Hughey's Debits & Credits: Bookkeeping. Payroll. Taxes.

All posts tagged memphis

Gavel (1)As a nonprofit organization, you have the option to take advantage of your state’s tax exemption status for sales taxes. This exemption will allow your organization to not have to pay sales taxes on purchases. This is a great way to save on the almost 10% sales tax here in Tennessee. However, are you or your staff guilty of tax evasion?

As an accountant, I am often making purchases for our nonprofit clients. I have copies of all the necessary documents in order to save our clients sales taxes. Your organization may have staff such as Program Managers or Executive Directors that has an exemption card with their name on it because of their frequent purchases for the organization.  Over the years, we have encountered countless times where staff members have been using the agency’s tax exemption card to save money on personal purchases. However, this is illegal and unethical to use the agency’s tax exemption card for personal use. The consequences could be years in prison and large fines for the State of Tennessee in addition to possibly losing some of your civil rights, such as the right vote or carry a firearm.  Contact your state’s sales tax division to determine your state’s consequences. Read more

It’s the holiday season and the spirit of giving is heartwarming!  Now is the time to ask for that last contribution of the year!  If you haven’t asked, it is not too late!  Get those letters in the mail, hand signed by the Executive Director or Development Director.  Increase your donation chances by including a self addressed envelope.  

No time to print and send them out?  A nicely worded email outreach to your current donors and contacts is better than no communication at all.

Here’s a few tips on asking for a last minute donation:

  1. Don’t just ask, give a reason for your ask. Provide the reason why your organization should receive some of their holiday cheer.  
  2. Make it short and sweet. Your donors are probably getting bombarded with holiday emails from other sources so make it worth their while to open your email.
  3. Be sure to thank them in advance but most importantly after the donation. As a donor, I am always excited to receive a handwritten card to say thank you for my hard earned money. Wouldn’t you?

From our family to yours, warm wishes,
Ronda & Cortez Hughey