Who Pays the Taxes on Fundraiser?

[nycchef]

Someone asked me the other day if her organization will have to pay the taxes on a fundraiser?!?! Does anyone know the answer to this??

 

[NooraK]

I would believe that the funds they receive through the fundraiser would be treated like any other donation they receive. They should consult their tax professional on the details of how that works.

 

[chefann]

Do you mean the sales tax on the orders? Those are paid by the purchasers, just like on a regular show.

 

[nycchef]

I guess she meant, is there any taxes that the actual organization receiving the money will need to pay.

 

[Wildfire]

Hi there! As a Pampered Chef consultant, I am happy to help answer your question. According to the IRS, nonprofit organizations are typically exempt from paying taxes on fundraisers as long as the funds raised are used for charitable purposes. However, it's always best to consult with a tax professional for specific details regarding your organization's situation. I hope this helps!