I am the Post Commander of a typical small-town VFW post in Michigan. Like many others across the nation, our Post has struggled with declining membership and almost non-existent funds. Now our Post is on the rise and we are working hard to update our building and assist more veterans and our community.

Our Post was greatly in need of a new floor so this summer we applied for and were approved for a $3,000 Home Depot Grant. Due to our large space, the grant didn’t cover all the costs of the floor so we decided to use Facebook and our non-profit status to start a floor fundraiser. Facebook had previously approved us to receive donations and added a “Donate” button to our page. Within 68 hours our fundraiser exceeded its goal of $3,200 by $240 at which point Facebook shut it down saying that there was a problem on their end with the on-boarding of our donation approval and that it would be resolved soon. Because we knew we had the funds coming, we went ahead and ordered the floor using our winter funds. Once the floor was installed, Facebook refunded all of the donations back to donors and informed us that we were ineligible to receive donations because we were a 501(c)(19). This of course left us scrambling to figure out how we would re-coop our winter funds. Luckily we have an amazing community and the original Facebook donors mailed their donations to us directly.

This is not what should have happened.

Currently to qualify for Facebook fundraising a charitable organization must by be a 501(c)(3) organization, be registered with the IRS, have a tax ID number and have a bank account registered with a licensed financial services institution.

The Veterans of Foreign Wars (VFW) along with other Veteran operated non-profits such as the American Legion and the Am Vets are classified as 501(c)(19), a separately created category for veterans' organizations

So what is the difference between a 501(c)(3) and a 501(c)(19)?

• 501(c)(3)’s are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency. None of its earnings may inure to any private shareholder or individual. In addition, it not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
• 501(c)(19), a veterans' organization, at least 75% of its members must be past or present members of the Armed Forces of the United States and substantially all of the other members must be cadets or spouses, widows, or widowers of past or present members of the Armed Forces of the United States. No part of its net earnings may inure to the benefit of any private shareholder or individual. The organization's organizing document must not provide that the assets of the organization may be distributed to members upon dissolution. A veterans' organization must also be organized and operated for the following additional purposes that are narrower than those for qualification for exemption under other non-profits; Furthering comradeship among persons who are or have been members of the Armed Forces; Honoring the memory of deceased veterans and aiding and comforting their survivors; Encouraging patriotism in their community; Aiding hospitalized, disabled and needy war veterans and their dependents; and Conducting programs for religious, charitable, scientific, literacy, or educational purposes.

As you can see, a 501(c)(19) meets all the same criteria as a 501(c)(3) but with added restrictions on how funds are allocated and who is operating the organization.

There is not a single person in my VFW Post that is paid for their time. We are a volunteer organization that is a pillar in our community and a life saver so some local veterans. We file our taxes every year in accordance with the IRS regulations for non-profit organizations.

There is no reason why Facebook should deny the fundraising and donation options to Veteran organizations that are in accordance with the 501(c)(19) rules and regulations. In a time when we are losing so many World War II and Vietnam Veterans, we should be lifting them up and opening opportunities instead of adding more red tape.

Facebook, please change your by-laws to accept and approve non-profit 501(c)(19) organizations for fundraising and donations and show your support of our nation’s heroes.