donors to make a contribution, the full text of the letter must be attached to your Fundraising Request and must be approved by the Office of Student Affairs and University Advancement before the letter is sent. 

Types of Fundraisers

Sale

A sale refers to anytime a student organization collects funds and gives out something of value in return. Typical items sold by student organizations include tickets to an event, merchandise, and baked goods. All sales are required to collect Sales Tax (currently 4.75% North Carolina State tax + 2.25% Forsyth County-wide tax) on each transaction. Taxes must be collected from your customers and cannot be built into the price. Sales may be accomplished through the methods below. 

Sales may not be conducted through personal accounts or third-party vendors like PayPal, Venmo, or Cash App. All revenue from fundraising sales must be spent within the academic year.

Cash

If you plan on accepting cash as a form of payment, you will need to reserve a cash box from the Finance Office (2101) to store the collected cash. When collecting cash, it is important that you do not leave the cash unattended. Be sure your organization works in teams and have two people with the cash box at all times in case someone needs to step away. Cash should not be stored in locations that unauthorized persons may access. Please remember when completing a cash transaction to also collect the Sales Tax total of 7% . If you are selling tickets for $10, you should be collecting $10.70 from each customer. 

If you would like to have cash on hand to make change, you will need to complete a Cash Advance Request Form. If you report that you will need to make change, you will be asked to upload the completed Cash Advance Request Form when submitting your Fundraising Request on The Link.

All cash must be returned to the Finance Office (2101) at the conclusion of the event. This includes all cash collected and remaining change (if requested). If the event ends after business hours, the cash must be returned the next business day. 

Online Sales

Wake Forest University has two systems that student organizations can use to collect payments for sales online. Both platforms charge a 5% handling fee for each transaction. This fee must be paid by the student organizations. 

Once your organization submits a Fundraising Request, the Office of Student Affairs will create a page on one of the online platforms for your fundraiser. Customers can visit this page to register for your event, select the item(s) they wish to purchase, and pay for the items. Publicizing the link to your organization’s page constitutes approval of the information and prices contained on the website. The Office of Student Affairs is not responsible for the consequences of any incorrect information once approval of the website is given. 

Terminals

If your organization is hosting an in-person sale, you can reserve a card terminal from Financial Services. Using the card terminal, customers will be able to swipe their credit/debit card and pay for their selected item(s). The charge for using a terminal is 5% of your sales.

Card terminals do not automatically add tax. Instead, student organizations will need to manually add the sales tax (7%) to the price of the item and key in the total price (the item price plus the tax) into the terminal.

To request a card terminal, you will need to submit a Rental Device Request Form. Once you submit the form, please review the Awareness Compliance Training Document and send a signed copy of the PCI Security and Confidentiality Agreement to Karen Hunter (hunterkk@wfu.edu).

Rentals are subject to availability and duration is limited to three business days. Card terminals must be secured from unauthorized use and theft at all times. If the event lasts for more than one day and the terminal is being kept overnight, it must be kept in a secure and locked environment. A $20 late fee will be assessed for each day terminals are not returned on time.

In the event that the terminal is stolen or there is a suspicion of a loss of data due to a security breach (e.g. suspected virus infection or unusual activity on the terminal), immediately report the concern to Information Security.  Financial Services and Information Security will assess the situation and invoke the necessary incident response plan.

Monetary Donations

Monetary donations include payments made by cash, check, credit/debit card, or a donation of a gift card redeemable for cash where the donor does not receive something of equal value in return. If the donor receives something of equal value in return of their donation, please see the Sale section.

For all payment methods except for gift cards, the funds your organization receives will be deposited into a special account known as a “gift designation” and will be assigned a worktag that indicates your group is the owner of the funds. In general, donations must be spent within the academic year. An exception can be made if the donation counts as a Restricted Gift.

A Restricted Gift is a donation where the donor or group of donors requests that the donation be used for a purpose more specific than broad limits resulting from the nature of your organization, the environment in which it operates, and the purposes specified in your bylaws. Restricted Gifts must exceed $10,000. If a Restricted Gift is less than $10,000, the donor should be contacted to discuss available options. 

Payment via Credit/Debit Card

Donors can pay online via the University Giving Page. In the “Gift Information” section, they should specify the amount to be donated and select “I would like to specify another fund/department. They should then write “[Organization Name] - Law School.” If there is any documentation that states how the funds should be used, please ask the donor to provide that documentation when they make their donation. 

Payment via Check

Donors should make checks payable to “Wake Forest University.” In the memo line, they should write “[Organization Name] - Law School.” Checks should be given to the Budget Office (2101).  If there is any documentation that states how the funds should be used, please ask the donor to provide that documentation when they make their donation.

Payment via Cash

If your organization expects a cash donation (eg, tabling in the Commons), please reserve a cash box from the Finance Office (2101) to store the collected cash. When collecting cash, it is important that you do not leave the cash unattended. Be sure your organization works in teams and have two people with the cash box at all times in case someone needs to step away. Cash should not be stored in locations that unauthorized persons may access. 

If you would like to have cash on hand to make change, you will need to complete a Cash Advance Request Form. If you report that you will need to make change, you will be asked to upload the completed Cash Advance Request Form when submitting your Fundraising Request on The Link.

All cash must be returned to the Finance Office (2101) at the conclusion of the event. This includes all cash collected and remaining change (if requested). If the event ends after business hours, the cash must be returned the next business day. 

Receiving Gift Cards

Your organization may accept donations of gift cards to either give away as prizes or sell. If your organization receives a gift card, you must make a photocopy of the gift card that shows the value and give the photocopy to the Office of Student Affairs. We will then forward the photocopy to University Advancement.

Non-Monetary Donations

A material donation is any donation that does not fall under one of the categories listed in the Monetary Donation section. This can include handmade items, supplies, food, gift baskets, etc. Before making a non-monetary donation, the donor must complete the In-Kind Donation Information Form. This form will ask them to report the Fair Market Value of the item, defined as the price that the item would sell for on the open market. Please refer the donor to IRS Publication 561 if they have additional questions on defining the Fair Market Value of an object. The donor will also need to attach a 3rd party estimate of the value to the In-Kind Donation form. A receipt of purchase will qualify as a 3rd party estimate.

Depending on the Fair Market Value of an item, University Advancement may require your donor to take additional steps before you can accept the donation. If a gift’s value is between $500 and $5,000, the donor will need to complete IRS Form 8283. If a gift’s value is above $5,000, the donor will need to complete IRS Form 8283, obtain a 3rd party appraisal of the gift (paid for by the donor and non-deductible), and the Gift Acceptance Committee must approve the gift.

Generally, gift credit can be given to items that are sold or used to advance your organization’s mission. However, there are some cases where gift credit cannot be given. The following are some examples of common exemptions. For a full list, please see IRS Publication 526. 

• Handmade Items - If a donor donates a handmade item, the Fair Market Value of that item is equal to the Fair Market Value of the raw materials used to make the item. 

• Inventory - If a donor donates inventory (property they sell in the course of their business), the Fair Market Value is equal to the smaller of the following: the item’s Fair Market Value on the day it was donated or it’s basis (any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of donation). 

• Time/Services - Donations of time or service are not recognized as a gift by the IRS. No gift receipt will be issued for donations of time and service.

• Right to Use Property - Donations of the right to use property are not recognized as a gift by the IRS. 

If your organization is selling non-monetary donations, your organization must maintain a thorough inventory of items. This inventory should include the item, donor, estimated Fair Market Value, how much the item sold for, and the name of the purchaser. If the item sells for less than the estimated Fair Market Value, the gift credit will equal the amount the item sold for.

Corporate Sponsorships

If a company would like to sponsor an event, they can either pay for the event directly or donate the money needed for the event directly to your organization. If the company donates the funds to your organization, the terms of the sponsorship will need to be reviewed by University Advancement before it can be accepted. If the corporation is using the event as an advertising opportunity or receiving any personal benefits from the event, then the sponsorship will be a true sponsorship and cannot be considered a charitable donation. If the corporation is only receiving name recognition, then the same restrictions as monetary donations apply.

Fundraising to Donate to a Charitable Organization

If your organization is selling items on behalf of a charitable organization, you may promote the items and the organization but purchasers must order and pay for the items directly from the charitable organization’s website, not through payment methods and accounts provided by Wake Forest University. The charitable organization will be responsible for providing appropriate receipts to donors. 

General Fundraising Regulations

The following regulations apply to any fundraiser your organization hosts, no matter the type. 

All gifts are acknowledged in writing by University Advancement. However, Wake Forest University is not responsible for assigning the Fair Market Value to a donation. Any Fair Market Value listed on forms or letters is an estimate provided by the donor and should not be used as confirmation of the Fair Market Value for tax purposes. Wake Forest University also cannot guarantee that donors will be able to deduct their donation from their taxes. Donors should communicate with their accountant and refer to IRS guidelines to determine what is deductible.

When fundraising, you will need to collect information about the donation and the donor. Once your fundraiser is approved, a Google Spreadsheet will be created for your fundraiser and your organization members will be added as editors to the sheet. Your members will be expected to update the spreadsheet anytime a sale/donation is made. An example sheet for each fundraiser type can be found at the link below. 

After your fundraiser is complete, you will also need to submit the following information to the Office of Student Affairs. After you have submitted the information, we will forward it to the Law Budget Office who will forward it to the Tax Department

• Total gross receipts (including contributions)

• Amount of contribution income (total gross receipts minus the fair market value of the goods/services the donor received in return)

• Details on direct expenses (cost of prizes given out, rent/facility charges, food and beverage expenses, entertainment expenses, and other direct expenses)

Raffles

According to North Carolina law, a raffle is defined as a game of chance where participants exchange money for tickets that are then entered into a drawing for a prize. The state of North Carolina restricts the number of raffles that may be held by a single tax entity during one calendar year. For tax purposes, Wake Forest University is a single entity. Therefore, it is not possible to allow student organizations to hold raffles at WFU. 

However, there is no such restriction on the number of sweepstakes an entity may host. A sweepstakes is defined as a game of chance where participants may or may not exchange payment of any consideration for tickets that are then entered into a drawing for a prize. This means that as long as there is a way for participants to enter your drawing without giving something of value, the drawing is not a raffle and is legal for you to host. Something of value includes purchasing tickets with money, liking a post on social media, or following your social media account. 

When advertising a sweepstakes, you must include a notice to participants that there is an option to enter the drawing without giving something of value. Please include the method that participants can use to enter your drawing for free and then say that additional entries can be gained by purchasing tickets (or anything else that involves giving something of value away). Please also avoid using the word “raffle” in any promotions of the event. Either refer to the drawing as a drawing or sweepstakes.