Does your nonprofit organization purchase tangible goods at retail, like office supplies, furniture, or computers? If so, it may qualify for exemption from state sales tax on such purchases, with substantial resulting savings. That’s great news! Keep in mind though that sales tax exemption is state-specific. Each state has its own exemption qualification requirements, application process, and renewal aspects. So if a nonprofit buys goods elsewhere, such as for out-of-state conferences or a new program office, it may need to apply for sales tax exemptions in other states.
By Guest Author Sherry Quam Taylor
Every nonprofit needs more money, right? I walk into most meetings on the premise of teaching organizations to raise more money. But soon the conversation turns to the annual, quarterly, and monthly rhythms of structure and processes that may or may not be in place. Often many of these core and supporting practices are quickly brushed over.
What do Donald Trump and Hillary Clinton share in common? Among so many things political and otherwise (go ahead, use your imagination), they both head up charitable foundations, which have recently received media scrutiny for apparently operating outside legal boundaries. What are the problems? More importantly for us regular folks, what can prudent and responsible nonprofit leaders learn from these examples? We will focus here on several areas related to:
- State charitable regulation requirements,
- Tax exemption principles against private benefit for nonprofit insiders, and
- IRS requirements for staying on course with an organization’s tax-exempt purpose.