What percentage of the first funds collected may an organization retain?

The correct answer indicates that an organization may retain 10% of the first funds collected. This provision is established to ensure a balance between allowing organizations to cover initial operational costs while also ensuring that a significant portion of the funds collected is directed toward the intended purpose, such as fulfilling the final wishes of the deceased or supporting charitable missions.

The retention percentage is designed to reflect a reasonable operational overhead, which is vital for sustainability while not unduly detracting from the primary goals of the fundraising efforts. Committees or regulatory bodies often set these percentages based on industry standards or to promote transparency and accountability among organizations handling such funds.

Understanding this percentage is crucial for anyone involved in funeral services or related fields, as it ensures compliance with state laws and ethical fundraising practices.