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Pampered Chef: Fundraiser Looking for help

  1. kcjodih

    kcjodih Legacy Member Gold Member

    3,432
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    for a fundraiser for my children's school. I'd like to present to the PTA and principal the idea of having a PC fundraiser. The school has 500 children. We are all SO tired of wrapping paper, cookie dough and chocolate bars so I thought this would be a great idea. 500 children x even only $10 each in orders is $5000. I would put in 5% commission so they have 20% in profits which is $1000. We did chocolate bars last fall and didn't even break even because we had so many OPENED cases of chocolate bars that we couldn't fully sell!

    My question is what on earth do I do about catelogs? Do I order $500. They're like $48 for 100 here in Canada. I'd be willing to do that if I thought the sales amount above was feasible. ( I don't have a website yet and stupidly ordered just a while ago new business cards, address labels and magnets so I want to use those up before getting a site - then can order the next round of supplies with website info added.) I figured if even 60% participated that would still be $3000 in sales. And of course alot of PC diehard fans would order more than $10. Such awesome exposure too! And this school does not have another PC consultant. Yippee!

    Also my concern was the 4.75 in shipping. If people found PC too expensive (which people who aren't familiar with us or are used to buying a $4 chocolate bar could easily think so) how can I possibly justify a $10 product costing another $4.75 + tax?

    I'd have all orders shipped to me since I live 2 minutes from the school. Sort them up and drop them in. So no extra work for them and no extra inventory such as cases and cases of chocolate bars sitting around (which would be a big selling feature)

    What have others done with large fundraisers like this?

    Anyone?

    Thanks so much for any help you can give. I need to get something together to present next week.
     
    Aug 17, 2005
    #1
  2. chefjill

    chefjill Member

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    Jodi...

    I would present it to your PTA by way of doing an Open House. I'm on the PTA at our school and I think that would work the best. You wouldn't have to order 500 catalogs (saving you tons of $$). You could set it up for about 2-3 hours, have your catalogs in binders & let the parents shop. I usually put 2-3 catalogs in binders with plastic pages when I do fairs/festivals. This way, people can look through the catalog if they want to purchase something, and I can have them fill out the prize drawing slip if they want a catalog.

    Doing it open house style will give the parents who aren't familiar with PC a chance to see the products up close & personal. I think your sales will be higher that way. Plus, they won't have to deal with extra orders & additional paperwork.

    Hope that helps!!

    Jill Wright
    Director, Benicia, CA
    chefjill@sbcglobal.net
    www.pamperedchef.biz/jillscooking
     
    Aug 17, 2005
    #2
  3. Marg

    Marg Advanced Member

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    And this is cheating just a little bit, but you could "group" 5 orders together and charge each person $0.95 for shipping. :D
     
    Aug 17, 2005
    #3
  4. kcjodih

    kcjodih Legacy Member Gold Member

    3,432
    2
    Marg,

    I was thinking the same sort of thing. I was also leaning towards the catelog route and sending home with the students because that's the way it's normally done with this catelog we get filled with wrapping paper, notepaper, etc. I know it's a huge expense but the potential is awesome! Not to mention the exposure. Of course, if it goes well, I could get repeat business/customers and the school would be willing to do it again next year. Then tend to stick with things for 2 or 3 years and are definitely looking for something new.

    My other concern was bounced checks. I was thinking of handing out the catelogs with order forms and giving it two weeks start to finish. Input orders into PP as they come in, and cash cheques as they come in as well. This way I have a window to be notified if any cheques bounce before the order is submitted or at least before it arrives. Any opinions ladies?
     
    Aug 17, 2005
    #4
  5. Shawnna

    Shawnna Senior Member Gold Member

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    If I was doing this with a school I would let the school collect the money and write me a check. That is how schools do that where I live. All checks are made out to the school for any type of fundraiser and the school puts the money in the proper organization account and writes the checks for the expense out of their checking account. They will probably have to do a PO number.

    Another thing about schools is that they are tax exempt, so you will need a copy of their tax exempt letter to send with your show. This way they don't have to charge sales tax.
     
    Aug 17, 2005
    #5
  6. kcjodih

    kcjodih Legacy Member Gold Member

    3,432
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    Wow Shawna! Thanks, I didn't know any of that. I'll have to check and see if they're tax exempt here in Ontario. I appreciate the info.
     
    Aug 17, 2005
    #6
  7. DebbieSM

    DebbieSM Member

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    The customers do have to pay sales tax. The only way the sales tax is not charged is if it is something the school is purchasing for the school. I am trying to do something very similar at my daughters school. Make sure that if you do a fundraiser where the children take a catalog home, do before Christmas. Spring fundraisers do not do as well as Fall fundraisers. :D
     
    Aug 17, 2005
    #7
  8. kcjodih

    kcjodih Legacy Member Gold Member

    3,432
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    Another concern I had was students carrying home stoneware (if I'm lucky enough to get stoneware orders from something like this). I'm thinking that maybe I could organize something where orders may be picked up between _ and _ on such and such a day. Yay or nay?
     
    Aug 17, 2005
    #8
  9. DebbieSM

    DebbieSM Member

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    That is what I am going to suggest to the school because if people do purchase items that may break easily, I'm sure they would not want their children breaking them on the way home. Definately a yay!! :D
     
    Aug 17, 2005
    #9
  10. Sk8Mom209

    Sk8Mom209 Advanced Member Gold Member

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    How about this

    Choose several of our popular items (round stone, bar pan, food chopper, garlic press, quik stir pitcher, etc.), create a flyer and increase the price for each items to include tax and shipping. 500 Flyers would be cheaper than catalogs. Definitely have all checks payable to the school - it's easier for you and easier for the customer to claim the tax deduction.

    Just an idea.
     
    Aug 17, 2005
    #10
  11. DebbieSM

    DebbieSM Member

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    Are you guys sure about the whole tax deduction thing. I don't think the customer can be tax exempt. I just don't want her to be misled. Before you tell the PTA anything, I would check on the tax deduction thing. You don't want to be stuck with that kind of cost.
     
    Aug 17, 2005
    #11
  12. Sk8Mom209

    Sk8Mom209 Advanced Member Gold Member

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    Customers pay tax

    The customer's need to pay taxes, but any order purchased by the school for the school are exempt. I think there is a reference to this in the fundraiser flyer or recipe for success.
     
    Aug 17, 2005
    #12
  13. Happy Mom

    Happy Mom Member

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    You could have the students sell gift certificates instead of products. It is much easier for the kids since there's no s/h or tax on the certificates. They are mailed directly to the customer by the Home Office. The kids just take the orders and collect the money.

    One local private school, sent home flyers sponsored by the PTO. The school invited parents and their guests to a kitchen show at school. A demo was given and products were showcased. The people who went were interested in kitchen equipment so you knew they would buy the products.

    About the tax issue, customers have to pay the state tax on products. The school exemption only applies to items used in the school, not things sold by the students. Public schools use PO's and are issued a tax exempt ID. Teachers, parents, etc. who buy things for the school or from the school are not exempt from the tax.
     
    Aug 17, 2005
    #13
  14. dianevill

    dianevill Senior Member Gold Member

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    Gift Certificates

    I think I would stay away from the gift certificates. The customers would have to pay direct shipping when they place the order, and my guess would be that it'll cost a lot for each order! Also, as a consultant, you lose control over what your customers are ordering. I like knowing what each customer has so that when a special comes up (eg. September Stoneware) I can contact him/her.

    As for the pick up, I definitely suggest having a pick up time. Most schools won't allow a child to carry home a Chef's Knife in his/her backpack. ;)

    Good luck - I hope you do well!

    Diane
     
    Aug 17, 2005
    #14
  15. Shawnna

    Shawnna Senior Member Gold Member

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    You will just have to check on the tax exemp thing. I order things from kids for school fundraisers all the time...blue and gold sausage, cookie dough, wrapping paper, etc...and I have never payed any tax nor was there any place on the order form to add tax. Maybe is was included in the price of the item. I had a college organization do a product fundraiser and they didn't charge tax and I sent the college's tax exempt certificate to the Home Office and the college payed me with a college check.

    Shawnna
     
    Aug 17, 2005
    #15
  16. Sk8Mom209

    Sk8Mom209 Advanced Member Gold Member

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    Tax-Exempt

    When my daughter did fund raisers for cheerleading, the tax and shipping was included in the prize of the cookie dough, candy, etc. It did not show on the order form, but it was included.

    In Policies and Procedures of the Recipe for Success it states and I quote:

    TAX-EXEMPT ORDERS

    If a sales tax-exempt organization is purchasing products, follow these steps
    • List the organizations' tax exempt certification or letter issued by the State Taxing Authority, confirming their tax-exempt status. The tax-exempt number alone is not sufficient.
    • Write 0% and $0.00 in the sales tax blank
    • Apply the direct shipping charges as indicated on the back of the sales receipt.

    Note: for fund-raisers, individual members of an organization may not claim tax-exempt status. All individuals must pay sales tax.

    This paragraph is on the top of page F-14. I hope this clears up this issue.
     
    Aug 17, 2005
    #16
  17. PamperedEsther

    PamperedEsther Member

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    Gst

    GST is something an organization (like a school) can get back when they file their year end. They need the GST # from Head office, but we still have to charge them GST upfront. As far as I know, the only way we can not charge PST in Ontario is if the order is from a reservation, otherwise it needs to be charged up front & they will get a rebate from the government.

    Esther
     
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