Sales Tax on Fundraisers for Tax Exempt Agencies

[maryskitchen]

I am a new consultant and doing my first fundraiser. It is for my mother's church. Do church groups and other tax exempt agencies pay sales tax? If not, what do I need to do to make sure the company does not charge them?

 

[PamperedchefDaly]

Sales tax laws vary from state to state. The best thing to do is contact your state sales tax department. You can tell them what you are doing and where. If it is tax exempt, they will give you the information that is needed.

 

[esavvymom]

Or call HO. I would expect the financial department to know how to handle it for this specific thing. I would bet it would confuse the state govt dept.

 

[Sheila]

The customers are not tax exempt, only the organization. The chairperson's 60% item doesn't fall under the organization's tax exempt status either. PC does not withhold taxes from the fundraiser's check. So under a normal fundraiser, the tax exempt status of the organization is not an issue for you.The only way that the tax exempt status would apply is if the organization itself is making a purchase from PC. If that's the case, contact PC for guidance.

 

[pclinskie]

Sheila is correct! I was just going to post it. I found out the hard way. customers are not tax exempt. only if the church itself is purchasing items.
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[maryskitchen]

Great! That answers my question. Thanks so much!