Christ Child and its Chapters are recognized as nonprofit 501(c)3 organizations that are not required to pay federal income tax. Our 501(c)3 status has nothing to do with paying sales tax.   Sales tax (as of 11/11) is collected at the state and local level.  Each taxing authority has different rules so you will need to check with them but here are some questions to ask.

  • How does my state/local government charge sales tax for sales by non-profits?

  • Do we pay tax on purchases used to fulfill our mission-layette purchase, clothing, books, printing for membership items, membership meetings, etc?

  • What document do we need if the sales tax is waived?

  • Do we pay sales tax on items purchased for fundraising purposes- invitations, program books,     auction items, meals at fundraisers?

  • Can we get a resale exemption for the purchase of the items we will be reselling at our fundraiser?

  • When do we need to charge sales tax and how often do we need to remit the tax?

  • Is there a de minimus rule that would allow a small chapter not to have to collect sales tax  because it would be such a small amount?

  • Is there a day(s) when sales tax is not collected?  (Some states give 501(c)3 organizations a tax free day or two every year).

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