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How to Raise Funds for a nonprofit organization on Piglt

Piglt offers a 25% reduction of our platform fees for any Campaign that is raising funds for a nonprofit institution registered as 501(c)(3) in the United States. Contributions to these Campaigns will be processed by Balanced Payments (www.BalancedPayments.com) and will be tax deductible to the extent allowed by law.

Campaigns that are set up to raise funds on behalf of a 501(c)(3) nonprofit organization will have a "Verified Nonprofit Campaign" designation placed on the Campaign page to certify to contributors that funds will go directly to a verified nonprofit.

What is a 501(c)(3)?

The IRS defines 501(c)(3) exemption requirements here: http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Exemption-Requirements-Section-501(c)(3)-Organizations

In general, this exemption is applied to not-for-profit organizations (scientific, charitable, educational, religious, etc.) that must be registered and verified by the US Government through the IRS. Please note that 501(c)(3) tax exemptions and deductions are only available in the United States.

How do I set up my Campaign to offer tax deductions?

U.S. tax laws require all tax-deductible contributions to go directly to a 501(c)(3) organization. If you'd like to ensure that your Campaign's funds are going directly to your nonprofit organization in order to offer tax deductions to your contributors, you must complete the one of the following:

1) If you are a 501(c)(3) nonprofit organization:
• Go to your Campaign Dashboard, Settings Page, and click on the drop down menu designating that you are a “501(c)(3) nonprofit”
• Enter and SAVE your Organization’s Employer Identification Number (EIN) and contact information
• Click the “I’m a Dreamer” tab
• When asked “This Campaign is for:” select “a 501(c)(3) nonprofit”
• Complete the rest of your Campaign-details and Save accordingly
• Launch your Campaign when you’re ready!

2) If you wan to fundraise on behalf of a 501(c)(3) nonprofit organization:
• Click the “I’m a Dreamer” tab
• When asked “This Campaign is for:” select “a 501(c)(3) nonprofit”
• At the top of the Campaign Details put the following statement: “**This Campaign is raising funds on behalf of the (insert Organization name here), a verified nonprofit. The Campaign does not necessarily reflect the views of the nonprofit or have any formal association with it. All contributions are considered unrestricted gifts and can't be specified for any particular purpose.**”
• Complete the rest of your Campaign-details and Save accordingly
• Enter and SAVE the 501(c)(3) nonprofit’s contact information and EIN on Step 3 of Create Campaign
• Launch your Campaign when you’re ready!

How do contributors receive a tax-deductible receipt?
When users contribute they will receive an email confirming the tax-deductible status of their contribution. Depending on the organization, the beneficiary nonprofit may issue a separate tax receipt as well.

When will my nonprofit organization receive the funds my Campaign raises?
Funds will be sent in one of two ways: either directly from Piglt via check or from Balanced Payments, our nonprofit payments processor, who will disburse funds directly to the nonprofit organization at the end of the Campaign’s duration.

How do fees work for Campaigns linked to a 501(c)(3) nonprofit?

All Campaigns on Piglt are charged the following fees:
1. Piglt fee: Piglt's platform fee, which depends on whether or not you meet your goal
2. Third party fees for payment processors (such as Balanced Payments or credit card processor)
For more information about how fees typically work on Piglt, please see our Pricing Tab in our Learn Section.
For Campaigns that are associated to a 501(c)(3) nonprofit, your Campaign is automatically set up with our reduced nonprofit fee structure. Any funds your Campaign receives will be charged 6.75% by Piglt as our platform fee (75% of our usual 5% platform fee = 3.75%), and 3% by Balanced Payments as their payment-processing fee.

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