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State Tax Laws for Nonprofit Organizations and Charities

Tax laws for nonprofit organizations vary from state to state.

Your organization is responsible with keeping up with the ever-changing tax regulations.

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 your organization is a nonprofit or 501(c)(3) organization. The treasurer and accountant for your organization will need to make sure meticulous records are kept and 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 – The site gives basic sales and use tax information on a state by state basis and lists contacts for the department of revenues for each 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 personal tax situation.

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