Hi Everyone!I'm Doing a Fundraiser for a Non-Profit Organization

[MissKris]

Hi everyone!

I'm doing a fundraiser for a non-profit organization that has a tax id number. The chairwoman told me last night that when they had an Avon fundraiser a few years ago, no one who ordered was charged sales tax on their orders because of their non-profit status. Does this hold true for our fundraisers, too? If so, where do I enter that on PPP??

Thanks!

 

[chefann]

No, that doesn't hold true for our FR's, because the individuals are purchasing the products, not the organization. And the individuals do not have tax-exempt status.

 

[MissKris]

Thank you Ann...I'm really getting a hard time from this woman. She's insistent upon everyone ordering being tax-exempt. I know I'm going to end up getting screwed and paying everyone's taxes. I don't know what to do. Here is what she said:

"St. Mary’s Catholic Women’s Club is a qualified non-profit organization with a tax ID. Since the fundraiser is in the name of the CWC and the people who make the purchases are doing so to donate money to the CWC for a fundraiser, I don’t see a problem. As long as Pampered Chef has a copy of the tax-exempt certificate, I believe they are covered for their part of it. I’ll get you the certificate and then you can have it in hand.

Now that I think about this, what we might have to do to get this to work is to have people make their checks payable to the CWC and then have one CWC check made out to you."

She just won't accept that it doesn't work that way. Someone help me please!!! :-(

 

[chefann]

I think you might have to call HO and see if you can get someone to send you a letter restating the policy that you can give to her. There used to be something about entering tax-exempt IDs for fundraisers, but I think it was the old-style cookbook FR's from HO (because in that case, the organization bought them, and resold them to members).

 

[quiverfull7]

Have you called HO? I'm not saying Anne is n't right cuz she always is but maybe they have some kind of official statement to make. Anne's makes perfect sense to me but some people need more and I'm sure since Anne has already been through this... that HO has heard the question before. I am very interested because I just had someone ask last night about a fundraiser for her church.

 

[quiverfull7]

HA! SEE... Anne is so smart!

 

[chefann]

Stop! You're gonna give me a big head.(Can't wait to meet you in Cinci, Diane!)

 

[MissKris]

Grrr...she's just not going to take no for an answer. I got the following email.

"Actually, I’m glad you sent the documentation because the way I read it is very clear: “There is no tax exempt status for an individual”. And that is why they would not apply tax exempt status to our individually submitted orders. That would lead me to believe that they acknowledge tax exempt status for an organization, so I think the CWC would qualify under the Pampered Chef terms (if we wrote one check from the CWC).

Also, the Pampered Chef is not the “guest”, so the sentence that reads, “All guest sales must include sales tax” is correct and we would not be violating that, if the order is paid with a CWC check."

I just ended up saying that I didn't know how to further explain it, so if it's that much of a problem for people to pay taxes, I will pay their taxes and eat my losses. It probably came across rudely, but I'm at my wit's end. I though that this was going to be a nice, profitable fundraiser to really help get me started, but it's just starting to turn into a nightmare. Some people just always need to be right, don't they...

 

[janetupnorth]

Grrr...she's just not going to take no for an answer. I got the following email.

"Actually, I’m glad you sent the documentation because the way I read it is very clear: “There is no tax exempt status for an individual”. And that is why they would not apply tax exempt status to our individually submitted orders. That would lead me to believe that they acknowledge tax exempt status for an organization, so I think the CWC would qualify under the Pampered Chef terms (if we wrote one check from the CWC).

Also, the Pampered Chef is not the “guest”, so the sentence that reads, “All guest sales must include sales tax” is correct and we would not be violating that, if the order is paid with a CWC check."

I just ended up saying that I didn't know how to further explain it, so if it's that much of a problem for people to pay taxes, I will pay their taxes and eat my losses. It probably came across rudely, but I'm at my wit's end. I though that this was going to be a nice, profitable fundraiser to really help get me started, but it's just starting to turn into a nightmare. Some people just always need to be right, don't they...

You would have to enter every order under an organization and PC has separate rules for organizational purposes.

It would be best if you could somehow get her on a 3-way call with HO and speak to a supervisor. This lady has her facts screwed up. They cannot have individuals make tax-free purchases and if Avon did, they did something around how it should work.

I am a member of a church, fire department, etc. and I CANNOT buy items for personal use (even if some money goes to the organization) and get tax exempt status.

The only way they could use tax exempt status is if ALL ITEMS BOUGHT went 100% to the organization.

 

[chefann]

Will this help?

Actually, I’m glad you sent the documentation because the way I read it is very clear: “There is no tax exempt status for an individual”. And that is why they would not apply tax exempt status to our individually submitted orders. That would lead me to believe that they acknowledge tax exempt status for an organization, so I think the CWC would qualify under the Pampered Chef terms (if we wrote one check from the CWC).

HO will NOT accept a check from a host/guest. They will only accept checks from consultants.

Also, the Pampered Chef is not the “guest”, so the sentence that reads, “All guest sales must include sales tax” is correct and we would not be violating that, if the order is paid with a CWC check.

She doesn't understand the concept that the people who will be ordering on the fundraiser are guests, and must therefore include sales tax. Additionally, all guests will have to pay for their own orders, in order to have warranty information. If the organization were to pay for everything, it would have to go in as one big order. (OK- that's stretching the truth a little, but it's something you can tell her.)I really think you need to call HO and get something in writing on company letterhead for this woman. Or even ask if a supervisor can speak to her directly. You shouldn't have to give up your commission (by paying the sales tax) because the chairperson doesn't understand the rules.

 

[cmdtrgd]

And shipping cost is another issue as is ordering more than 50 of one item. You need to do a 3-way call with HO and this lady! Set it up first with HO and then call her and get her to talk to the HO rep. Make sure you have a supervisor so s/he doesn't have to keep asking for clarification.

 

[quiverfull7]

Stop! You're gonna give me a big head.

(Can't wait to meet you in Cinci, Diane!)

I am SO looking forward to Leadership! I got my hotel confirmation
today and they had me leaving a day early ... sigh... I emailed them
so I hope they get it corrected.
We are coming in on Wed and hopefully leaving on Sunday...

 

[quiverfull7]

opps... the lease I can do is apologize for the hijack... I am sorry!
now back to your regularly scheduled topic!

 

[janetupnorth]

Would it be evil to just tell her Avon violated the law???

 

[chefann]

Would it be evil to just tell her Avon violated the law???

<giggle> I was thinking that, too.

 

[MissKris]

Haha...thank you all for your ideas. I have brought my director into the email conversation, so we'll see where it goes from there. If that doesn't get me anywhere, then I will definitely have to get her on a 3-way with HO. I think that she is starting to feel badly after I said that I would pay the sales tax. I was hoping to get that reaction. It's only 5% for goodness sake! I've known this woman for years and I've never known her to be so cheap! She also wanted me to give people the option of consolidating their orders so everyone wouldn't have to pay the $4.00 shipping charge.

 

[quiverfull7]

Does she realize that what she is attempting to do is abusing their taxexempt status? The Avon people should not have allowed it either.

 

[pamperedlinda]

I hope this turns out to be a really great fundraiser considering all of the heartache it has already caused you!

 

[cmdtrgd]

If she doesn't let you do the orders the way they are LEGALLY supposed to be (ie. taxed and one person per order), then bless and release. It isn't worth your time and money and ethics to let her get away with this. As for combining orders, I assume you love the company you work with (PC) and would not like to hurt them. By combining orders you are doing just that. Plus, it makes it so our shipping charges will go up even faster! $4 shipping for an unlimited order?!? You can't beat that!!! Who would ship a piece of stoneware for just $4?

 

[MissKris]

I won! She's finally backed down now that she received the email from my director! Yippee! Thank you guys for talking me through this...you are all the best.

 

[chefann]

Yay!Sometimes you just need to know that it's OK to stand up for what's right, and know that other people are behind you. Don't let her push you around on other stuff!

 

[pamperedlinda]

Good for you!

 

[redsoxgirl]

Good job!
I've worked in a call center many times and a lot of times they just want to hear it from someone who they feel is higher than you (your director in this case). Even if it's the same exact info, they want to hear it from someone else.

 

[nikiopc2005]

Can anyone help me with a Fundraiser Kick off show that I have on Friday. They expect about 100 people in attendance and I need help with what to do and what not too do, etc??? Thanks

 

[MissKris]

Ok, well the fundraiser was Thursday night, and the sales were almost $1900, so I guess it was kind of worth the hassle.

 

[Cassie1037]

Glad to hear it worked itself out, and was worth it. Way to keep your cool, I can see a situation like that taking a downward spiral quickly. You handled it nicely, I believe.