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Laws and Ordinances

One of the areas of concern when planning local community-based fundraisers is making sure you know what you can and cannot do. Local laws and ordinances vary tremendously from county to county. Some are not well known, but may be enforced.

It is your responsibility to check with the county clerk's office, city hall, or any city permit offices to make sure you have all necessary licenses or permits. Permits may be required for:

  • The sale of liquor, including wine or beer

  • The sale of raffle tickets

  • Bingo or other games of chance

  • The use of rides or amusement park activities

  • Soliciting of any kind

  • Depending on where you are holding your fundraiser, you may need additional permits. Give yourself adequate time to apply for and receive such permits. There may be a wait of several weeks or, in larger cities, even a few months before you receive the required licensing. In addition, find out how long the permit is good and if you will need to reapply if a similar fundraiser is held in six weeks, six months, or a year.

    In some cases, the sale of food and beverages requires a permit from the local board of health, unless you are working with an established food provider (a caterer or restaurant) who already has the necessary permit. In other situations, you are required to use a specific vendor who is under contract to the facility you have selected.

    On a broader scale, be sure to follow the latest state laws. For example, at the time of this writing, various states are making changes to their privacy laws to protect the identity of donors. In another example, states are changing laws that ease the restrictions for nonprofits in spending endowment money. One way to stay current with state and federal laws is to regularly check the website for the Association of Fundraising Professionals, at www.afpnet.org. Also check with legal and accounting professionals who are well versed in all areas of nonprofit organizations.

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    4. Laws and Ordinances
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