Hello

 

Non-profit organizations sell goods for income.  They can earn more than their expenses.  The essential difference is how profit is distributed and employed.  For profit entities put the money in the pockets of investors and owners.  Non-profits pay fairly to their workers and any surplus funds must be used toward their cause.  Funds can be put aside for a good reason, e.g. like a church's building fund.  Look at Goodwill, Salvation Army, others.  They operate like any business, but the funds are used for their mission.  Taxes will be assessed when the entity hoards funds too long for no good reason.  Employee/employer wage laws/taxes apply.  Unpaid volunteers have no tax assessments, but can claim deductions for commuting by car and  other expenses incurred

 

Liability insurance is a good thing to carry.  It is a good feeling to know that if someone  is hurt due to a group's negligence, funds are there to help make it right. 

 

Angelo L. Coletta

former shop owner

Edward France <edfrance@bicicentro.org> wrote:

Good People,
           So Bici Centro of Santa Barbara is finally legit- we obtained fiscal sponsorship from our local bicycle coalition on December 4th, and are hoping all the hurdles to getting bank accounts, vendors number, liability insurance, financial 'books' and all that good stuff. Of course this means that we don't do any under the tabley stuff and cover our butt's. So here's a big question we are trying to deal with properly:

How do we legitimately sell bikes?

In other words- do we have people sign a release similar to if they build the bike themselves?

                     do we have a special insurance for selling bikes?

                    can the price be a donation, or is it a taxable payment?


is there any advice you all could send our way on the question of being a non-profit selling bikes.

All the best from fair Santa Barbara,

Ed France
BiciCentro.org

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