Steps to Fill out Your Nonprofit’s W-9 in California

If your nonprofit receives a request for a W-9, completing it is straightforward compared to other tax forms. To make the process even easier, we've outlined seven simple steps to help you get started.

Steps to Fill out Form W-9 Write nonprofit's name Name organization's tax classification Double-check the "Exempt Payee Code" box Provide your nonprofit's mailing address Fill in the requester's name and address List account numbers based on the requester's directions Write your taxpayer Identification number (TIN)

Tax Exemption for Schools and Nonprofits

To learn more about how to handle your tax exemption situation, refer to the California Department of Tax and Fee Administration's Publication 18: Nonprofit Organizations.

1. No General Exemption for Schools

• Schools and school-affiliated groups are not automatically exempt from sales tax in California.
• However, if the group is considered a consumer rather than a retailer, the sale of DTF heat transfers to them may not be taxable.

2. Resale Exemption

• If the school group resells the printed graphic shirts and holds a valid seller’s permit, they may issue a resale certificate to purchase the DTF heat transfers without paying sales tax.
• In this case, they would collect and remit sales tax when they sell the shirts.

3. PTA & Equivalent Exemptions

• If the group qualifies as a Parent-Teacher Association (PTA) or an equivalent nonprofit authorized by school authorities, they may be consumers of the items they sell (such as the printed shirts).
• If they qualify:
  • They pay sales tax when purchasing DTF transfers.
  • They do not collect tax when selling the shirts.

4. Nonprofit Status & Fundraising Exemptions

• If the group operates under a qualified nonprofit status (e.g., 501(c)(3)), there are potential exemptions for occasional fundraising sales.
• This depends on:
  • The frequency of the sales.
  • The purpose of the sales (e.g., if sales are for fundraising and meet exemption conditions).

5. Key Considerations

• If the group sells shirts regularly, they likely need a seller’s permit and would not be exempt from sales tax.
• If they qualify as a consumer (like a PTA or nonprofit group in certain cases), you must charge them sales tax on the DTF transfers.
• If they provide a valid resale certificate, you do not charge them sales tax, but they must collect tax when selling the shirts.

Disclaimer:
The information provided here is for general informational purposes only and should not be considered legal, tax, or accounting advice. Tax laws and exemptions vary based on individual circumstances, and we do not guarantee the applicability of any tax exemption to your organization. We strongly recommend consulting with a qualified accountant, tax professional, or the California Department of Tax and Fee Administration (CDTFA) to determine how sales tax laws apply to your situation.

For official guidance and assistance on sales tax for nonprofits, you can contact the California Department of Tax and Fee Administration (CDTFA):

📞 Customer Service Center: 1-800-400-7115 (CRS:711)
📧 Email Inquiry: CDTFA Contact Form
🌐 Website: www.cdtfa.ca.gov
📍 Office Locations: Find a CDTFA Office

Their representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific Time), except on state holidays.