Unit Commanders must weigh the pros and cons of transitioning their unit unofficial activity into a Private Organization. As a general rule, unit unofficial activities’ fundraising efforts are considered “by us for us” fundraising within the meaning of JER Section 3-210. As such commanders may advertise and support their fundraising efforts through the use of official communication systems (to unit members) and by allowing unit personnel to support such efforts while in duty (but not to interfere with the mission) status. On the other hand, unit unofficial activities may not solicit gifts from outside sources or engage in off-base fundraising.
Should We Become a Private Org (PDF)

Organizations composed primarily of DoD employees or their dependents when fundraising among their own members for the benefit of welfare funds for their own members or their dependents. (This includes most Morale, Welfare and Recreation programs, regardless of funding sources, as well as Unit Unofficial Activities)

Under Air Force guidance raffles are allowed by POs only. All funds must directly benefit DoD personnel or their families and cannot be used to raise funds for charities or outside causes.

PO’s are nonfederal entities and therefore they must adhere to State laws:

AFI 34-223 10.20.3. Raffles must comply with State and local laws of the jurisdiction in which the installation is located and comply with any applicable requirements of such laws, (e.g., securing required licenses or permits). In locations outside the U.S., raffles must be held in accordance with host nation laws and applicable Status of Forces Agreements.

Florida State Law (Florida Statute 849.0935) categorizes raffles as “drawings by chance” and allows only nonprofit organizations that have federal 501(c)(3) status from the IRS to conduct them, provided they comply with strict disclosure laws. PO’s must apply for and be awarded nonprofit status from the IRS. If you are not a nonprofit, you will violate business raffle laws in Florida. Fundraisers may not charge for raffle tickets, although they may suggest a minimum donation. In addition, Florida rules do not allow them to cancel the raffle or refuse to give out the advertised prizes.

There are many things that can cause your fundraiser request or PO application to be denied. Though the list is not all inclusive, it does provide a list of items that the legal office specifically looks for when reviewing private organizations.

• Using rank or official government title on documents.
• Sending your documents directly to legal prior to coordination with 96 FSS/FSR.
• Failure to have the proper insurance or waiver
• Use of official Department of Defense organizational seals, logos or insignias on the private organization’s correspondence (including in the name of your Private Org)
• Failure to or improperly display the disclaimer on all print and electronic media: “THIS IS A PRIVATE ORGANIZATION. IT IS NOT PART OF DEPARTMENT OF DEFENSE OR ANY OF ITS COMPONENTS AND IT HAS NO GOVERNMENTAL STATUS,”
• Not adapting and editing the constitution and bylaws so that they pertain specifically to the private organization, i.e. leaving fields blank, or removing paragraphs altogether. Many of the sections in our templates are required by legal to be addressed, so we highly encourage use of the templates provided.

Registering as a Private Organization is not the same as registering as a 501(c) non-profit organization with the IRS. Becoming one does not automatically make you the other, the registration processes are separate and 96 FSS/FSR does not register you with the IRS nor assist in the process. If you wish to become a non-profit organization to obtain tax-exempt status, you must register directly with the IRS.