Information and guidelines for fundraising

Families should direct all donations to their FSP page or through the Reece’s Rainbow PayPal account (as Friends & Family to being sure to put the family name in the ‘notes’ in PayPal.)

  • ONLY shipping costs for fundraiser items can be sent separately to a personal PayPal account.
  • Advocates are required to use the Reece’s Rainbow PayPal account for any online fundraisers. (

Firstly, online raffles are illegal in ALL of the US States. For your give-away to be legal and not considered a raffle, please make sure:

1. You call it a Give-Away. There should be no mention of ‘raffle’ in your posts about it.


2. People are NOT buying ‘chances’ or ‘entering’… they are DONATING. The post can request a DONATION of certain amounts for the grant fund but people are not winning they are being given the item, basically. It is a give-away and people can enter it and they can also make a donation but a give-away must have a free way to enter.
3. You need to also include ways people can enter without donating. So, sharing on facebook or emailing or tweeting or posting on their blogs or just leaving a comment. And you actually do need to include these names in the drawing.
4. All donations through the families’ FSP page are tax deductible, as Reece’s Rainbow is a 501(c)3 non-profit. When you have your fundraisers or giveaways, all donations to your FSP page will be protected by the rules governing a non-profit in regards to a give-away. Personal PayPal accounts are NOT allowed for donations. You CAN ask your donors to send a SEPARATE amount through PayPal to you to cover your shipping costs. This amount will not be tax deductible and this should be specified to your donors.

Fundraisers using outside businesses or multi-level-marketing opportunities and payments for goods or services can be made directly to the business. Donations or costs related to other businesses are not tax deductible. 

5. If you use social media or a blog to post about your giveaway you must direct the donors to your FSP page to make their donation. You may request a screenshot of their donation receipt before sending any goods or services.  If you need, Michelle can confirm the donation for you.

For definitions of various types of fundraisers please CLICK HERE.

  • Again, all online raffles are illegal in every state in the US. ​Raffles combine all three elements of (i) pay-to-play, (ii) prize, and (iii) random drawing. A promotion with all three of these elements is a lottery (i.e., form of gambling). Without a free way to enter, your fundraiser is legally considered a raffle and is therefore, illegal.
  • The free entry has to be understandable and visible on the online fundraiser.
  • You will not be allowed to share your fundraiser in any of the Reece’s Rainbow groups if it is illegal.
  • These are IRS laws, not RR’s but they must be followed by ALL of our families and advocates.
You should also be sure to thank anyone for their donations towards your child’s grant fund.

If you have any questions, just ask


This post was confirmed as accurate and up to date on 9 June, 2015 per IRS laws [stated by legal council]