Sales tax on non exempt fundraisers?

[Brooke]

Good Morning All,

Need your thoughts on this

for normal tax exempt fundraiser I am thinking to offer 40% of sales.

now on sales taxed fundraisers what would your thoughts be.

Having a conflict here at home on this discussion

I was first thinking to offer 35% of sales to non exempt because of the tax burden.

Candles are $12.00 for 12.5 oz.

inorder to simplify tax collected candles have a base price of $11.32 x this by 6% sales tax = $12.00

that way the kids do not have to figure tax or mess with change.

here is the conflict

If exempt group makes 40% of $12.00 = $4.80 for group/ me $7.20

non exempt group makes :

40% of $11.32 = $4.53 for group/ me $6.79 tax= .68

Would you offer the same % profit for each group and eat most of the sale tax expense or ????

or just say everyone makes $4.50 each candle and forget the math confusion:bliss:

Lets here it LOL LOL

Brooke

[slow-burn]

I went thru this myself last year, and am getting ready to do it this year. I have did a few small fundraisers that were tax exempt, that is easy, lol! For the ones that are NOT tax exempt, it got a hair confusing. I offer a 50% profit, and they had to pay sales tax.

I hope I explain this correctly. From my understanding, you don't charge sales tax on the whole amount. For mine, the candles sold for 8.00, and they got 4.00 profit. They only had to pay taxes on the 4.00, cuz that is all that is coming to me. Then it was the organizations responsibility to turn in and pay sales tax if needed on the rest. So if it is 7% sales tax, then the group pays me 4.00 + .28 for 4.28. It then takes their profit down to 3.72 for each candle sold. The one I worked with in the past was fine with this, and the one that I am getting ready to do for the relay for life understands this also. They still come out ahead, but also deal with the taxes at the same time.

I hope this made sense.

[Brooke]

Slow burn

so confusing

I will get some pencil scratches down on paper LoL and look at my figures.

So I can finish these fundraiser information packets

Thanks for the help !!!

Brooke

[Brooke]

Sorry I didn't mean you are confusing.

I mean just the tax stuff altogether.

Brooke

[Brooke]

I have more information on sales tax for fundraisers if you are interested.

However this only applies to Indiana.

If you have a:

Not for profit organization they need to fill out the ST105 form providing their tax exempt # and you keep this form on file for future needs if audited. You can print this form off the Indiana department of Revenue site.

Now for the non exempt group:

Sales tax is collected on full gross sales price and handed over to the State

Sorry this stuff is confusing.

Didn't you know my state needs every dime they can get LOL

Anyway I am glad to know what I need to do here.

Not all states are the same.

Chow *getdown*

Brooke

[slow-burn]

So for Indiana, is the full gross sales, the whole amount the group sells for each candle, or only the amount paid to you? I don't see how you can pay taxes on 8.00 for each item sold, if the group is only paying you 4.00. At that point, here in Ohio, they have to claim their own income on the money that they kept.

I agree, it is very confusing. The one group that I did was for a non profit soccer team, but they did not have their exempt number. The group I am just starting is for a relay for life team. The American Cancer and Relay group will not give out their exempt number, so teams are not able to use it. It bites, but they do it this way cuz too many peeps were taking advantage of it. Hope everything works out for ya, and your fundraiser is great!

[Brooke]

Hi Slow Burn,

I ended up calling my State's Department of Revenue to find out how I need to handle these different groups.

For me in Indiana

If I have a non exempted group say AAU Basketball group they do not have a tax exempt # then total sales is taxed.

It was explained to me that it is like me hiring them to sell my candles.

There has to be a change in owner ship of the candles. The only way to do this is with the tax exempt Certificate form that must be filled out completely.

This is call Title Change. Woohooo to technical

I wish you the best of luck with your fundraisers too

Say you have a great State to live in for Craft suppliers

See you on the next thread

Brooke

Brooke