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View Full Version : Fundraisers?

10-05-2013, 02:04 PM

I'm a new rep and I was thinking about contacting various companies to set up fundraisers. I'm curious if you give the entire 30% to the organization?


10-06-2013, 04:34 AM
Yes and no.

It depends on a few things:
Is the charity donation tax deductible?
Who is getting the free jewelry?
How much are the sales?
What are the expenses for the fundraiser?
What self-employment taxes will I owe on the income?

For a tax deductible donation where I am getting the free jewelry and sales are at least $1000 with 6 orders minimum, I will let the organizer get one or two of the half priced items, and we can raffle off the third.

I take the free jewelry in lieu of my commission (which is really a loss since I could have taken the none and purchased 30% more jewelry).

Then I donate my full commission after documented expenses. Examples include supplies, shipping, mileage, tax. If I expect to have a net profit this year, I will also deduct self-employment taxes. I tell my fundraiser folks to expect about 25% after expenses.

I also prefer to make the donation at least 30 to 60 days after the event, after any returns and exchanges have been handled. If that is not possible, I try to speak to every customer personally to ensure they are satisfied and let them know that once I make the donation, any return will be refunded less the amount their purchase generated for the charity. (If this ever happens, you need to do a manual return to tell Silpada the right amount for them to refund.)

If the coordinator wants free jewelry, I will split the jewelry and give 15% commission and encourage her to sell raffle tickets for a gift certificate and give 30% on those gift certificate purchases.

Hope that helps!