Eyes on the prize: Private organization fundraiser support

  • Published
  • By 341st Missile Wing legal office
MALMSTROM AIR FORCE BASE, Mont. --  Flower sales, mustache competitions, burrito sales and raffles; a previous article by Capt. David Dayton discussing Private Organization fundraising activities cited these as examples of activities that could be conducted here at Malmstrom Air Force Base (assuming the proper approvals are obtained in advance). So, what do they all have in common?

Aside from being designed to improve the finances of the executing PO, they also provide some sort of incentive to the participants. Whether the purchaser is receiving an item, a service or a mere opportunity to win a competition, something of value is being provided; and as you might have guessed, the Department of Defense and Air Force have issued guidance regarding where and how you're allowed to get that "something of value."

For our purposes, let's assume an industrious PO is conducting a fundraiser and is attempting to obtain prizes to give away pursuant to a raffle or a competition of some kind. The point of contact for the PO should know his/her first step should be contacting the legal office to get a preliminary read on the legality of the fundraising activity itself. Beyond that, however, the PO should also provide a list of items to be sold or given away so the legal office can identify any issues regarding the source of each prize. Why? Because of a couple of "s" words that can make Air Force attorneys and services personnel cringe: "solicitation" and "sponsor."

Within the context of AFI 34-223, Private Organization Program, "solicitation" refers generally to a POs request for assistance usually in the form of gifts and donations. In other words, asking for money or things the PO can sell or raffle off to get money. The AFI specifies POs may accept gifts and donations but cannot solicit them from individuals, organizations or businesses located on the installation. When soliciting off base, POs must clearly communicate to donors that donations are for a private organization and not for an individual, the base or any official purpose of the Air Force.

Sounds simple enough, right? It is at least until the PO obtains a donation from an off-base supporter and, after the fundraising event has occurred, decides to publicly thank that donor for "sponsoring" the PO's event. What's the big deal, you ask? Well, while "sponsorship" may often be used generically to indicate that a person or entity has simply provided support for an event, the term "sponsorship" has a very specific meaning in relation to activities involving military personnel and their unofficial organizations. Under DoD guidance, a "sponsor" is a person or entity that provides assistance (for example, funds, goods or services) to a Morale, Welfare and Recreation program in exchange for public recognition and/or advertising. This sort of arrangement can only be made by an installation's Commercial Sponsorship Coordinator. (By way of example, the recent Wing Sports Smackdown was an MWR event that properly received Commercial Sponsorship support.)

Under AFI 34-223, POs are specifically prohibited from using Commercial Sponsorship resources and must play by different rules when telling donors "thank you." POs may recognize donors during an event (but not afterward) and such recognition may not be made public. In other words, recognition of donors may only be communicated to members of the PO and any individuals present at the actual fundraising event. By adhering to these guidelines, POs avoid dancing too close to the "sponsorship" issue and also avoid any impression that the PO - and by extension, the unit, the installation or the Air Force - is actually endorsing the donor's business or other interests.

Finally, POs must exercise a certain degree of discretion and deference in identifying and approaching potential solicitation targets. The base's Commercial Sponsorship Coordinator is responsible for obtaining support for a variety of MWR events throughout the year, which requires maintaining positive relationships with a number of national and local business concerns. Due to the highly visible nature of those sponsorships, POs have, in the past, been tempted to approach those same businesses to request donation support for PO fundraising activities as well. Unfortunately, these additional solicitations usually eat into the support that would otherwise be provided to MWR programs or result in a decreased willingness by the companies to provide support to any activity, whether official or unofficial. Since POs must identify the sources of any prizes or sale items when obtaining legal office approval for a fundraiser, this overlap is entirely avoidable and will not be an issue if the PO complies. The best practice is for POs to obtain preliminary guidance from the legal office (during the earliest phases of fundraiser planning, prior to submitting a packet for legal office approval) in order to identify which companies can be approached without hindering MWR program sponsorship.

POs are generally encouraged to be innovative in finding ways to support their activities; however, a small investment in preparation and planning on the front end can avoid some disappointing results and consequences on the back end. Please contact the legal office at 731-2878 with questions regarding proposed fundraising activities.