Frequently Asked Questions
Q: I don't see the option to choose an Exemption Reason. Where can I choose my reason for exemption?
A: If the Exemption Reason is not showing on the Sales Tax Setup page, then your payment account is not set up as a tax-exempt organization OR your state does not allow for sales tax exemptions. If your state allows for exemptions and your payment account is setup incorrectly, there are two options for you:
- Setup a new payment account (Financial > Payment Setup > Create New Account) and make sure the funds are paid out to “501c3 and other nonprofit”.
- Upload 990 filings and the IRS letter so that our team can change the legal entity type for your existing payment account.
Q: My organization is exempt from paying sales tax; why is our event collecting sales tax?
A: Please know that nonprofits who have certificates of exemption are, in almost all cases, exempt from paying sales tax on items they purchase. However, events on RunSignup/GiveSignup are the seller, not the buyer, and are not necessarily exempt. Please see our Taxability Matrix to determine if your state offers any exemption or what is taxable.
Q: Do I receive the sales tax and remit it to the state or are you collecting and remitting to the state on my behalf?
A: At this point, all states that collect sales tax require "online marketplace sellers," like RunSignup, to collect the sales tax and remit it to the state on your behalf. If you need to prove to the state that sales tax was charged and collected, you can show them the sales tax summary report in the dashboard (Sales Tax >> Sales Tax Reports) and explain that RunSignup, as the marketplace seller, handles this on your event's behalf.