Below is a list of frequently asked questions about operating a registered charity in Connecticut:
How does my charitable organization become exempt from paying Connecticut tax on purchases?
State of Connecticut tax matters, including exemption from paying sales tax on products purchased by a charity, are handled by the Connecticut Department of Revenue Services.
My organization wants to hold a game of chance?
Registering with the Department of Consumer Protection to solicit funds, or claiming an exemption from registration, is unrelated to being permitted to conduct games of chance (i.e. raffles, Las Vegas nights). Connecticut law allows certain organizations to conduct games of chance, such as raffles, bazaars, and/or bingo nights. Permits are required. Inquiries and permit requirements regarding games of chance should be directed to the municipal offices in the town where the event is to be held.
My organization wants to hold an auction, do I need a permit for that?
The Solicitation Act does not regulate the type of fundraising an organization conducts. Fundraising can be anything from a lemonade stand to a raffle, to whatever creative idea an organization may have. The organization may need to contact their town, or the local or state police for more information regarding requirements or restrictions.
My charitable organization wants to hold an event and sell liquor?
As a charity, you can apply for a temporary liquor permit from DCP's Liquor Control Division for your event. The proceeds of the event must be used to support the tax-exempt activities of the noncommercial entity. If no money is collected, the event must still support the mission of the entity (for example, raising awareness about the entity’s activities) Learn more about temporary liquor permits
I want to fundraise or hold a fundraiser for a charity, do I have to file anything with Public Charities?
No. For example, you own a for-profit restaurant and want to give half of all proceeds on Thursdays to X charity. In order to fundraise for an existing charity, the restaurant would need to have the charity’s written permission to use its name. Most often, charities have development offices to assist volunteer fundraisers. Such a volunteer does not have to file anything on behalf of the charity, but he or she should make sure the charity is registered with Public Charities prior to any type of solicitation.
I want to run a charitable campaign at my for-profit business that will benefit a charity, do I have to file anything with Public Charities?
Yes. This practice is known as a Commercial Co-Venture. A written agreement between the for-profit business and the charity would have to be filed with this Department not less than 10 days prior to the start of the charitable sales promotion. The agreement and its terms should be signed and agreed to by the for-profit business and the charitable organization and should be emailed to dcp.charitiesenforcement@ct.gov .
What is an example of a Commercial Co-Venture?
I have a for-profit business selling skin creams, lotions, oils etc to the public. I would like to donate 15% of my overall sales to a Connecticut registered charity that raises money for skin disease prevention and cures. I would need a written agreement with the charity to use their name in any promotion.