Donating to non-profit organizations in Los Angeles County, CA can provide a number of tax benefits. Items removed from resale inventory and donated to fraternal organizations are not subject to tax. Gift cards, gift certificates, and other donations are also exempt from taxation. Furthermore, non-profit organizations are exempt from paying business taxes if they are recognized under IRS Section 501C and State Tax Section 23701d.
This exemption is authorized by state legislation, allowing the City of Los Angeles to grant businesses a gross income tax exemption when they are recognized as a non-profit, charitable, or religious organization under IRS Section 501 or State Tax Section 23701d. Non-profit organizations from other states attending conventions, meetings, or workshops in Washington can take advantage of the Finance Office's three locations in the city of Los Angeles, as well as its virtual public counter. Additionally, non-profit organizations can grant their suppliers a resale permit for items that they are going to resell in the normal course of their business or as part of a qualifying fund-raising activity. The City of Los Angeles amended Section 21.22 of the LAMC to authorize the Director of Finance to issue a tax-exempt registration certificate to charitable, non-profit, or religious institutions when these institutions are entitled to an exemption under state or federal law. Non-profit organizations must collect and remit retail sales tax on their sales of retail goods and services. However, qualifying non-profit organizations building a qualified facility can issue the CDTFA-230-C-2 exemption certificate for the property used in the construction of a qualified facility to their suppliers to purchase qualifying construction materials and supplies.