USU Group/Club/Organization Fundraising

A tax-deductible gift receipt for a donation is considered a charitable contribution by the IRS.  These contributions can be made in the form of cash, check, credit card, or personal property.  To qualify, the contribution must be voluntary and made without receiving or expecting anything of equal value in return.  Charitable contributions will generate a gift receipt from the USU Advancement Office, which serves as documentation of the donation for tax purposes.

The Application to Raise Funds process will determine if the fundraiser qualifies for a charitable gift receipt issued by the USU Advancement Office.

1. Collecting donations at meetings and events.
   
   
2. Charging admission to scheduled events such as speakers, conferences, films, tournaments, dinners and dances.
   
   
3. Conducting sales at approved events or at Student Center outdoor tables.
   
   
4. Soliciting donations via letter/email campaign. Solicitation letters must be pre-approved by University Advancement Office. The solicitation must be clear that donations are not tax- deductible if your organization has not received approval to solicit for charitable contributions.
   
   
5. Crowdfunding through AggieFunded is available to Student Organizations or club sports in good standing that qualify to receive charitable contributions for their fundraiser as long as the contributions support the charitable purpose of Utah State University. For more information on how to get started go http://www.usu.edu/aggiefunded.
   
   
6. Groups/Organizations may solicit donations from family, friends and alumni under the following criteria:
   1. Your organization must possess an internal list of contacts. USU will not provide a list or database of alumni, friends or family.
   2. The list of contacts must be vetted through the USU Advancement Office to determine potential conflicts with other USU fundraising priorities.
      
      
7. Drawings/Raffles – The State of Utah defines raffles as a “lottery”. Such games are considered gambling in the State of Utah and as such, organizations cannot hold raffles. Instead, organizations can hold drawings for prizes, so long as no money for specific tickets are exchanged. An exemption to this is when the individual purchases a ticket for an event and their name goes into a drawing. This means they have purchased the right to be at an event and receive benefits from attending. 

1. Fundraisers must comply with licensing and tax laws, as well as University and campus regulations.
   
   
2. Solicitation of donations in outdoor areas is prohibited except immediately outside the Student Center, without sponsorship by an approved University Organization and/or approval of the Vice President of Business and Finance as per University Policy 343.  
   
   
3. Student Clubs, Groups, or Organizations may not sign any contracts on behalf of the University or act as its agent as per University Policy 528.
   
   
4. Group/Organizations planning to use an off-campus or commercial promoter to help sponsor or organize an on-campus event must contact their team club/advisor for special guidelines before making any arrangements or contractual agreement. All publicity and promotion must be clear that the function is sponsored by that organization and not as a representative of the University.
   
   
5. Student Clubs, Groups, or Organizations must clearly identify itself when raising funds.
   
   
6. No individual member may profit from an organization’s fundraising nor may a member be a paid participant in a fundraising event.  This is not intended to prevent legitimate and fair compensation for performance by an individual member who contributes to the event through his/her artistic, musical, dramatic, or other talent.
   
   
7. If you are charging admission or planning on selling goods at the fundraising event, you may need to collect sales tax for the admission charge or any items sold at the fundraiser.  The Application to Raise Funds approval email you receive will indicate if sales tax needs to be collected

   1. If you are selling branded goods, you are required to pay royalties on those goods. The licensee will collect and pay the royalties to the university on your behalf.

8. Student Clubs, Groups, or Organizations should be aware of and adhere to the brand standards of Utah State University per University Policy 510.
   
   
   1. No restricted logos will be used (Bull or President Seal)
   2. All prints, uniforms, clothing, etc. must be produced by a USU Licensed vendor only.
   3. The University Trademark Review Process must be followed.
      
      
9. Students and advisors should participate in the Cash and Credit Card Handling Training to learn and agree to the University cash handling procedures.  The on-line training can be found at https://usu.myabsorb.com/#/online-courses/d94f2632-96a5-478d-ae96-a8ff0e9b5a78

After approval, please contact USU Event Services at https://events.usu.edu/ to reserve a space on campus to hold your fundraiser.

A Sponsorship is a gift of cash from a business to support a university event in exchange for specific promotional benefits.  Only group/organizations pre-approved by completing the Sponsorship Application at least ten business days before reaching out to businesses will be allowed to raise additional funds through Sponsorship.  Applicants can expect a response via email within five business days of submitting a completed application.  The email will contain important information pertinent to your sponsorship plans. 

Since the University must pay federal income tax on net revenue from advertising, it is essential to structure the contribution as a qualified sponsorship rather than taxable advertising.

The IRS has created guidelines to help distinguish between sponsorship and advertising.

Sponsorship:

• Mention of location, phone number, website.
• Value-neutral descriptions, including displays or visual depictions, of the sponsor’s product line or services.
• Displays of brand or trade names and product or service listings.
• Logos or slogans that are an established part of the sponsor’s identity.
• Mere display or distribution (free or at a cost) of the sponsor’s product at a sponsored activity.

Advertising:

• Qualitative or comparative language.
• Price information or other indications of savings or value.
• An endorsement or inducement to purchase, sell, or use the sponsor’s service, facility, or product.
• A single message containing advertising and acknowledgement is considered 100% advertising.

• Payments that are contingent on the level of attendance at events, broadcast ratings or other factors indicating the degree of public exposure.
• The right to limit distribution of competing products or services in connection with the payment.

Group/organizations receiving advertising revenue will work with their Business Manager to report revenue amounts to the Controller’s Office.  Net income from advertising will be taxed at regular corporate rates and charged back to the group/organization.

Start by contacting Colleen Hobson in University Advancement at colleen.hobson@usu.edu.  She will collaborate with you to develop a sponsorship plan that aligns with University policies, supports your marketing goals, and secures the necessary approvals from USU staff.

It depends on the nature of the sponsorship.  If a sponsorship provides the donor with significant benefits, such as advertising or promotional opportunities, it is not considered a charitable contribution and would not qualify for a tax-deductible receipt.  These types of sponsorships would be considered taxable advertising and will be taxed at regular corporate rates and charged back to the group/organization.  Therefore, it is important to structure your sponsorship as a qualified sponsorship, ensuring it provides no substantial return benefit to the sponsor, thereby qualifying it as a charitable contribution.

The Sponsorship Application process will determine whether a sponsorship qualifies for a charitable gift receipt issued by the USU Advancement Office.