First off I want to thank you for your content. I have started volunteering for my local 501c3 and these videos have taught me so much. My main question is how can I help my 5013c by selling products on eBay like goodwill. Or can I ? Our charity runs much like goodwill and all of our profits are used for scholarships or betterment of local community. I am seeing some items that come in and could be sold for much higher prices but because this is such a small community that we sell it at fifty cent prices . Think yard sale pricing scales. Everyone at this non profit is volunteering. From the board members to the people working the register these are all amazing people I'm proud to work with.
First off, thanks for watching, and sorry for such a delayed response. The way RUclips posts the comments, it's not always easy to see on our end who has or hasn't been responded to. Selling thrift items is a legitimate way to earn revenue for your nonprofit. To keep it from being a taxable, commercial-equivalent activity, however, one of two things need to be true: 1) The items you're selling were donated, and/or 2) The staff responsible for the sales activity are volunteers. Sounds like both is true for you. If neither were true...you're purchasing inventory AND paying your sales staff...then it would most likely be taxable unrelated business income. Good luck with it!
Awesome! I’m scheduled to decide my first options with one of your sales reps on the 15th! I’m going to possibly use compass as a beginning point. Thank you!
Great question. The choice really is up to you. Many will choose to remain structurally informal and operate as a sole proprietor. Others may form an LLC or an S-corp. If you intend to do this long term and/or you anticipate any level of legal liability exposure due to your activities, you should probably consider an LLC or S-corp to separate the activity of the project from your personal stuff.
Would it be okay for a 501(c) 3 to throw a fundraiser for another 501(c)3? But they collect the donations and then send it to the 501(c) 3 of benefit after the event?
No, that wouldn't work. Fiscal sponsors are charitable entities, so their sponsorships must support charitable causes. A 501c7 would not qualify. Also, 501c7 orgs would need to be careful about that even if it could work, as they (501c7s) are very limited in the amount of nonmember income they can generate.
Are you seeking a fiscal sponsorship 501(c)(3)? Visit Compass Charitable Partners on the web at www.compasscharitable.org
Any videos on 501 c10? I dont see any on your channel
Your channel is amazing! I am an industry accountant. But I volunteer with folks who are unsheltered. This has been extremely helpful for our group
We are so happy that our videos are helpful. Thanks for commenting!
First off I want to thank you for your content. I have started volunteering for my local 501c3 and these videos have taught me so much.
My main question is how can I help my 5013c by selling products on eBay like goodwill. Or can I ? Our charity runs much like goodwill and all of our profits are used for scholarships or betterment of local community. I am seeing some items that come in and could be sold for much higher prices but because this is such a small community that we sell it at fifty cent prices . Think yard sale pricing scales.
Everyone at this non profit is volunteering. From the board members to the people working the register these are all amazing people I'm proud to work with.
First off, thanks for watching, and sorry for such a delayed response. The way RUclips posts the comments, it's not always easy to see on our end who has or hasn't been responded to.
Selling thrift items is a legitimate way to earn revenue for your nonprofit. To keep it from being a taxable, commercial-equivalent activity, however, one of two things need to be true: 1) The items you're selling were donated, and/or 2) The staff responsible for the sales activity are volunteers. Sounds like both is true for you. If neither were true...you're purchasing inventory AND paying your sales staff...then it would most likely be taxable unrelated business income.
Good luck with it!
Awesome! I’m scheduled to decide my first options with one of your sales reps on the 15th! I’m going to possibly use compass as a beginning point. Thank you!
What work do you have to do on the legal side if you create a project which then operates under a fiscal sponsorship?
Great question. The choice really is up to you. Many will choose to remain structurally informal and operate as a sole proprietor. Others may form an LLC or an S-corp. If you intend to do this long term and/or you anticipate any level of legal liability exposure due to your activities, you should probably consider an LLC or S-corp to separate the activity of the project from your personal stuff.
Would it be okay for a 501(c) 3 to throw a fundraiser for another 501(c)3? But they collect the donations and then send it to the 501(c) 3 of benefit after the event?
In most cases, yes, that should be OK.
Would a 501 c 3 be a fiscal sponsor for a 501 c 7? Would Model B or C be the best model?
No, that wouldn't work. Fiscal sponsors are charitable entities, so their sponsorships must support charitable causes. A 501c7 would not qualify. Also, 501c7 orgs would need to be careful about that even if it could work, as they (501c7s) are very limited in the amount of nonmember income they can generate.
Would working concession stands to raise money be considered nonmember contributions
Love it
Glad you liked it!