Query by wqdh403: can a non-income group have a fundraiser that sells a item year-spherical?
This involves an ongoing fundraiser for a non-income group 501(c)three. We are striving to experiment with some concepts, but we also want to make certain almost everything is 100% lawful. I like actively playing with webpage types just for some thing to do, so I instructed them I would see about throwing some thing together.

My unique strategy was to consider to begin a company promoting pay as you go mobile phones, but that got tossed apart. Or ideas have been to consider to use the contacts I set up, have the non-earnings acquire the inventory and promote the phones on my web site and eBay. This organization is in a bind since it severely demands money but lacks the man electricity to run a key celebration. Locally we got permission to established up a tiny booth and individuals went nuts in excess of these issues….. people who will not want all the bells and whistles can get a pretty respectable telephone without breaking the financial institution or signing a deal.

We are necessary to have our own EIN and examining account so no funds go into a private account. My query is, if we have a site up yr spherical selling these phones and checklist a number of on eBay every time we have time, would that be lawful? Would this call for a new eBay account in the name of the organization? What would suck is we would have to start with comments, so I am not positive if we would offer significantly or not. Mainly I don’t want to get stiffed paying earnings tax on cash that go to the firm.

The issue with promoting stuff, I’ve located individuals will not get or donate to assistance the group, but they will acquire if they feel they are receiving a great offer. I experienced some left more than stock I needed to get rid of and people telephones offered quick.

Very best solution:

Response by Pat
It truly is known as Unrelated Organization Earnings.
It is legal IF you stick to the rules.
And some of it may be taxable to the organization.

I HOPE you have legitimate 501.c.3 status.
If not, you are committing a criminal offense.
If you don’t know that the IRS regulates this things, then I will bet you do not have a 501.c.three.

Search at these
http://www.irs.gov/Charities-&-Non-Income
http://www.stayexempt.irs.gov/virtualworkshop/UnrelatedBusinessIncome.aspx

And these
http://grants.gov/
http://foundationcenter.org/

Know much better? Go away your very own response in the feedback!

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