As you may know, some states make it a requirement that sales tax be added to any purchases made through your fundraisers. If you’re an organization running any type of campaign selling taxable items, you may need to report these purchases to the state and pay taxes.
Be sure to check your states specific rules and implications to find out if you need to be collecting sales tax on your campaign purchases.
What kinds of items would my state require sales tax on?
- Items sold in sale fundraisers (i.e. t-shirts, water bottles, and hats)
- Items won in an auction (i.e. autographed memorabilia,gifts baskets, and experiences)
- Perks or rewards given in a crowdfunding campaign (i.e.posters, pop sockets, and coffee mugs)
- Registrationsfor events (i.e. races, golf tournaments, and challenges)
Taxes are not applied to any donations or fees, just to individual items in your fundraiser. For instance, if a generous participant decides to give an extra donation in addition to the item they purchase, only the item would accrue the sales tax — not the donation.
How to collect sales tax on campaign purchases
With RallyUp, sales tax can easily be collected on each campaign for the organization to pay.
Here’s how to do it:
- Click on My Campaigns in the left menu.
- If you’re in list view, click on the title of your campaign. If you’re in grid view, click on the campaign image.
- Click Edit Campaign*.
- In the timeline at the top, click on the heading of the campaign type you’re running (i.e. ‘Auction’ or ‘Sale’).
- Scroll until you find the following box (this is what you’re looking for):
6. Check the box next to “Add sales tax to item totals at checkout”.
7. Enter in the sales tax amount.
8. Click Save at the bottom of the page.
And that’s all there is to it! The sales tax will be displayed to purchasers in the confirmation receipt that is emailed to them immediately after their purchase.
Keeping tabs on sales tax collected
If at any time you want to view how much sales tax was collected on your fundraiser, we’ve made it super easy to do so. The amount of sales tax accumulated will be broken out by each individual transaction in the campaign reports. It has its own column labeled “Sales Tax”, so you can’t miss it. The best part? You can export it for whatever you may need.
Have more questions?
We’re here to help! Our team is available via chat on our website during normal business hours. Just hit the orange message button in the bottom right of your screen.
Note: Terminology on these buttons may be different according to the terminology that you’ve chosen for your campaign.