Nonprofit organizations that hold fundraisers or sell merchandise must be cognizant of sales tax collection obligations. Many nonprofit organizations think that they are not obligated to collect sales tax. Perhaps they believe that they are not required to collect tax because they do not routinely sell products or tickets. Some organizations think that their exemption from federal income tax extends to sales tax. But nonprofit organizations, with a few exceptions, are required to collect sales tax (and required to pay sales tax on purchases). This article provides guidance to nonprofits on their sales tax obligations regarding gala ticket and silent auction sales.