Does Your Fundraiser Need a Tax Exempt Number?

[Trish1953]

My daughter broke her ankle in two places and had surgery. She is doing well but they had to screw a ligament to the bone, which will require a second surgery. Since they don't make much and the hospital wanted $6000 up front for the surgery, I am thinking of doing a fundraiser for her. Any flyer or postcard ideas? Do I suggest they buy an item and add an extra amount ($5.00+) with their order. She had been scheduled to do a Jimmy Buffett in Margaritaville party with me right before this happened, so I know she'd like the hostess benefits I could give her. Any suggestions welcome.

 

[its_me_susan]

My daughter broke her ankle in two places and had surgery. She is doing well but they had to screw a ligament to the bone, which will require a second surgery. Since they don't make much and the hospital wanted $6000 up front for the surgery, I am thinking of doing a fundraiser for her. Any flyer or postcard ideas? Do I suggest they buy an item and add an extra amount ($5.00+) with their order. She had been scheduled to do a Jimmy Buffett in Margaritaville party with me right before this happened, so I know she'd like the hostess benefits I could give her. Any suggestions welcome.

Hi Trish ~ The way PC fundraiser work is you would distribute catalogs and share your PC "website party" with everyone you know and let them know the cause and that PC will donate 10-15% of sales towards your cause, plus $3 a booking too. PC doesn't inflate costs for fundraisers. Do you have a rep you are working with? I would be happy to help you set this up. My email is [email protected] I hope your daughter is doing alright!!! I'm sure there are numerous people at her school and in your community who would be happy to help this way!

 

[ChefBeckyD]

Fundraiser problem....Trish,
The one thing that will be a sticking point is that you can't do a fundraiser for an individual - it has to be for a recognized group. I did a fundraiser for a girl in my church who was raising money for a Missions Trip - but the fundraiser had to be under the name of my church, and the funds were sent to my church, not to the individual. I also have one in the works for a person who was paralyzed in an accident, and family is doing a fundraiser to help cover costs of his PT - that is also being done through an organization, as it can't be in an individual's name.
The other thing is - if you are doing a fundraiser, there are no hostess benefits - the $ donated is in lieu of any host benefits!
Hope this helps!

 

[Happy Mom]

Trish,

It is easy to set up an non-profit organization. Go to your local bank, explain why you want to do the fundraiser, and ask for their help. You could advertise it in the newspaper,too.

We have friends whose grandchild was born with CP, and they set up a foundation and have annual fund raising events to pay for is special needs.

Then you can make out the check to the organization. They would distribute, probably directly to the hospital or doctor, the money to pay the medical bills.

I am sure PC has this stipulation for tax purposes, and so that no one benefits under false pretenses..

 

[beepampered]

Organization?I was told that fundraisers would be written to anyone but now it has to be an organization? How would PC know? I have a fundraiser scheduled for someone adopting a child from overseas and don't really want to ask her to form a foundation just to get the money. BEE

 

[Shawnna]

it is my understanding that anyone can have a fundraiser as long as it is a legitimate project. I don't think it has to go through a group/organization. but, the best thing to do is contact the HO and ask. I have only had 1 fundraiser and it was through a college club. Let us know what you find out because my daughter is wanting to do a fundraiser to go into her vocal account so that when she is a Junior in high school and the vocal group goes to New York she will have money for expenses.

Shawnna

 

[its_me_susan]

it is my understanding that anyone can have a fundraiser as long as it is a legitimate project. I don't think it has to go through a group/organization. but, the best thing to do is contact the HO and ask. I have only had 1 fundraiser and it was through a college club. Let us know what you find out because my daughter is wanting to do a fundraiser to go into her vocal account so that when she is a Junior in high school and the vocal group goes to New York she will have money for expenses.

Shawnna

That's what I thought. My director told me anyone can raise funds, even a social group (book club wants to raise funds for trip to NYC for example)...

 

[DeeisPampered]

fundraiserI think what the confusion is in the word "organization".

ANYONE can do a fundraiser. However, if an orgainzation has a tax exempt number, then the customers will not have to pay tax on their purchases. That is where the organization word comes in. The are ususally the ones that have the tax exempt numbers.

If you want to do a fundraiser for a person, it if perfectly acceptable to do, but if you don't charge the tax, you will be paying it out of your own pocket.

God Bless Everyone,
Dee

 

[its_me_susan]

I think what the confusion is in the word "organization".

ANYONE can do a fundraiser. However, if an orgainzation has a tax exempt number, then the customers will not have to pay tax on their purchases. That is where the organization word comes in. The are ususally the ones that have the tax exempt numbers.

If you want to do a fundraiser for a person, it if perfectly acceptable to do, but if you don't charge the tax, you will be paying it out of your own pocket.

God Bless Everyone,
Dee

Dee, if you put a name in the organization part, it won't charge the tax? On PamperedPartner too?

Thanks for this information!

 

[DeeisPampered]

No that isn't right.

When you go into PP and ad a fundraiser, you will add each customers order just like a regular show. However, if it is a non-profit "organization" they will have a tax exempt number. You must have this number BEFORE you can click the tax exempt box on each customers order. If they don't have one, you MUST charge tax on each order.

A lot of people confuse "organization" to mean tax exempt and this is not the case. Any group of people can be an organization. But for them to be tax exempt, they HAVE to have the tax exempt number that you will send to HO before you transmit the show.

As for it being an individual, they would not have a tax exempt number unless they set up the appropriate organization/foundation as stated in the previous emails.

The key is to just find out if they have the tax exempt number or not.

God Bless Everyone,
Dee

 

[afshea]

add five dollars?I'm sorry about your daughters ankle, and I think it would be very appropriate to do a fund-raiser for her, HOWEVER, under NO circumstances should you ask people to add $5 (or whatever) to their orders. While most of the people there would presumably be family or friends, please consider that there may be some people who bring friends to this party. If I had never been to a PC party, and the consultant started asking for money..I would be very put off. Just my opinion...but I wouldn't do that.

 

[raquel914]

No that isn't right.

When you go into PP and ad a fundraiser, you will add each customers order just like a regular show. However, if it is a non-profit "organization" they will have a tax exempt number. You must have this number BEFORE you can click the tax exempt box on each customers order. If they don't have one, you MUST charge tax on each order.

A lot of people confuse "organization" to mean tax exempt and this is not the case. Any group of people can be an organization. But for them to be tax exempt, they HAVE to have the tax exempt number that you will send to HO before you transmit the show.

As for it being an individual, they would not have a tax exempt number unless they set up the appropriate organization/foundation as stated in the previous emails.

The key is to just find out if they have the tax exempt number or not.

God Bless Everyone,
Dee

Hi,
I just got off the phone with PC and as far as Tax exempt goes. If the organization you are doing the funraiser for is buying all the products for the organization themselves to use soley for the organization, then you can use their tax exempt ID number. But that is not the case when doing a PC fundraiser almost always...
When you do the funraiser the organization is selling product to customers so ALL customers must get taxed. There is no tax exempt for them (The customers) at all. The customers are not part of the organization they are just customers using these products in their home.So you should not be checking tax exempt for these customers.
This was very confusing for me and now I finally got it.
Hope this was helpful
Debbie