Pennsylvania and Philadelphia

CHARITABLE ORGANIZATIONS

    Sales to charitable, volunteer firemen’s and religious organizations may be non-taxable if the sale is made to the institution directly. The person claiming the exemption must be an authorized agent or representative of the exempt organization, must make a purchase in its name, with its funds, and must submit to the club properly executed forms: REV-1715, Exempt Organization Declaration of Sales Tax Exemption; REV-1220, Sales and Use Tax Exemption Certificate. Sales to individual members of an exempt organization may be taxable if the sale was not related to the purchaser’s exempt function or if the organization is reimbursed by its members. These documents must be retained by the Club for verification, under audit, by the PA Department of Revenue.

    Charitable organizations that have properly registered with the PA Department of Revenue will be issued a Sales Tax Exemption Number which begins with 75; for example: 75-00000-0. (Federal Employer Identification Numbers cannot be used.)

Reg SALES AND USE TAXES

32.1 EXEMPTIONS – GENERAL PROVISIONS – Charitable organization.

.10 --.20 Charitable organization is a group or body of persons which is created and which exists predominantly for the purpose of performing a humane service; promoting the good and welfare of the aged, poor, infirm, or distressed; combating juvenile delinquency; or advancing the spiritual, mental, social, and physical improvement of young men and women. A foundation or fund predominantly organized to provide for the advancement of education or science is also included in the term. The persons entitled to benefit from services performed by the organization shall be chosen from a class of persons substantial and not predetermined in number. The funds of the organization shall be predominantly derived from public or private contributions, and the organization shall be without pecuniary benefit to any office, member, or shareholder, except as reasonable compensation for actual services rendered to the organization. The term does not include an organization whose predominant purpose is to conduct non-charitable events or activities, even though the proceeds derived are donated to an exempt organization as defined herein.

    Examples of charitable organizations: (i) Organizations such as the Red Cross, public hospitals, Community chests, Orphanages, home for the aged or infirm, YMCA’s, UJC’s, CYS’s, Boy and Girl Scouts, SPCA’s, volunteer ambulance and rescue organizations, and similar organizations.

NOTE: Out-of-state organizations are required to complete the "Pennsylvania Exemption Certificate" form to obtain an exemption from payment of sales tax.