Nonpro?t groups will get help raising money

The University is trying to help make it easier for philanthropic students to raise money for nonprofit ventures.

More student organizations might soon be able to qualify for tax exemptions with the help of a new group devoted to moving them toward nonprofit status.

The group’s primary function would be to help groups receive 501(c)(3) tax-exemption status, allowing financial supporters to make tax-deductible donations.

“Having 501(c)(3) status will increase their donations and ability to raise money,” wrote Jennings Carpenter, student body treasurer, in an e-mail.

The organization would provide groups a tax ID number they can use to file for exemptions, he said.

Students with short-term nonprofit ideas would apply to the umbrella organization and, if accepted, be able to use the organization to help them fundraise.

Long-term ideas or groups would be able to use the proposed organization for guidance and leadership until they are established enough to stand on their own.

“Three, four, five years down the line when they are strong enough to be on their own, they can apply to the Internal Revenue Service,” Carpenter said.

The umbrella organization would handle many of the technicalities nonprofit organizations face and allow student groups to focus on their charitable goals.

“It would take away a lot of the hoops that student organizations have to scrounge around and figure out how to jump through,” said Dorothy Bernholz, director of Carolina Student Legal Services, Inc.

“It would incubate their non-profit philanthropy.”

Student organizations would be able to creatively raise funds under a 501(c)(3) tax-exemption status. Entities classified as 501(c)(3) non-profits are organizations that solely work for charitable purposes.

Currently, student organizations have to go through either the Office of University Development or the Campus Y to receive tax exemption status, Bernholz said.

Carpenter and Bernholz proposed the idea to the Student Activities Fund Office, the Student Union, the Office of University Development and the Campus Y. Each group will be involved in different aspects of the program.

The new organization would be a fiscal backer for organizations who are unaffiliated with the Campus Y or other existing charitable organizations.

Another part of the proposed organization is a support and learning facility. Student leaders will have the resources to learn how to run a nonprofit organization, apply for grants and report earnings, as well as other tasks.

Jimmy Waters, the co-president of Campus Y, said the group’s tax-exempt status has made fundraising efforts easier.

“It’s easier for us to solicit donations from sponsors and local businesses if their donations are tax deductible,” he said.

Senior Kelly Leonhardt, director of student nonprofit Connected for Cause, said the idea is similar to what her organization is already doing, and thinks the idea is a good one.

“I think if student government was offering a service like this then people would use it and it would be a great educational tool for students,” Leonhardt said.



Contact the University Editor at udesk@unc.edu.