What is the best way to start collecting donations in shortest time-frame?

Question

I'm thinking of starting collecting donations for an urgent cause. The time restraints prohibit me start a non-profit corporation for this.

Is there an alternative way (in legal terms), that I can collect donations through 3rd parties (Such as PayPal, Amazon, Google, etc.) and then contribute the funds to a non-profit of my choice?

I want to know what are the legal implications of privately sourcing donations this way and what are my alternatives apart from starting a non-profit or getting my donors to contribute to already existing charities (Red Cross, etc.).

Thanks

Answer 1

its quickest if you just hold the people at gunpoint

Answer 2

Without some kind of established organization or service, I doubt you'll get much donations, if any at all. I would suggests offering some kind of service (ex: Car Wash, Bake Sale, etc...) with the proceeds going into your "non-profit" organization.

If done decently you can make 100-500+ dollars in a Car Wash. I would suggest finding a decent location though and asking the property owner.

Now if you want to do this strictly online, you would have to setup a PayPal account (they will provide links to donate) and people can donate to you directly. Again though, unless you have some kind of cause, I doubt people are just going to throw money your way.  

Answer 3

If you don't want to set up your own 501(c)(3), the quickest way is to find an existing 501(c)(3) that would be willing to have a segregated account for your particular cause.  That is, find a 501(c)(3)--a church, for example, since they are all 501(c)(3)s--that would be willing to act as a sponsor, while you do all the work of actually collecting and managing donations.

If you collect money through PayPal, etc., and then contribute it to an existing non-profit, the initial contributor will not get the benefit of any tax deduction.  

Follow up regarding the high school student example:  It's very important that an individual who seeks donations on behalf of a true charitable organization have the organization's blessing and authorization to collect the donations.  

Note also that if you do something unrelated to the charitable activity itself to get the money--run a car wash or sell baked goods--it will not be a pure donation, and could be subject to what is called "unrelated business income tax" (UBIT).  You want to avoid UBIT.  If you work with an existing 501(c)(3) they will likely have standard procedures in place for avoiding UBIT.

Answer 4

Setting up a proper 501(c)(3) corporation does not take a long time, but it will make you accountable. It seems that's what you want to avoid, so I assume your unwillingness to state the nature of this "urgent cause" means you are personally interested in the funds. You can always ask people to contribute to an existing, established charity and request that the money go to a specific cause. The cause has to be suitable for that charity, of course.

Money given to you with the promise you will use it for this cause will not be deductible, and you could be liable for fraud if you say otherwise.