BP 11122023 129pm - Flipbook - Page 73
Gift Shop Guidelines
Updated: February 2022
Many Archdiocesan parishes and missions sell goods for the convenience of their members. The
shops range in size from a small closet to a full size room. Most shops are run by volunteers
with oversight by the parish business manager. The following guidelines should be considered
for any parish or mission that has a store.
GOVERNANCE- The store should operate as a parish/mission ministry under the Tax ID of the
parish/mission and under the guidance of the pastor. For these operations to be tax-exempt, refer
to state and federal tax sections below. Note: For-profit gift shops are prohibited from operating
on Archdiocesan property, as they may jeopardize the tax-exempt status of the parish Publication
1828 (Rev. 8-2015) (irs.gov).
ACCOUNTING - Receipts collected from the gift shop should be deposited into a parish or
mission operating bank account and recorded properly on the general ledger.
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Gift shop income and expenses may be booked to an exchange account or other
income/expense, if generating income for the organization. As the proceeds are used by a
ministry or the parish, the exchange account should be cleared out. Net proceeds can be
used to offset ministry expenses, such as Religious Education. Net proceeds that are used
to pay for parish operating expenses should be posted to Other Income/Expenses.
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The gift shop petty cash should be recorded on the balance sheet and reconciled
regularly.
TAXES State: Refer to the Georgia State webpage: https://dor.georgia.gov/taxes/business-taxes/salesuse-tax/tax-exempt-nonprofit-organizations for updates and official guidance from the state.
Per the Georgia State Sales and Use Tax regulations (O.C.G.A. 48-8-3 (15)(A) as of 2021, a
religious institution and nonprofit private school do not have to collect sales tax when following
applies:
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Sales are made as part of a specific fundraiser;
Total fundraising days do not exceed 30 days in any one calendar year;
Net profits or gross sales from the sale do not benefit any private person;
Net profits or gross sales are only used for relief to the aged, church youth
activities, religious instruction or worship, or construction or repair of church
buildings.
If the exemptions are not met, the following general state regulations should be applied.
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The seller (parish/mission/school) must pay sales tax on all inventory purchased for resale, to the extent that the items are purchased from a business that charges sales tax. If
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