On behalf of our nonprofit organizations, we enlisted the help of one of the nation’s largest and most respected accounting and tax firms to ask the Internal Revenue Service for guidance. The result of those efforts is what is known as a private letter ruling, issued in July 2009. In 2014, our tax advisors reviewed all the information published by the IRS since the 2009 ruling, and again confirmed our understanding. If properly managed, RaiseRight programs and gift card fundraising do not violate any of IRS tax codes for nonprofit organizations, nor does it expose your participants to additional income tax exposure.
Visit our Tax Topics FAQs for a copy of the Private Letter Ruling and more information.