After speaking with my tax guy Tom, we came to the conclusion that what we are doing now does not qualify for tax exempt status with the IRS. What that means is that although we are operating as a nonprofit in the State of Washington, we would not be eligible to offer a tax deduction for donations or apply for federal grants for funding. Without that tax exempt status, we cannot continue to operate in the same manner as we have for the past 6 months.
So, we have decided to go another route and become a regular for profit business. We will be modeling our business after a consignment shop, but continue to offer a more valued service by trading at equal value and keeping our trading fees low. All the changes will take effect in October. The October schedule will be out soon!
There will be changes to the point value system, where items of the same category will have different point values based on size. For example, a pair of size 5T jeans will have a greater point value than a pair of size 0-3 month jeans. This will give parents with older children more credit points to spend and it will reduce the number of points needed to purchase infant items.
Another big change will be that all of the clothing items will now have "point tags" on them. You'll be able to shop knowing how many points you are spending without having to worry about having enough at checkout! Plus checking out will be a lot faster since we won't have to sort through all of the clothes and plug them into the system.
We will also be discontinuing trading the following items UNLESS they are part of a set:
- Socks
- Hats
- Bibs
- Mittens (Winter Gloves are Okay)
- Onesies that are LARGER than 12 months
- Larger bedding such as crib sets and large afghans (NB blankets and Swaddlers are Okay)
- Shoes larger than toddler size 11
The last few changes will be on our "trader's" end! Yes, that means you! Real simple and a lot of you already do it, so don't freak out! When you bring your items in for trading, they MUST meet the following additional criteria or we will ask that you come back to trade on another day. To read over how to trade, which has the complete listing of trade requirements, please click on the tab at the top of the page labeled "How It Works".
- Clothing must be separated by size. This is a big one! Since points will now be based on the size as well as the category, the different sizes must be separated before trading. If you do not separate the sizes, you can still trade that day, however, everything will be given point values according to the smallest size in the box. Shoes can be bunched together and we will go through them according to a generic size chart.
- Sets must be put together. Certain items are now no longer going to be traded unless they are part of a set. To ensure that we assess the correct point value for your items, please group all of the pieces for your sets together.
- We will only take ONE box of clothes per customer per trading day. If you have tons of clothes that you want to trade, you will need to bring them in one box at a time. We cannot make any exceptions.
As always, Happy Trading!
~Michele
No comments:
Post a Comment