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Church with Thrift Shop - jeopardy of 501(c)(3) status?

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Nonprofit and Church Legal Trends - Free Edition - January February 2007 (free edition)

If a church has a thrift shop that brings in $1200 a month but does not collect sales tax, is the 501(c)(3) status in jeopardy?

There are two separate issues here. Ordinarily an organization that is exempt from paying state or local sales taxes on items that it buys but is not exempt from collecting sales taxes on items that it sells.