Spokes | Resources for Nonprofits

Empowering nonprofits to achieve their missions.

Find Us On Social Media:

FacebookLinkedIn
  • About
    • History of Spokes
    • Staff & Board of Directors
    • Frequently Asked Questions
  • Membership
    • Membership Benefits
    • Our List of Members
    • What Members Are Saying
    • Member Success Stories
  • Services
    • Post a Job
    • Starting a Nonprofit
    • Other Resources
  • Support Spokes
    • Our Generous Donors
  • Login
  • Contact Us
  • Job Board
  • Events/Workshops
    • Spokes Board Academy 2023
    • Spokes Nonprofit Symposium 2023

Do You Owe Sales Tax?

August 31, 2022 by Michael Simkins

As a nonprofit organization you may qualify for exemption from paying both federal and state income tax, but sales tax is a different matter. With some exceptions, a nonprofit’s sales and purchases are taxable. In other words, nonprofit and religious organizations, in general, are treated just like other California sellers and buyers for sales and use tax purposes.

For example, one of our local nonprofits held a day-long yard sale. All of the items sold had been donated to the organization for this purpose. Some members of the organization were surprised to learn that they needed to pay sales tax to the State of California based on the amount of their sales that day.

Some other examples:

  • Sales of food, meals, beverages, and similar items under a number of different circumstances.
  • Sales of tickets that buyers will exchange for food, beverages, or other physical products.
  • Sales of booklets, books, pamphlets, etc.
  • Sales of tickets for fundraising events when the ticket price includes amounts for food or beverages.
  • Sales of merchandise in Internet, live, and silent auctions.

Thankfully, the California Department of Tax and Fee Administration has published a guide specifically for nonprofits. Download your copy here.

Article Categories

  • Financial and Legal
  • Fundraising
  • Governance
    • Board Development
  • Human Resources
  • Marketing & Communication
  • For Board Members
  • For Executive Directors
  • For Staff and Volunteers

DISCLAIMER: Spokes offers informed advice and recommendations, not professional counsel. Blog content is current as of the date shown. Individual posts are not necessarily updated, so please confirm the accuracy of the information, especially of older posts.

Popular Topics

board Board governance board of directors California nonprofits charity communication consulting donations donors employees events financial fundraising insurance leadership management marketing nonprofit nonprofit governance nonprofit management nonprofits nonprofit symposium philanthropy policy productivity Professional Development retirement spokes taxes volunteers

Member Testimonial

“As a result of participating in Spokes services, we were able to get a concrete action plan, which led to superior results for our organization. It was an extremely positive experience!”

Linda Wilkes-Chaffin
Board of Directors
San Luis Obispo Master Chorale
San Luis Obispo, California

What Else Are Members Saying?

Learn about Spokes membership

Guiding nonprofits to achieve their goals through support and expert resources.

How Can We Make A Difference Together?

Spokes welcomes local professionals who would like to share their expertise in support of the nonprofit sector.

Get Started Contributing

Recent Articles

  • Why Your Nonprofit Needs a Funding Strategy…
  • Can you fire a volunteer?
  • Before you convene…

Sign up for Spokes — Resources for Nonprofits

* = required field

Copyright © 2023 Spokes | Resources for Nonprofits. All Rights Reserved.
PO Box 5122, San Luis Obispo, CA 93403
Hosting by NDIC.
Photography by Nicole Boughton.