Maximizing Fundraising Profits: Commission Rates and Sales Thresholds Explained

[gailz2]

Does anyone know if fundraising commission rates are set at 15%, then 17% if sales are above $15,000, go up further as do other sales. For instance, if monthly sales are above $750 then $1250 they continue to rise. Does the fundraising amount get added into this and rise also?

I've read on here about the benefits of submitting it as a cooking show and using free products for raffles, etc., but a friend of mine in a nearby town didn't do this, not realizing the commission rate was different at all.

 

[BethCooks4U]

Does anyone know if fundraising commission rates are set at 15%, then 17% if sales are above $15,000, go up further as do other sales. For instance, if monthly sales are above $750 then $1250 they continue to rise. Does the fundraising amount get added into this and rise also?

I've read on here about the benefits of submitting it as a cooking show and using free products for raffles, etc., but a friend of mine in a nearby town didn't do this, not realizing the commission rate was different at all.

No they don't. You get 15% until your career sales are at $15000, then 17%.

But the fundraiser sales do count to raise the total for commission on all other sales. If it's a fundraiser it should be called a fundraiser. The only time I would do it as a cooking show is if it's a group that has a kitchen and wants to go a "kitchen shower" - get new things for their kitchen. If it's a group that is looking to raise money it needs to be submitted as a fundraiser.

 

[gailz2]

So if her fundraiser was $3000, and other monthly sales were $600, does she get the next percentage step increase?

 

[legacypc46]

You can conduct a fundraiser, donate from your personal commission, and it is still a fundraiser. If you donate from your commission, you still need to claim that as income on your taxes. If it is a bona fide tax-exempt charity, get a receipt and you can write it off. (How you choose to handle the free products issue is something you decide. I know not everyone agrees on this, but that is why we are independent. )

I think someone asked earlier about whether this could be considered a 'consultant gift' and deductable that way. I am not a tax accountant, but I have a really good one who is calls things pretty straight-forward. A key term involving deductions is 'reasonable'. I don't think this would pass the test...but this isn't my expertise.

 

[BethCooks4U]

So if her fundraiser was $3000, and other monthly sales were $600, does she get the next percentage step increase?

Her $600 in sales would be commissionable at the $2500 level. If her fr was $3000 and she had another $1000 in show sales the $1000 would be paid at the $4000 level.