How to Set Up a Memorial Fund
Memorial funds are a great opportunity to honor loved ones. With a memorial fund you can celebrate your loved one by supporting causes that positively impact people and communities. While setting up a memorial fund is a great way to create a lasting legacy, it can feel confusing and complex. In this article, we will learn about what a memorial fund is as well as tell you how to easily set up a memorial fund.
When thinking about how to set up a memorial fund, it is important to know the difference between memorial funds created as a nonprofit and those that are not. Nonprofit memorial funds allow you to raise money through tax-deductible donations and distribute money through grants and scholarships. Memorial funds you create using a crowdfunding site, personal or business bank account, or other fundraising tools, may not be the best choice due to potential tax issues. By guiding you through this process, CharitySmith can help you create a lasting legacy that supports charitable causes and honors your loved one’s memory.
What Is A Memorial Fund?
A memorial fund is a charitable fund one can create in memory of someone that has passed away. It serves as a way to honor their memory and create a lasting legacy. This is done by supporting causes and organizations that were meaningful to them during their lifetime with grants and scholarships. While GoFundMe and similar crowdfunding websites are pretty common these days, it’s important to be careful about potential tax burdens.
When you raise money through a crowdfunding site, or with a personal/business bank account, you are responsible to pay taxes on the money you raise over $600. It’s also important to think about the related fees and responsibility of managing the funds. The money you raise through these methods is not considered a donation, and is not tax-deductible for the donor. To start a nonprofit memorial fund you must fill out the paperwork to create a new 501(c)(3) nonprofit or partner with an existing nonprofit.
CharitySmith Is Here To Help
CharitySmith is the most effective way to create and share a nonprofit memorial fund. Funds created with CharitySmith fall under the umbrella of our 501(c)(3) public charity. As such, all donations are tax deductible and comply with federal law and tax requirements.
What We Do
CharitySmith handles all the work of running a nonprofit for you. We open the bank account, file state and federal taxes, file charitable registrations, accept donations, provide donor receipts and provide financial reports. Let us do the paperwork so you can focus on doing the good. We will help you tell a heartfelt story through a memorial website that captures the essence of your loved one and clearly explains the purpose of the fund. Our memorial websites make it simple and easy for people to donate to your fund. Your website can also be linked to your social media accounts in order to easily draw attention to your cause.
Choosing the Right Cause
It is best to think about organizations or causes that represent your loved one’s interests and values. Think about their passions and find areas where their memory can make a meaningful difference. Common causes include: education scholarships, scientific research, local community projects, or support for nonprofits and those in need. When starting a fund with CharitySmith, you are able to choose the causes your fund supports. You choose if the cause is local or national, specific or broad.
Creating a scholarship in your loved one’s name can be a meaningful way to honor their memory while supporting students in need. You can work with your loved one’s high school or college to establish the scholarship and CharitySmith will ensure the proper management of funds.
Facebook makes fundraising simple. CharitySmith is enrolled with Facebook as a registered 501(c)(3) nonprofit and can accept donations on behalf of your Fund. They do not charge any fees and will send a receipt to the donor. We will provide a step-by-step guide to starting a Facebook fundraiser in our “Welcome Packet”.
When stating a memorial fund, it’s important to navigate the process with care and consideration. CharitySmith makes this process easy so you can focus on honoring your loved one’s memory.