You can hold a fundraiser for the business -- but you must be absolutely transparent about the purpose of the fundraiser. You will also need to let people know that their "donations" are not tax-deductible.
Without the not-for-profit status in place, you're a for-profit company and the rules for charitable deductions do not apply. You might be better served working with a marketing professional who might be able to find you appropriate corporate sponsorship or advertising revenues for the magazine.
Nina L. Kaufman is an award-winning business attorney, author and speaker. For more than 15 years, she has successfully navigated thousands of small businesses through the legal hurdles they face in starting and running their companies. Under her
AskTheBusinessLawyer.com brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and
LexAppeal weekly ezine.
