Georgia Department of Revenue - Policy Bulletin SUT-2020-02 - Fundraising Activities by Organizations Exempt Under IRC §501(c)(3)

Sep 19, 2026

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Guidance for Georgia policy on sales and use tax for IRC §501(c)(3) organizations and related fundraising transactions. Covers tax treatment of purchases made for an organization’s own use, sales of tangible personal property at retail, and donations, including items given away as appreciation. Includes obligations for collecting, remitting, and documenting tax, with references to specific forms and Georgia regulations. Also addresses fundraising formats such as events, galas, auctions, door prizes, raffles, bake sales, camps, races, and charity tournaments.

LanguageEnglish

CategoryLetters

FormatPDF

Pages13

Reading Time5 min

AccessFree to download

Issues

Sales and use tax for purchases by §501(c)(3) organizations

Sales and use tax for sales by §501(c)(3) organizations

Sales and use tax for donated items

Sales and use tax for items given away as appreciation

Sales and use tax for specific exempt entities and related fundraising sales

Sales and use tax for food tickets and admission to events

Sales and use tax for galas and silent auctions

Sales and use tax for door prizes and raffles

Sales and use tax for bake sales

Sales and use tax for educational events and camps

Sales and use tax for charges to participate in races

Sales and use tax for charity golf tournaments

Discussion of Issues

Georgia Department of Revenue Policy Bulletin SUT-2020-02 July 1, 2020 (Supersedes Informational Bulletin SUT 2013-03-28) Fundraising Activities Conducted by Organizations Exempt from Federal Income Tax Under Internal Revenue Code §501(c)(3) Purpose: This Policy Bulletin provides guidance to organizations exempt from federal income tax under Internal Revenue Code (“IRC”) §501(c)(3) (“§501(c)(3) organizations”) when making purchases and sales as part of a fundraising activity. This bulletin also provides guidance to sellers of tangible personal property when making fundraising-related sales to §501(c)(3) organizations. Publication Date: July 1, 2020 Authority: O. C.G.A. §§ 48-2-7, 48-8-2, 48-8-3, 48-8-30. Ga. Comp. R. & Regs. r. 560- 12-1-. 14; 560-12-2-.01; 560-12-2-.07; 560-12-2-. 13; 560-12-2-. 18; 560-12-2-.21; 560- 12-2-.22; 560-12-2-.28; 560-12-2-. 74; 560-12-2- . 79; 560-12-2-. 83; 560-12-2-.90; 560- 12-2-.100. Scope: A Policy Bulletin is intended to provide guidance to the public and to Department personnel. It is a written statement issued to apply principles of law toa specific set of facts or a general category of taxpayers, superseding all conflicting documents and oral directives previously issued by the Department. A Policy Bulletin does not have the force or effect of law and is not binding on the public. It is, however, the Department's position and is binding on agency personnel until superseded or modified by a change in statute, regulation, court decision, or subsequent Policy Bulletin. Issues: 1. How does sales and use tax apply to purchases made by §501(c)(3) organizations? 2. How does sales and use tax apply to sales made by §501(c)(3) organizations? 3. How does sales and use tax apply to items donated to a §501(c)(3) organization? 4. How does sales and use tax apply to items given away by a §501(c)(3) organization as a token of appreciation? 5. How does sales and use tax apply to items sold by a religious institution, qualifying nonprofit child caring institution, nonprofit parent teacher organization or association, nonprofit private or public school (grades K-12), nonprofit entity raising funds for a public library, or member councils ofthe Boy Scouts or Girl Scouts? 6. How does sales and use tax apply when a §501(c)(3) organization charges for food tickets for or admission to a festival, block party,“Taste of” event, carnival, fair, or other event? a. How does sales tax apply to the rental of booth space by restaurants? b. How does sales and use tax apply if a vendor provides ridesand games? c. How does sales and use tax apply to sales of items made by a §501(c)(3) organization’s clients? 7. How does sales and use tax apply at galas and silent auctions? 8. How does sales and use tax apply to door prizes and raffles? 9. How does sales and use tax apply at bake sales? 10.How does sales and use tax apply to an educational event? 11.How does sales and use tax apply to church camps, summer camps, day camps, sports camps, and other similar camps? 12. How does sales and use tax apply to charges to participate in a halfmarathon, marathon,“fun run”, walk or any other similar race? 13. How does sales and use tax apply to charity golf tournaments? Discussion of Issues: 1. How does sales and use tax apply to purchases made by §501(c)(3) organizations? Unless a specific exemption applies, §501(c)(3) organizations (including churches, parent teacher organizations, charitable organizations, and civic organizations) must pay sales and use tax on all purchases made for the organization’s own use. Thus, for Georgia sales and use tax purposes,§501(c)(3) organizations are generally taxable just like any other organization. Examples: • A church purchases prayer books and office supplies for use by the church. The church owes sales and use tax on the purchase price of the prayer books and office supplies. (Note in Q5, below, that certain fundraising sales by a

FAQs

How does sales and use tax apply to purchases made by §501(c)(3) organizations?

Unless a specific exemption applies, §501(c)(3) organizations generally must pay sales and use tax on purchases made for the organization’s own use in Georgia. Churches, PTOs, charitable and civic organizations are included.

How do §501(c)(3) organizations handle sales of tangible personal property?

When selling tangible personal property at retail to the end user, §501(c)(3) organizations must comply with sales tax collection and remittance requirements unless an exemption applies. Registered organizations remit using Form ST-3.

What tax responsibilities apply when a registered §501(c)(3) organization purchases items for resale?

Registered §501(c)(3) organizations may purchase items tax-free for resale by providing the seller a properly completed Form ST-5 Sales Tax Certificate of Exemption. Electronic filing and payment apply when amounts owed exceed $500 in connection with a return.

Sep 19, 2026

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