Minnesota has two different exemptions that may apply to fundraising sales for the following groups:
- Youth and senior citizen groups: Up to $20,000
- All nonprofit organizations: Up to 24 days per year
To help determine if your sales are taxable, see our fundraising flowcharts:
- General fundraising sales
- Youth organization fundraising sales
- Senior citizen organization fundraising sales
Youth and Senior Groups
This exemption applies to up to $20,000 in fundraising sales, regardless of the number of days you spend fundraising. (Before Jan. 1, 2015, the limit was $10,000.)
If you exceed $20,000 in sales, you must start charging sales tax on your fundraising sales at that point. No tax is due on the first $20,000.
Note: The limit does not apply to candy sales by a youth group.
All Nonprofit Organizations
Nonprofit organizations that have 24 days or less of fundraising events in a year qualify for this exemption. If your nonprofit organization qualifies for this exemption, you may sell otherwise taxable goods or admissions at fundraising events without charging sales tax.
Fundraising event means an activity that:
- Is of limited duration
- Is not regularly carried out in the normal course of business
- Attracts people for community, social, or entertainment purposes
Fundraising events do not include business operations that provide services or sell goods during regular hours, such as a bookstore, gift shop, or thrift store.
Examples of fundraising events include:
- Bake sales