Why Can't We Price Items in a Rummage to Benefit a Friend?

thats ridiculous. you can tag the items with a "suggested" price. I know of no law preventing that. Profit or non profit. You co worker seems ignorant...

Tell her this is not an auction, its a rummage sale. Price accordingly and have a sign that says all proceeds go to so and so

I'm not an expert on this but here's my input.
Does she mean a 501 c-3 non profit? I don't think she is correct though. Rawhide Boys Ranch in New London WI is a 501-c-3 non profit organization and charges $2,500/month to send you son there to get help. So does Boy's Town.

You need to speak to someone at the IRS or an accountant.

I have worked in the non-profit sector for over 15 years. A 501(c)3 can price items for sale for fundraisers - they do not have to give it away it someone asks for it.

I would suggest you have a benefit at a local civic center, take the nicer items, and hold a silent auction or garage sale there. Take your nice clothing with tags still on it to the local consignment shop, let them sell it, then donate the money to your friend.

Go talk to a local bank and set up an account for her - people could make donations directly to the bank account.

So many ways to raise money!
PM me if you want help.

God Bless

Can you just have your own garage sale and then give her the profits from that?
Not for profit does not mean "rob me blind". Sell it on your own!

This isn't an auction with no minimum bid.
Your assistant director is either misinformed or plans on buying up a lot of bargains at almost give away prices.
Once you donate something, it's out of your control how they sell it, but if you sell it yourself, you can manage your sale as you see fit.

Ditto Laura U. That concept is ridiculous and you are totally in the right.

You may get one greedy selfish person at that sale who buys everything at first sight for nothing. Who wins? No one.

Do your own sale. Never heard of such a thing. I understand her point about not for profit, but come on.
You are right to be hesitant.

Only because its being held on the property of the daycare or associated with it. My advice would be to hold the sale on someone else's property close by and dont put down that its being sponsored by the daycare. You can put down that the proceeds will benefit a staff member that has cancer. etc. I hope this helps! My prayers are with your co-worker!

A non-profit 501 c-3 can price their things. However, if a person wanted something for free (like a book), they are supposed to give it to them (not sure if that is in every situation or not). I don't think you are running a 501 c-3, so these stipulations don't apply. The person is misinformed, I believe. People do fund raisers all the time, and price whatever it is they are selling/doing (car wash) at a price, stating that all procedes are going to whatever charity/organization. Yeah, she's way off. You are doing a rummage sale. People expect prices. Even if you all decided to keep the money and go to Vegas, you aren't doing anything wrong. It's a rummage sale. :)

It doesn't make since, I'm pretty positive she's very wrong. Perhaps she is saying this to get out of paying taxes on the sale, but I'm pretty sure that taxes wouldn't be applicable on a charity fund raiser on used items. I've seen many churches and benefit sales for medical bills and such in which items were priced. Perhaps she doesn't understand how it works and is being extra paranoid? As for the big screen tv idea... there is no reason something like that couldn't be auctioned off... do a silent action where people bid up. I would call an accountant to be sure.

I think she has her information wrong. I have been to lots of garage sales for non-profit causes and items are marked with prices, so this should not be a problem. However, if you are going to raise a lot of money to help this family, you may want to set up a bank account at a local bank for donations and check into a 501c3 status. Ask the bank. You may not be able to set up a non profit to benefit just one person. People can give money to support the cause, but it may not be tax deductible.

I think she's dead wrong. When we do fundraising for schools, sports teams and other organizations (all non-profit) we can and certainly do set prices on things. Our church (non-profit) has a bazaar in the fall and I can assure you that everything has a price. Perhaps it makes sense to go with a silent auction for at least the larger items instead. That way you can set a minimum price and pick the highest offer as the buyer.

I haven't ever heard of that. Most places that have these sales - especially in order to help someone out - has most stuff priced. Especially the big stuff. Good luck with your sale !

I'm confused. It this being organized by the daycare itself or are you are individual people coming together to have a sale and donate the proceeds to your friend? If it's being organized by the daycare, why don't you switch it to where it is your sale and you set the prices? If you just happen to hold it in the parking lot of the daycare, so be it. It doesn't make sense to me either what the assistant director is saying.

I personnaly WON'T buy things at a sale if the prices AREN'T marked, I hate asking what the price on everything is, don't feel comfortable making an offer without a starting point and feel that the person having the sale is sizing up what they THINK each person can afford and telling them that price. PRICE EVERYTHING it makes it much easier on everyone and will maximize your profits. I have been a part of several benifit sales and you can and should price your things. I think your boss is thinking of an auction which is TOTALLY different than a rummage sale. If she won't budge on teh price thing then I would suggest (as others have) to host your own sale and donate your profits to your coworker. good luck.

That's crazy! We are a non-profit, on our last day of a huge rummage sale, and we priced everything! maybe it just has to do with the particular method she chose to use...?

Odd. My church prices things at their rummage sale and it's a non-profit. Can you put "suggested donation" on the item and maybe label everything with the ribbon for her particular kind of cancer (get some Avery labels or something) to encourage people to donate the full amount? You might also encourage people with high-ticket items to sell them somewhere else and donate the funds.

Alternately, have the sale somewhere else not associated with the daycare. See if a church would loan you their property for the event.

Pretty sure that's wrong. My family is extremely active in the Relay for Life, a fund raiser for cancer research, and they price all the items that they sell. They have garage sales, candle sales, Tastefully Simple sales, etc. I've also been to many many many rummage sales where the benefits go to a non-profit organization. Everything is always marked. It's not against the law. The only thing I can think of is if maybe she's thinking of a silent auction. At an auction, you sell it for what is offered, even if it's $1.00.

My sister and I did a garage sale to benefit a breast cancer walk that we were doing. We priced everything, then at the end of the day, we just gave away what we had left with a donation. I'm not sure what your director's reasoning is, but I won't buy things that aren't marked either. I'd question her on where she heard that and explain that it isn't the case. (I'm in WI too, so I know it isn't the law here.)

I agree with Lisa and Laura...have your own sale!!!! Love and hugs to your coworker.

Every "not for profit" fundraising sale I have worked for or gone to has prices on the items. The assistant director is full of it.

I would think that for a fundraiser like this, you can price things how you want.
There was recently a huge fund raiser in my town for a student who was in a bad car accident - with 4 days or so a huge event was put together - spaghetti dinner (tickets were $8); silent auction, raffles, bake sale and more ... they raised over $21,000 (during a 3 hour event!!!!!)
I havent' been involved in a rummage sale for this myself, but I also know of a group in my town that is volunteer, non profit ... just people helping animals. they do a few rummage sales and i think they price things.
Good luck!

Since the day care is "sponsoring" it - you have to go with their rules.

If you would like to host your own benefit - I believe you can without having to get "incorporated" and claim taxes and such...

however, the problem you run into is people wondering "is this a scam"? why and how? all the fly by night operations that have come up getting money for the Joplin victims, Katrina, the list goes on and on...many have said they were donating all proceeds from a rummage sale to the charity...but it didn't happen!!

Some bad apples can ruin it for everyone!!

The day care is non profit and they will not be profiting from the sale, I take it all the money will go to the friend with cancer. None if this should even go through the day care books. We use to sell baked goods as a fund raiser for the day care I worked for. The items were priced and the money went into the day care. I don't see how putting on a fund raiser would be any different. The people buying cannot claim they gave it to the day care and write it off the taxes though.

I think she is incorrect. When I was on the Board for Big Brothers/Big Sisters we had sales like this and always priced everything, a bit high in my opinion but it was for charity and a lot of people would not bat an eyelash.

I think if this is how she is going to handle it I would get the sale moved away from the center immed. and call it something else besides child care center XXX fund raiser for XXX, It can just be a group of friends getting together to do a fund raiser for XXX.

We also have sales for BMX, Habitat for Humanity, all kinds of no profit organizations. I really think she is incorrect, like an old wives take carries a lot of weight but isn't really right.

If it comes down to it move it.

My husband used to work for the Aids Resource Center of Wisconsin and they had a series of rummage sales to raise money for their services. Each person who hosted a rummage priced everything as they saw fit and it was publicized that the money was going to ARCW. We never heard anything about having to take whatever someone offered us. Good luck with the sale and with your coworker. I hope the sale is successful and helps to lighten the burden of what she's going to be going through.