What Really IS a Direct Sales Fundraiser?
If you are new to Direct Sales, you may hear a lot about Fundraising, but not find a lot of information as to what it really is. Well, I am here to clear up the mystique for you!
Fundraising is an event in which a charitable organization is identified to receive funds that are raised specifically for that charity, non profit group or select individual(s). In terms of Direct Sales, the donation to the charity usually comes out of the profit of the representative and the amount is identified ahead of time by way of either a percentage donation or a flat amount.
Many companies offer fundraising to help their reps but that does not mean the company kicks in money. Most of the time, the representative is the donor of his or her profit from the sale of goods through her business. There are some companies, however, that do have specific items to use for fundraising that are at a special price or they will have specific donation amounts.
If the group has a non profit status and a valid non profit number, most companies will withhold taxes from the fundraiser shipment so the customer does not have to pay State sales tax on the product. If your state does not have sales tax, this will not apply to you. Make sure to check with your company ahead of time on their procedures. They most likely will have special shipping procedures and instructions for fundraising sales so study them and ask questions!
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July 18th, 2012 at 1:22 am
Good article. I believe since the term ‘fundraising’ is synonymous with charity or ‘helping’, only non-profits should be allowed to advertise this term. A company selling goods to raise funds for anything other than charity is just plain ‘business’.
Amy Thompson, Design @logoninjas