How Much Do We Collect? Sales Tax Liability for Nonprofit Sales

It’s no surprise to pay sales tax when buying goods at stores.  But what happens when a nonprofit organization sells goods, through a website, at periodic conferences, or as part of its program activities?  Must the nonprofit collect sales tax too on its sales of T-shirts, books, or other items made available to others, just like a store?  Aren’t nonprofits exempt from taxes?  If a nonprofit’s sales are not exempt, under which state sales tax law will it owe sales tax?

How Much Do We Owe? Multi-State Nonprofit Sales Tax Exemptions for Retail Purchases

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. 

Want to Grow Your Nonprofit’s Funding? 7 Questions Every Nonprofit Leader Should Ask

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.