Gift Shop GuidelinesUpdated: February 2022Many Archdiocesan parishes and missions sell goods for the convenience of their members. Theshops range in size from a small closet to a full size room. Most shops are run by volunteerswith oversight by the parish business manager. The following guidelines should be consideredfor any parish or mission that has a store.GOVERNANCE- The store should operate as a parish/mission ministry under the Tax ID of theparish/mission and under the guidance of the pastor. For these operations to be tax-exempt, referto state and federal tax sections below. Note: For-profit gift shops are prohibited from operatingon Archdiocesan property, as they may jeopardize the tax-exempt status of the parish Publication1828 (Rev. 8-2015) (irs.gov).ACCOUNTING - Receipts collected from the gift shop should be deposited into a parish ormission operating bank account and recorded properly on the general ledger.▪Gift shop income and expenses may be booked to an exchange account or otherincome/expense, if generating income for the organization. As the proceeds are used by aministry or the parish, the exchange account should be cleared out. Net proceeds can beused to offset ministry expenses, such as Religious Education. Net proceeds that are usedto pay for parish operating expenses should be posted to Other Income/Expenses.▪The gift shop petty cash should be recorded on the balance sheet and reconciledregularly.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, areligious institution and nonprofit private school do not have to collect sales tax when followingapplies:••••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 youthactivities, religious instruction or worship, or construction or repair of churchbuildings.If the exemptions are not met, the following general state regulations should be applied.•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. If73
It seems that your browser's pop-up blocker has prevented us from opening a new window/tab. Please click the button below to open the link manually.
Table of contents
3
5
7
13
17
25
27
33
37
39
43
45
47
55
57
59
61
65
67
69
73
77
83
87
91
97
98
99
101
102
107
108
110
113
115
120
127
131
139
141
145
149
151
159
160
161
165
166
167
169
172
