It is generally anywhere from 30-50% of the sales. You are counting on high volume of sales to make your money. Taxes it depends upon what state you live in as to what the laws are. Some organizations are tax exempt in certain states. This site might help you. It is listed by state. http://www.fundraisetaxlaw.org/states.html This is MI's law: "When sales are made by schools and other nonprofit organizations, tax must be remitted on taxable sales. To help schools and other nonprofit organizations with their responsibilities when conducting fun-raising sales, the Department gives them the choice of two ways to pay the tax. The organization may register with the Department to collect and remit tax that is due, or it may remit tax directly to the supplier. If the organization chooses to remit tax to the Department, it must become registered with a sales tax license, and present an exemption certificate to the supplier. If the organization chooses instead to pay the tax to the supplier, tax must be paid based on the retail selling price of the items." Sorry this happened to you. On this fundraiser I suggest you will have to take the loss. It is a lesson learned and you don't want a bad reputation. Next fundraiser you can adjust your contract to be clearer and adjust for profits.