Friday, July 18, 2008

Update on Creating Fundraising Account

Hi everyone,
I know so many of you have been inquiring about ways to set up paypal accounts or other accounts for the money that will be raised for Cy! I have investigated how to open an account and here is the scoop.

No individual should open a checking or savings account in their name for funds to go into. I had thought about doing that because it would make things easy for a paypal account to be set up but it turns out it it's not a good idea. Myself or any individual who thought about doing that could open it easily but, if audited soon or later in life could face many problems with the IRS and it would be a paperwork nightmare. A helpful fellow at Wachovia told me this information today. He also said the money should not go directly to Cy's parents because they could also face the possibility of major auditing issues.

So, my friend at Wachovia recommended this course of action (which has been done many times through their bank since they are in such close proximity to Duke). A non-profit can take the lead on opening a trust checking account, which will be for Cy's medical bills. The non-profit has to provide their "articles of incorporation" and their tax id number. Cy's social security number and a copy of his driver's license has to be provided also. The selected non-profit, hopefully Cy's parents' church (yep it can be a church), will then name a custodian from within the church (usually the church treasurer) to look over the account and funds which will help to alleviate the burden of the incredible medical bills.

I talked to Cy's parents' pastor today about this when I went to the hospital. He is speaking with the church treasurer on Monday. Keep your fingers crossed that this works out. The pastor is going to call me on Monday to let me know if they are going to proceed. This would be the best way for the fund raising account to be set up. If it does get set up I can get the account information so we can set up a paypal account to link directly to the main trust checking account.

I'll keep you posted on what I hear.

1 comment:

katherine w said...

KP, thanks for doing all the footwork. xoxo