✨ Fundraising

Our Residents Council is a 501c(3) organization, and we do fundraising to express appreciation to staff via collection to a fund but not a separate bank account. Here is our reasoning:

Does the activity of soliciting cash from the elderly residents of a retirement community and then distributing that cash to the employees that have rendered services to those residents fall within the range of activities permitted under Section 501(c)(3)?

Response:

This activity is an appropriate exempt activity because its purpose is to improve the lives (and reduce the distress) of elderly residents by rewarding the employees that have rendered services and by encouraging them to render even better services in the future.

I'd appreciate knowing how other CCRCs handle this.

At our suburban Baltimore, MD, CCRC has a rigidly enforced no-tipping policy. We hold two resident fund drives per year for our Employee Assistance Fund. We raise about $90K - $100K in each campaign and distribute the proceeds based on hours worked in the last six months to our approximately 200 hourly employees. Most recently, the most significant semi-annual gifts were in the $650.00 range. We pay the income tax, so the amount distributed to each employee is free and clear. Our Administration (CEO and CFO) are strong supporters of the resident's efforts and cooperate by providing hours worked, etc. We are free to publicize the progress as we see fit.

I include a link to how we handle publicity, etc., here for the Employee Gift Fund. We also are not allowed to use the email "blast." http://www.ghbcresidents.org/contentimages/ContentCouncilCommittees/EGF%20Charter%2008-20.pdf

I'm a member of a Life Plan Retirement Community. Because we have a no tipping policy for employees, we hold an annual fund drive to solicit contributions from residents. Our Administration will not allow the Community Email Manager to send broadcast weekly bulletins regarding progress and vignettes to encourage contributions. Although, the fund is sanctioned and described in our Residents' Handbook, they feel any administrative support of this nature is a conflict of interest. I would greatly appreciate any thoughts, procedures that other communities use to support employees.

Thanks in advance.