Below are some details related to selling merchandise. Please contact your finance liaison to determine whether or not the merchandise you are selling is related to your charitable mission.
Merchandise related to your charitable mission
Projects are allowed to sell merchandise that is related to their charitable mission (for example, the sale of an anthology written by youth in the course of an after-school program) and that serves an educational purpose. The project must charge sales tax for the merchandise that is sold, depending on the type of merchandise. Please check online for current sales tax rates. Items may be sold online or in-person in the state of California. Projects may not sell merchandise in-person outside of the state of California.
Ordering items for sale, filling orders, and storing and controlling your inventory can be costly and time consuming. If you want to sell merchandise with your project’s logo on it, consider giving it away for a “suggested donation.” The proceeds, less the value of the item, are tax deductible to the donor and represent a much more direct source of support for your project.
Merchandise unrelated to your charitable mission
We strongly discourage fundraising through the sale of merchandise that is not directly related to your project’s charitable mission and that does not serve an educational purpose. Proceeds from sales that are unrelated to your program are subject to unrelated business income tax (UBIT). If you would like to sell merchandise that is unrelated to your charitable mission (for example, selling t-shirts), please discuss this with your program liaison.