Selling products through Fundraisers

JBSurfs

I have a product that I'd like to try selling through fundraisers. The idea is to have the product ordered online, they list their school. At some point it closes, I ship the total to the school or organization, I send the school a check for x amount, like $8 per item ordered. 

So, if I go this route, I am having a lot of trouble getting answers. 
Is this legal? How do I record the amount to the school? Does this provide nexus for other states?  

Looking for for anyone else that has sold this route. Also, what paperwork would be needed between the organization and my company. 

Ryan O'Bleness

I wish I had more answers for you, but I did stumble upon this legal company in Maryland called Labyrinth, Inc. The company seems to specialize in fundraising and help clients stay in compliance with state regulations. From a quick glance, it appears a lot of their dealings are with charities, but I am sure they would be able to answer your legal questions regarding school fundraisers. 

With that said, I have never been in contact with this company and I have not seen its work firsthand, so this is not a referral or recommendation from me, but rather I am just trying to give you ideas. Let me know if I am way off base here. 

https://goo.gl/C7Eki2

gambit

1.Identify the people who will be buying the product, and choose a product that they will be likely to buy. For example, if you are selling a product for a school fundraiser to spruce up the playground, pick a family-friendly product like photo albums, cookies or toys.

2. Publicize the fundraiser in a local newspaper or magazine. Call the appropriate editor and briefly explain the fundraising effort. The best-case scenario would be for the paper to send a reporter and photographer to the school and write a story about the fundraiser to generate interest. If you have to take out an ad, keep the copy short and to the point, tell people where they can buy your product and why it is important.

3. Decide on the marketing methods you will use. If you decide to go door-to-door, make sure an adult accompanies a child for safety. You might want to create a promotion, like "Buy Three and Get One Free." Setting up a table during parent conferences, at the mall or in front of the supermarket can also bring in the bucks.

4. Make use of social networking websites to create a “buzz” about the fundraiser. Be upbeat and positive about the proposed playground, and ask for support. Use video websites like YouTube to explain the fundraising project.

5. Put up posters and banners around the school and elsewhere to announce the fundraising 

saravanan

Fundraising is technically selling. But rather than selling a product, fundraising is about selling equity. There are many common elements: prospecting, qualifying, sales cycle, contract negotiations, etc.