RE: Wisconsin Sales Tax

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Jim Hahn (jhahn@wchsm.org)
Fri, 3 Sep 2010 08:17:21 -0700



From: "Jim Hahn" <jhahn@wchsm.org>
Date: Fri, 3 Sep 2010 08:17:21 -0700
Subject: RE: Wisconsin Sales Tax
Message-ID: <A2C2F0AA32B02243B731BEC62DBF7453047C1E0740@EX-BE-015-SFO.shared.themessagecenter.com>

Pat -

You need to know the FMV of the book. (Fair Market Value) How much did the
 city sell it for, or what might be a reasonable price to purchase it.

I suggest you offer it as a premium to anyone renewing their membership at the $?? Level or to new members at the $?? Level while supplies last. This
 premium would likely not be what is called an "Insubstantial Gift" - so it
 WOULD reduce the tax deduction to a donor if they claim it, and you would need to provide them with the FMV by which their gift is reduced for tax ac counting.

As the book sounds like a history and you are a history group, it would not
 then qualify as "unrelated business income" that would be subject to tax, and if you are not selling the book, there is no sales tax.

If you can imagine, it is somewhat like what PBS does during pledge drives,
 offering the John Denver CD for $??, or the DVD for $??. They pick these gifts and levels to coincide with the rules for how much of a premium can b e given (value) for what amount of a donation. By keeping the premiums belo w the allowable value, they avoid having to qualify the tax deductions for donors.

Feel free to call my cell (414) 369-2373 if you have questions. I am a Cert ified Fundraising Executive of many years, and always happy to help if I ca n.

________________________________ Jim Hahn, CFRE Director of Development & Marketing WAUKESHA COUNTY MUSEUM 101 W. Main St., Waukesha, WI 53186
(262) 521-2859 ext. 228, jhahn@wchsm.org<mailto:jhahn@wchsm.org>
(412) 716-1880 cell-note area code

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________________________________ From: localhistory-request@listserve.uwec.edu [mailto:localhistory-request@ listserve.uwec.edu] On Behalf Of Freedom Area Historical Society Sent: Thursday, September 02, 2010 4:59 PM To: Local History List; patk@new.rr.com Subject: Wisconsin Sales Tax

Recently, the Freedom Town Board donated more than 50 "Town of Freedom 1852
 - 2002" history books to our historical society as a means to raise money
. We want to advertise them as follows: "Freedom History books are avail able for a $25 donation".
(I believe churches 'sell' books for a stated donation amount.) Will we ne ed to pay sales tax to the state if we ask for a specific donation amount?

Currently, we do not have a gift shop, nor do we sell any items (other than
 as part of a fundraiser). The history book was published in 2005, so most
 people interested in owning the book have already purchased it. Therefore
, we don't expect to sell more than one or two books a month, if that! I c hecked the Wisconsin Sales & Use Tax guidelines for non-profits, but found nothing that addressed our question.

We're hoping some of you have had experience with this.

Thank you

Pat Konkle President Freedom Area Historical Society Outagamie County

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