Understanding Sales Tax for Fundraisers: A Guide for Non-Profit Organizations

[pamperedchristine]

I'm doing a fundraiser now for a non-profit organization and someone asked why they had to pay sales tax! Home office is closed until tomorrow, but I figured that I'd ask here in case someone knew.

Should I have not charged sales tax? Ack! 300 packets went out already

 

[fruit76loop]

You are right!You need to charge sales tax. We used to have 2 different types of fundraisers-kitchen and catalog. In the catalog sales there were limited products that were available to purchase. And if the tax-exempt organization bought the products to re-sale then we didn't charge sales tax. But this was the only time we didn't charge sales tax.

HTH

 

[scottcooks]

Call HOHO may give you instructions to find their Tax ID number, enter it in Pampered Partner, then you can not pay sales tax. I've never done it, but have seen the EIN place in Pampered Partner

 

[pamper_the_chef]

Here is what I placed under another thread about fundraisers for non-profits:

There is a way to give non-profits tax free ~ when I lived in NC my director first did a show like this and then told me about it. She called home office and had them fax her a tax exempt document which we had the non profit fill out. We then sent/faxed that form back to home office so it would be on file. When you do the fundraiser the guests need to pay by check or cash and make it out to the non-profit. The non-profit writes the consultant a check for the total that is debited from her account. This shows that the non profit bought the products. There are +/- to doing it this way - the guests buy more because they don't have to pay shipping or tax, there is only one shipping charge because the non-profit buys the products on one order (basically a show tally) so the consultant can pick up the shipping!, this also means you have to go back into Pampered Partner and key in individual orders for the receipts, but you can have a very successful fundraiser like this!

 

[KennethandTiffany]

PP Individual receipts?If you submit one big order, you can still go in after the fact and make individual receipts? Do those count since the original purchaser in PC's eyes is the organization? I guess my main concern is if they will honor the warranty that way. Do you just go in and edit the show after you submit it?

 

[pamper_the_chef]

Yes, go in and edit the show to do individual orders. I will check with my Director on what HO told her about the warranty because I am certain she would not do it if the warranty was void. She may have done individual receipts using the preschools name - I am not sure but will find out! Thanks.

 

[Sk8Mom209]

?I was told that the only way to be tax-free was if the organization, was purchasing products to be used by the organization, ie non-profit figure skating club, purchases products on their fundraising show, to be used by the club in their snack bar.