Legal Question in Business Law in Virginia

For-profit soliciting funds?

My mother owns a politically oriented, family operated, sole-propiertorship in Virginia which lobbies congress, publishes a newsletter and has a website where small items such as promotional logo mugs and tee-shirts are offered for sale - gross of less than $2000 per year on sales. Some items are actually distributed from Arizona. So far, the organization has existed solely on contributions, which it requests through the newsletter and website.

1. Are we allowed to solicit donations by mail? (We publish a disclaimer making it clear that deductions are NOT tax-deductible.)

2. The state laws requiring organizations to register to solicit funds seem to only apply to non-profit charities - is that true, or do we have to apply in all states?

3. When we sell our small items online, are we required to pay sales tax? If so, to Arizona or Virginia?


Asked on 10/04/07, 11:34 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: For-profit soliciting funds?

1. Your mother's for profit operation(even though very small)

would appear to be governed by the rules that apply to any other such business operated for profit. You should check with the USPS regarding the solicitation of donations for this particular for profit business.

2. If you're required to register with the Commonwealth to engage in such solicitation, it would appear highly unlikely that it would be necessary in other states.

3. Any sales tax due would be due in the state where the business is licensed(presumably the Commonwealth)and from which it does business.

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Answered on 10/14/07, 11:05 am


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