Does Your Fundraiser Need a Tax Exempt Number?

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Discussion Overview

This thread centers around the topic of organizing fundraisers, particularly in the context of individual needs versus organizational requirements. Participants share personal experiences and insights regarding the logistics and regulations associated with fundraising efforts, especially in relation to tax-exempt status.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Technical explanation

Main Points Raised

  • One participant, identifying as a consultant, discusses the potential for a fundraiser to support her daughter’s medical expenses and seeks flyer ideas.
  • Another participant shares their experience with fundraisers, explaining that they typically need to be organized under a recognized group to comply with regulations.
  • Several users mention that while anyone can organize a fundraiser, tax-exempt status is generally associated with recognized organizations, which can affect tax implications for customers.
  • One participant expresses concern about asking customers to add extra amounts to their orders for a personal cause, suggesting it may be off-putting to some attendees.
  • Another participant notes that fundraisers can be set up easily through local banks and emphasizes the importance of transparency in fundraising efforts.

Areas of Agreement / Disagreement

Views differ on whether fundraisers can be conducted for individuals without organizational backing. Some participants assert that fundraisers must be associated with a recognized group, while others believe individuals can also initiate fundraisers as long as they are legitimate projects.

Contextual Notes

Participants share a variety of personal experiences related to fundraising, including specific examples of past fundraisers and the challenges faced in navigating the rules surrounding them.

Who May Find This Useful

Consultants considering organizing fundraisers for personal causes or community projects may find the shared experiences and insights relevant to their planning.

Trish1953
Silver Member
Messages
494
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.
 
Trish1953 said:
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!
 
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!
 
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..
 
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
 
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
 
Shawnna said:
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)...
 
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
 
DeeisPampered said:
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!
 
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
 
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.
 
DeeisPampered said:
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
 

Frequently Asked Questions

Does my fundraiser need a tax-exempt number?

It depends on the nature of your fundraiser. If your organization is a registered nonprofit and you are collecting donations or selling items to raise funds, having a tax-exempt number can help you avoid sales tax on purchases. However, if you are not a registered nonprofit, you may not need one.

How do I obtain a tax-exempt number for my fundraiser?

To obtain a tax-exempt number, you typically need to apply through your state’s tax authority. This process usually involves submitting documentation that proves your organization’s nonprofit status. Check with your local government for specific requirements and forms needed.

Will Pampered Chef accept my tax-exempt number for fundraising?

Yes, Pampered Chef accepts tax-exempt numbers for fundraisers. If your organization has a valid tax-exempt status, you can provide that number when placing your order to ensure you are not charged sales tax on your purchases.

What if my organization doesn’t have a tax-exempt number?

If your organization does not have a tax-exempt number, you can still conduct a fundraiser with Pampered Chef. However, you will be responsible for paying sales tax on your purchases. Consider applying for tax-exempt status if you plan to hold fundraisers regularly.

Can individuals use a tax-exempt number for their personal fundraisers?

No, tax-exempt numbers are typically issued to organizations, not individuals. If you are raising funds as an individual, you will not be able to use a tax-exempt number, and sales tax will apply to your purchases.

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