garage sale at non profit

Started by BonnieG1 • 2 replies • 1388 views

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BonnieG1 (Nebraska)
Posts: 1,186

Posted:

If we have a garage sale using donated items and put the $ into the regular fund would that affect our non profit status. We are a senior nonprofit condominium with 43 units in NE.

TimB4 (Tennessee)
Posts: 21,059

Posted:

I can not positively answer on how it would or would not affect your non-profit status. My best guess is that it would not impact it unless you were making thousands on the sale. However, any profit from the garage sale would have to be declared as income on your taxes.

You would also need to let anyone who donates an item know that anything donated can not be written off of their taxes.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Bonnie,

Before you have the sale, definitely check with the State regulations on fundraising. If I am near to correct, you may not be able to raise money to be put in your general fund. Your non profit corp is not a charity and probably your charter or Inc. papers do not address fundraising. Might be a no no.

IRS regulations on non profit corps do NOT allow you to have more than a $5000.00 annual income without applying for a 501c(3) status.

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