The question of selling Bikes
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
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 _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
That was a great tip I learned at Bike!Bike!: WWSAD? What would the Salvation Army do? You can look up your local laws, but it is easier to contact your local Salvation Army and just do what they do.
I have seen a requirement from distributors for a "re-seller license" but we don't have one and I have always left it blank and still been able to get the account.
That was a great tip I learned at Bike!Bike!: WWSAD? What would the Salvation Army do? You could look up your local laws, but it is easier to contact your local Salvation Army and just do what they do.
I have seen a requirement from distributors for a "re-seller license" but we don't have one and I have always left it blank and still been able to get the account.
Jonathan- To follow up, does the fact that you all don't have a reseller liscense mean you don't report sales tax income? do you consider all parts/bikes purchases as donations(therefore un-taxable)? That's cool to know we might be able to get a distributor acct without the resale #.
And as I understand thrift stores are increasingly hesitant to sell 'sporting goods' for liability reasons. could you tell me what liability insurance SLCBC uses?
best from the west,
Ed France & Bici Centro Crew
On 12/18/07, Jonathan Morrison jonathan@slcbikecollective.org wrote:
That was a great tip I learned at Bike!Bike!: WWSAD? What would the Salvation Army do? You could look up your local laws, but it is easier to contact your local Salvation Army and just do what they do.
I have seen a requirement from distributors for a "re-seller license" but we don't have one and I have always left it blank and still been able to get the account. -- Sincerely,
Jonathan Morrison Executive Director Salt Lake City Bicycle Collective 2312 S. West Temple Salt Lake City, UT 84115 w: 801-328-2453 c: 801-688-0183 f: 801-466-3856 www.slcbikecollective.org
Get Addicted to Crank! http://www.slcbikecollective.org/crank/
On Dec 17, 2007 10:00 PM, Angelo Coletta ruotangelo@yahoo.com wrote:
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 taxablepayment?
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 _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
Thethinktank mailing list Thethinktank@bikecollectives.org
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participants (3)
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Angelo Coletta -
Edward France -
Jonathan Morrison