Tuesday, June 30, 2009

Sales Taxes and Fundraisers

Question: If we are selling fundraiser items do we have to deal w/ sales tax?

Answer: You will not be required to collect sales tax for non-recurring fundraisers. However, depending upon the circumstances you may need to provide them with a statement validating the charitable portion of the purchase, which is the amount that exceeds its fair market value. If you are selling items on an ongoing or recurring basis then you may have to deal with sales tax collection and reporting. This requirement differs by state.

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