AMERICAN CANCER SOCIETY

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AMERICAN CANCER SOCIETY

ILLINOIS DIVISION

THIRD PARTY EVENT GUIDELINES

The following are talking points to be used when communicating with volunteers about holding third party events.

Third party events are defined as fundraising activities that are organized, facilitated, and executed by volunteers (the “third party event sponsor”), where the net proceeds are donated to the

American Cancer Society (ACS).

Staff may provide suggestions to the third party event sponsor about possible volunteer fundraising activities & events, but may not ask the third party event sponsor to inform ACS about events that they are organizing, facilitating, and executing.

ACS may not solicit or require the third party event sponsor to submit paperwork on third party events.

The third party event sponsor may not state or imply that the event is sponsored by ACS. Because

ACS is not in a position to supervise the event, ACS cannot take responsibility or assume any legal liability for the event.

Also, ACS staff may not plan, organize, facilitate nor execute third party fundraising activities and events.

Collecting Donations at the Event

1.

If the third party event is conducted and promoted in support of the ACS, all proceeds, after reimbursement of direct, out-of-pocket expenses to hold the event must be received by the local

ACS office (either mailed or walked in). The sponsor or any individuals involved with the event may not deduct any fees, commissions or salary from the proceeds.

2.

All checks made payable to the American Cancer Society or ACS must be mailed or walked into the local ACS office in order for ACS to directly deposit donations in accordance with

ACS Illinois Division policy. Checks made payable to the American Cancer Society or

ACS may not be deposited into any bank account by a third party event sponsor .

3.

ACS will mail receipts to donors for checks made payable to the American Cancer Society or

ACS that are greater than $20, through our National Acknowledgment Program.

4.

If the third party event sponsor chooses to set up a bank account in the third party event’s name and accept checks made payable to the event (not payable to ACS), this is permitted.

However, under no circumstances may a bank account be opened under the American

Cancer Society (ACS) name or Federal Employer Identification Number (FEIN).

With this option, the third party event sponsor will write one check for the net amount raised drawn on the account at the completion of the event and made payable to the American Cancer

Society.

5.

If donors receive a benefit in exchange for their donation (e.g., admittance to an event, golf outing, etc.), the third party event sponsor may not state or imply that the funds paid are fully tax-deductible. The donation is only tax-deductible to the extent that it exceeds the benefit to donor amount. For example, if ticket prices to an event are $100 and the fair market value of the event is $75, then only $25 is tax-deductible to the donor. If checks are made payable to

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the American Cancer Society or ACS, then the third party event sponsor must notify us of the benefit to donor amount for each donation at the time ACS receives the checks to ensure proper ACS receipting.

6.

Similarly, if the third party event sponsor is selling goods or services purchased from a store, vendor or Internet in exchange for a donation, only a portion of the donation is tax-deductible.

For example, if a t-shirt worth $10 is sold for $25, and the donor makes the check payable to

ACS, the third party event sponsor may tell the donor that $15 of the donation is tax-deductible.

If checks are made payable to the American Cancer Society or ACS, then the third party event sponsor must notify ACS of the benefit to donor amount for each donation at the time ACS receives the checks. Per IRS rules regarding donations more than $75, which are partly a contribution and partly for goods or services, the organizations must provide a written statement telling donors that they can only deduct the amount of the donation that is more than the value of the goods or services received. This statement must also provide a good faith estimate of the value of those goods and services.

Third Party Event Expenses

1.

Any expenses incurred during a third party event are the sole responsibility of the individuals raising funds for the benefit of ACS.

ACS cannot be liable or responsible for any costs or expenses in connection with the event.

ACS may not reimburse the third party event sponsor for purchase of goods or services used for third party events.

2.

If the third party event sponsor receives donated goods or services, the following language may be used when communicating to vendors:

 “As XYZ group we are hosting an event, in which the net proceeds will be donated to the

American Cancer Society.” The donor must be made aware that the event is not ACS sponsored, but that the ACS is the beneficiary.

3.

If the third party event sponsor purchases goods or services:

Third Party Events may not charge goods under the ACS name nor utilize the ACS

Illinois State Tax-Exempt number or Federal Employer Identification number when directly purchasing event materials or supplies from vendors. Both Illinois and Federal tax laws specify that groups raising funds independently to later provide financial support to the ACS be prohibited from claiming exemption from State and any other applicable taxes on such purchases.

 The sponsor of the event must consider any expenses incurred in production of the event as a donation. If the sponsor wishes to take expenses out of the proceeds of the event and donors are asked to make checks payable to ACS, these expenses may only be paid with cash generated from the event .

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Marketing/Promotion of your Third Party Event

1.

The American Cancer Society/ACS name may not be used to promote the event (print or broadcast), except to inform the public that “A portion of the proceeds from (event name) will go to benefit the American Cancer Society.”

2.

Third party event sponsors cannot sell or give away items to the public that include the

American Cancer Society name or logos, unless the third party purchases the items directly from an authorized, licensed ACS vendor (for example, Relay Gear or Peter

Kleine). This applies to any item that was originally purchased from a store, vendor or

Internet as well as homemade items. Examples of such items with the ACS name or logos include beanie bears, calendars, cookbooks, t-shirts, bookmarks, mugs or candy bars.

3.

The ACS name may not be used in any way that may appear as a trademark or endorsement of the sponsor’s product(s).

Risk Management and Liability

1.

The ACS requests that the net proceeds be donated entirely to the American Cancer

Society.

2.

The ACS cannot be responsible for insurance coverage liability or liquor licensing for any third party event, and cannot issue certificates of insurance for any third party event.

Insurance is the responsibility of the third party event sponsor. Since the American

Cancer Society is not in a position to supervise the event, ACS cannot take responsibility or assume any legal liability or insurance coverage liability for the event as required by our insurance carrier.

3.

According to Illinois Law, raffles and small games of chance cannot be held in conjunction with third party events unless:

The State of Illinois deems that your business/organization is eligible to apply for a raffle permit or small games of chance permit.

An ACS raffle permit cannot be used.

Contact your local city government for guidance if considering a raffle for your third party event.

The amounts paid to purchase raffle tickets are NOT tax deductible.

4.

The ACS is a not-for-profit organization that cannot support or oppose political candidates or parties. A third party event sponsor can invite current legislators to attend third party events. However, you should emphasize to the legislator in writing that since ACS is a non-profit, charitable organization and the proceeds of this event benefit the American

Cancer Society, legislators may not engage in political activity and request that they refrain from doing any campaigning at the event. Giving a specific candidate complimentary passes to an event that others must pay to attend is prohibited.

5.

All third party events held to benefit the American Cancer Society must be non-smoking .

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6.

The ACS reserves the right to decline use of the ACS name for any third party event, benefiting the American Cancer Society, at will. Additionally, the ACS reserves the right to terminate the relationship with the third party event sponsor at will.

7.

The ACS requests that third party events carefully consider their fund raising efforts. Third party event sponsors should consider the following when determining whether to hold a third party event: a.

Is the revenue worth the effort of the volunteer time or is time better spent enhancing an existing ACS event? b.

Is it ethical? c.

Is it offensive to any group? d.

What is the financial risk/outcome? e.

If the third party event sponsor has unanswered questions or feel unclear about any of the guidelines, they should contact their local ACS office or staff partner.

The American Cancer Society appreciates the hard work and effort by our volunteers to raise critical dollars to fund the mission. However, the name and reputation of the

American Cancer Society is more important than any funds raised.

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