Taxes and Laws in Fundraising

Laws for

 Nonprofits

vary from

 State to State

 

 

 

 

 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 fundraising event.

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 situation.