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Free gift with a donation?

This topic contains 3 replies, has 1 voice, and was last updated by  David Crabill 10 years, 8 months ago.

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  • March 3, 2014 at 3:12 pm #4562

    Jimbo

    Concerning the “Face to Face” restriction that forbids “remote” online payment and shipping.

    1- Would a non profit 501(c)3,4 (Pinellas County, FL) be allowed to mail a home made seasoning blend (in a properly labeled jar) in the event of an online PayPal donation to that organization?

    2- How about a small animal rescue not registered as a non profit 501(c)3,4 but, still actively accepts donations?

    Either scenario, providing a free gift does assist in fund raising capabilities.
    But, I was wondering if that circumvents the strict face to face exchanges criteria.
    I doubt it but, I did not see those circumstances addressed here or coming up in the search.

    3- I have accepted PayPal card for an item at a yard sale once which, basically means I sold it online. I logged into PayPal, made a button, he clicked it and he entered his info to complete the payment as he did not have PayPal. Assuming I am splitting hairs in the definition of “online sales” as you can accept plastic cards for cottage foods “face to face” no matter what or how the currency is exchanged (right?) but, is it just shipping the product, free or not, the forbidden part?

    Thank you for such a useful informative site.

    March 4, 2014 at 5:50 am #4583

    David Crabill
    Keymaster

    I don’t think it matters what kind of nonprofit it is… if you’re shipping homemade food around as part of a business then that’s not allowed.

    Even though online sales aren’t allowed, paying thru PayPal in-person still maintains the spirit of the law and I would say it’s okay to do that. It’s really not much different from using PayPal Here, and I know that’s okay to use. That’s my take on it, but I haven’t verified that with the ag dept.

    The main point is that a level of accountability should be involved in the transaction. The buyer and seller should meet in-person before the transaction happens.

    March 4, 2014 at 7:16 am #4585

    Jimbo

    So, giving it away as a free gift with a donation? Locally? Remotely?

    March 5, 2014 at 8:52 am #4602

    David Crabill
    Keymaster

    If you’re offering the item in-person after receiving a donation for a nonprofit, then there may be an exemption for you: http://forrager.com/faq/#nonprofit
    In that case, you should not be getting compensated in any way.

    Labeling it as a free gift doesn’t really change anything, since you can actually sell the item to raise money for a cause (under the above exemption).

    Otherwise, I think your food gifts would need to be legal in one way or another — either by purchasing commercial items, or by following the cottage food law. The latter option would not allow you to send the gift remotely.

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