Non-profit organizations exempt under Section (501(c)(3) of the Internal Revenue Code that make retail sales no more than six days a year are not required to have a vendor’s license or collect tax on those sales. If sales occur on more than six days, the organization must obtain a license, charge and remit tax. School-related student, parent-teacher and booster groups are exempt.

If your nonprofit sells products online, sales then are available 365 days a year: you need a vendor’s license, and must collect and file sales taxes. When determining what items you sell are taxable, talk to an accountant. Not everything sold relative to agriculture is tax free. A responsible Board and Treasurer will consult with a tax accountant in their state to ensure the Board and the organization are following all tax laws.

Disclaimer: LEAD for Pollinators, Inc. is not a CPA or attorney. For legal and accounting advice consult a licensed attorney or accountant.