Legislation

“Is it the end of the line for fundraising by phone?” was what many nonprofit organizations were pondering last year when more than 48 million Americans signed up for the National Do-Not-Call Registry. While the law clearly stipulates that charitable and political calls are exempt, many members of the public still are unaware of the distinction.

A Harris Interactive poll of 1,011 people in August 2003 found that 37 percent thought that the federal do-not-call list also applied to charity calls.

A change to the United States Postal Service’s Cooperative Mail Rule went into effect late last year, permitting nonprofit mailers to partner with third-party, commercial fundraising firms while still retaining the ability to mail at nonprofit postal rates. Previously, if a nonprofit group entered a joint venture with a for-profit company, any resulting mail would be ineligible for the nonprofit rate.

While the goal of any good fundraiser is to raise funds, it’s important to know that not all gifts are created equal. For instance: An alum gives his cattle ranch to his college or a patron gives the controlling interest of her business to the local art museum. These gifts might be of great value, but they also might have unexpected income-tax consequences for the receiving organizations.