Georgia Department of Revenue Provides Detailed Guidance on Sales Tax and Nonprofit Fundraising

In Georgia, most §501(c)(3) tax-exempt organizations ARE NOT exempt from paying sales and use tax in Georgia. The Georgia Department of Revenue (GA DOR) realized that many tax-exempt organizations are not aware of their sales tax obligations especially regarding their fundraising activities. So, on July 2, 2020, the GA DOR issued a comprehensive bulletin on how and when sales and use tax applies to nonprofit fundraising activities. The bulletin explains 13 different fundraising scenarios and their sales tax implications. For instance, does your nonprofit have to collect sales tax on the sale of an auction item donated to your organization? What if you host a road race and charge an admission fee to raise funds? Should sale tax be charged on golf tournament entry fees or mulligans? Those and many more questions are answered in this bulletin.