Hi - this ended up being an interesting question to pursue! From what we found online, it looks like you do not have to file if your gross receipts are under $5K. But you may be able to qualify for tax-exempt status without applying to the IRS. Check it out:
https://www.nolo.com/legal-encyclopedia/small-nonprofits-qualifying-tax-exempt-status-without-filing-irs-application.html
good luck. Liz from PTO Today
- Liz L
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Every state has different rules as far as tax obligations go with school product fundraising. Some states require the collection of sales tax if you’re “acting as an agent” for the seller (i.e. fundraising company). This would be the case for a brochure fundraiser. However, some states don’t require that you pay tax if you order the product online and then resell it. In this case a ‘certificate of resale’. Paying sales tax for products ordered online would not be required because the school has title to the merchandise at the time it is sold (purchaser & seller). You should check with your state’s department of revenue. For more information see The Ultimate School Brochure Fundraising Tax Guide.
- clayboggess
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The Ultimate School Brochure Fundraising Tax Guide: https://bigfundraisingideas.com/resources/ultimate-school-brochure-fundraising-tax-guide