Thank you for your reply. That is where I thought catalog fundraisers should fit, but the past two years the catalog sales (Kathryn Beich, etc.) have been accounted for on line 7a.
Now, a question about including the amount on line 6a rather than 7a. It asks for gross receipts. How do I account for the 50% (or more) paid back to the company? Line 13?(Professional fees and other payments to independent contractors) Or is it a direct expense (line 6b)?
Can you be more specific on your question? Based on the instructions, it seems pretty clear that a fundraising sales activity (whether door-to-door or to family and friends) would be on line 6a-c.
Lines 6a–c—Special events andactivities.—On the appropriate line, enter the grossrevenue, expenses, and net income fromall special fundraising events and activities,such as dinners, dances, carnivals, raffles,bingo games, other gambling activities,and door-to-door sales of merchandise....
If it's a short-term special event like a PTO sales fundraiser, rather than an on-going sales situation where you stock inventory, I believe this is where it fits.
In the past we have categorized our catalog fundraisers as sales of inventory, but as I was reading the instructions it says door-to-door sales is a special event(we don't do door-to-door at our school, but the students sell to family and friends). I really don't want to mess this up. I'm thinking of filing an extension. (Where's the pulling your hair out icon?)
