Taxes and Laws in Fundraising
Tax laws for nonprofit
organizations vary from state to state. First
and foremost, before your group conducts a fundraiser make sure
that you have filed paperwork with your state's department of
revenue that has declared you are a nonprofit or 501(c)(3)
organization. The treasurer and accountant for your
organization will need to make sure meticulous records are keep
and laws are followed when conducting a fundraiser. In
addition, some states may require that your organization obtain
a special permit for fundraisers such as raffles, lotteries or
other special events. Other things to take into consideration
may be extra liability insurance required while conducting a
There is a website with information pertaining to product
fundraisers that is provided by The Association of Fund-Raising
Distributors & Suppliers (AFRDS.org). The site gives basic
sales and use tax information on a state by state basis and
lists contact in the department of revenues for each state.
Visit FundRaiserTaxLaw.org for
information on your state.
Always give your donors a receipt for their contributions
Your organization should give your
donors and supporters a receipt for their contributions.
It is up to them to apply it to their tax