Fundraising law? (Chicago: deductible, income, income tax)

[missmeli0501]

What are the legalities of collecting money on the street? I am participating in the "Run For Their Lives" event for PAWS Chicago and I'd like to raise as much money as possible, but within legal boundaries. I know there is great success to be had by people giving $1 here, $3 there, so what do you think I should do?

Thanks!

[JanuaryGirl]

If I were you I would look up the Alderman of the district you would be soliciting in and ask them about regulations. You probably have to get some kind of permit, otherwise it will be considered panhandling.

[JDR1837]

I hate to break it to you, but any money you get without paying taxes is illegal. The only way around it would be to talk to a district official for a permit. Otherwise you could get pegged for income tax evasion.

[Avengerfire]

PAWS Chicago, a 501(c)(3) non-profit organization, has been awarded a Four-Star rating from Charity Navigator, the country's premier independent charity evaluator. Contributions to PAWS Chicago are tax deductible to the extent provided by law.

[jessiegirl_98]

Originally Posted by JDR1837

I hate to break it to you, but any money you get without paying taxes is illegal. The only way around it would be to talk to a district official for a permit. Otherwise you could get pegged for income tax evasion.

As long as you are soliciting for a 501(c)(3), which as Avengerfire pointed out those organizations are, then you are fine. I run a non-profit and we don't pay income taxes, nor do those people who collect money for us as it is a donation!!

As for collecting on the street.... that, I don't know.