An Administrator's Guide to California Private School Law

Chapter 19 – Fundraising

If the School uses the vehicle or materially improves it before selling, the school should provide the receipt at the time of the donation. 2508 That receipt should include a certification and description of the use or intended improvements and a certification that the vehicle will not be sold before the school’s use or improvements are complete. 2509 The School must retain a copy of these acknowledgments provided to donors. 2510 D. S ALES P ERMITS A ND R ECORDKEEPING If the school makes sales of merchandise or goods that are subject to sales tax at an auction, it must obtain a seller’s permit and pay sales and use tax on an annual, quarterly, or monthly basis. 2511 If the school holds less than three fundraising events that include selling merchandise or goods subject to sales tax each year, it may obtain a temporary seller’s permit for each event. 2512 For holders of temporary seller’s permits, the return and payment of tax are due on the last day of the month in which the event is held. 2513 If the school conducts three or more fundraising events each year, or if its taxable sales activities occur continuously, it should apply for a permanent seller’s permit. 2514 To apply for a permit, visit or call one of the California Department of Tax and Fee Administration’s local offices to obtain an application, or register online at www.cdtfa.ca.gov. The school must keep records that substantiate gross receipts from all sales of tangible personal property, all deductions claimed in filing sales and use tax returns, and the total purchase price of all merchandise or goods purchased without tax for sale or use by the school. 2515 The school should keep separate records for each event, showing the total amount received, that clearly distinguishes between taxable and nontaxable sales. Schools should keep these records for at least four years. 2516 The following free publications which provide tax advice are available at online at www.cdtfa.ca.gov:  Publication 18, Nonprofit Organizations 2517  Publication 51, Resource Guide 2518  Publication 73, Your California Seller’s Permit 2519

H IRING T HIRD P ARTY FOR P ROFESSIONAL F UNDRAISING A SSISTANCE

Section 3

Schools often use the services and abilities of their staff and volunteers to prepare fundraising campaigns, solicit funds, and handle all aspects of fundraising. Nonprofit corporations may, however, hire a third party fundraising entity or expert to assist with its fundraising efforts. Schools often hire third party fundraising experts to help increase their efficiency and, hopefully,

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 607