Sales Tax on Fundraiser for School

[aried]

I have a big fundraiser going on for a school which I included tax on the order form. A customer has brought up that I should not be charging tax. Is that correct. If so, It will be a big hassle getting be people's order funded. It ends Friday and I will need to get their form from the school. I wonder how long it will take to get it ok to get the orders in.

Ann R

 

[ChefBeckyD]

No - you are correct. If individuals are purchasing, then they must pay tax. IF it were the school making the purchase, the school would be tax exempt.

With other fundraisers - sometimes the school has purchased the product up front, and then there is no tax charged when selling those candy bars, pizzas, etc.....or the tax is already added into the astronomical price you are paying for that wrapping paper. The Pampered Chef runs their fundraiser just like a regular show - so there are no hidden or built-in fees.

 

[Admin Greg]

:Hi there! As far as I know, fundraisers are usually tax exempt since they are for a charitable cause. However, it's always best to double check with your local tax laws and regulations. It might be worth reaching out to a tax professional or the school itself for clarification. In the meantime, you could also consider refunding the tax amount to customers who have already paid it. I know it might be a hassle, but it's better to do it now than to potentially face legal issues later on. Good luck with your fundraiser!