Fundraiser Questions

[GermantownCandles]

I just have a few questions to those of you who do fundraisers.

When an organization sells candles for a fund raiser for say $15 each, and if you were splitting with them 50/50, when the fund raiser is over, say they sold 100 candles. Would I claim $1500 in gross sales? Or do I claim just the $750 on my side of the deal?

Also, what do you feel is the best way to market yourself to bring in more groups for fundraisers? I thought about putting together a few candles, and mailing them off to local churches and schools with all of my fund raiser information.

I have also attached a copy of my fund raiser brochure I put together, it's pretty tentative so it's subject to change, but I would like some feedback on it as well. Thanks so much!

I look forward to your input!

[islandgirl]

All fundraisers are NOT automatically tax exempt. Even if it is a school, church or non-profit. Fundraising laws ares are different in every state - So you would need to check your states guidelines.

http://www.fundraisetaxlaw.org/

I would check with your accountant on how to set up your fundraisers to be safe.

Edited August 13, 2010 by islandgirl

[B@BlissStreet]

I just have a few questions to those of you who do fundraisers.

When an organization sells candles for a fund raiser for say $15 each, and if you were splitting with them 50/50, when the fund raiser is over, say they sold 100 candles. Would I claim $1500 in gross sales? Or do I claim just the $750 on my side of the deal?

Also, what do you feel is the best way to market yourself to bring in more groups for fundraisers? I thought about putting together a few candles, and mailing them off to local churches and schools with all of my fund raiser information.

I have also attached a copy of my fund raiser brochure I put together, it's pretty tentative so it's subject to change, but I would like some feedback on it as well. Thanks so much!

I look forward to your input!

I think your brochure looks great! Nice work.

[islandgirl]

I think your brochure looks great! Nice work.

Yes it does - Very Professional!!!

[GermantownCandles]

How would being tax exempt, as compared to not tax exempt, differ in my gross sales total other than having to charge sales tax to the non exempt group? It would still be considered $1500 in gross sales?

[islandgirl]

If you are a state that is required to collect sales tax on your fundraisers, then you as the selling agent, are required to collect sales tax on your selling price and pay the state the sales tax.

In that case, you have to show the total sale of $1500.00 and show $750.00 being income and $750.00 being donated to the fundraiser.

If this group chooses to buy the candles outright from you and they have a sales tax exempt number. Then that would be considered a wholesale account, and they would be responsible to collect and submit the sales tax.

Then you would only claim the $750.00 purchase price.

Fundraisers and being Sales tax exempt have totally different rules and laws. People often confuse these.

If you are not required to pay sales tax in your state on FR's. Then you can probably set up the fundraiser as a wholesale account and only claim the $750.00 you received from the group to purchase your candles.

Check with account to make sure.

Edited August 13, 2010 by islandgirl

[GermantownCandles]

Thanks for the feedback on the brochure! I really do appreciate it!!