Is it illegal to buy 33 cent candy bars at Wal-Mart and resell them for a profit for fundraising?

Question

We are looking into fundraisers for a non-profit organization and the typical box of candy bars that you buy requires a minimum purchase of 18 boxes. We are not sure that we can sell that many candy bars so I suggested that we go to WalMart, buy 33 cent candy bars, and resell them for a profit. This way we aren't tied into a huge amount of sunken costs and can just buy what we need as we need it. Someone told me that this plan is illegal. Is that true? It's illegal to buy something at one price and resell it elsewhere for a still reasonable, though slightly higher, price?

All of your opinions are very helpful... keep them coming please! Just to clarify, I'm not concerned because I think we'll get arrested or anything for doing this. I need to know if it's legal because the fundraiser is for our Hospital based school of nursing and the hospital, which is very conservative, has to approve everything and I don't want to be the one to start some sort of illegal fundraiser! They'll roast my @#$% ;o)

More opinions?

Answer 1

The key word here in NON-PROFIT!
If you are registered with the IRS as a non-profit organization, you are simply taking funds whether they be contributions of cash or merchandise, purchasing something else and selling it. Your goal is not to make a profit, but be able to use the funds to do what is written by your bylaws.

I.E. PTA uses the funds for purchasing school items for the good of the children

Answer 2

This Site Might Help You.

RE:
Is it illegal to buy 33 cent candy bars at Wal-Mart and resell them for a profit for fundraising?
We are looking into fundraisers for a non-profit organization and the typical box of candy bars that you buy requires a minimum purchase of 18 boxes. We are not sure that we can sell that many candy bars so I suggested that we go to WalMart, buy 33 cent candy bars, and resell them for a profit....

Answer 3

Fundraiser Candy Boxes

Answer 4

Yes it is. You have to be a registered reseller or a middle-man to resell things for profit.

This is necessery by the IRS so it can tax your profits. Contact Wal-Mart and ask them about that. Also, you might need a tax id to do your business.

Answer 5

I don't think it's illegal, because 1) Wal-Mart couldn't care less, and 2) You legally OWN the candy bar, so you can do with it whatever you want. Besides if it's a fundraiser I don't think anybody is going to call the cops on you!

Answer 6

It is not illegal. It does not matter if you are doing it for a fundraiser or not. That is the way business works, you buy something at one price and sell it for a profit. It does not matter if you buy it from wal-mart or directly from the candybar company. The only thing is you need to make sure you claim it on your taxes or the taxes for the organization.

Answer 7

I don';t think that would be illegal. Its what walmart does first. It's called capitalism. Tax wise though you may be in trouble you probably have to register as a non profit fund raiser. Or just do it and plead ignorance afterward. It is much easier to ask forgiveness than permission.

Answer 8

I sincerely doubt it....I've seen it done in so many forms. For one...people will buy a case of water and sell each bottle for a dollar at a little league game. But the case of water only cost about 4-5 bucks. Another scenario involves highschool students selling candy bars they bought in bulk for much more than the box cost at school.

Answer 9

No, it's not illegal to buy or sell anything (anything legal that is) for a profit. It doesn't matter where you buy it, how much you pay for it, and how much you sell it for. I don't think that candy is taxable because its edible although that may vary from state to state.

Answer 10

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