Chapter 3: Legal Aspects of Fundraising
Fundraising excellence requires adherence to the letter and spirit of legal and ethical standards. This chapter reviews the most significant legal issues for fundraisers. The legal duties of care, loyalty, and obedience relative to fundraising responsibilities and the best practices to fulfill these duties are explained. Issues and best practices that emanate from state law such as the oversight role of the attorney general, enforcement of gift restrictions, and other topics are explored. In addition, ramifications of federal law such as the IRS 990 form, distinctions between types of organizations (public benefit charities, member benefit organizations, and private foundations), and other federal law issues are highlighted. Finally, this chapter offers best practices that impact fundraising relative to other topics such as international philanthropy, donor privacy, confidentiality, and more.
Philip M. Purcell
Philip M. Purcell, CFRE, has enjoyed a 30-year career in planned giving and currently serves as the Director of Planned Giving for the Central Territory of the Salvation Army. Phil is Senior Consultant and the lead gift planning attorney for the Heaton Smith Group, and serves as Editor for Planned Giving Today, a monthly national publication. Phil teaches courses on law and philanthropy, nonprofit organization law, and planned giving for the Indiana University Maurer School.
Chapter author Phil Purcell discusses legal aspects of fundraising with Achieving Excellence editor and Director of The Fund Raising School Bill Stanczykiewicz.