Reimbursement Policy
Kutz Home & School Association is registered as a charitable, nonprofit, tax-exempt 501(c)(3).
Our association is organized and operated exclusively for exempt purposes set forth in IRS section 501(c)(3). It must not be organized or operated for the benefit of private interests, and none of its earnings may inure to any private individual. Our H&S Association is also Pennsylvania sales tax-exempt.
What does it mean to be tax-exempt?
H&S can accept tax-free donations to our organization. Our fall fundraiser is a perfect example. We, as an entity, do not have to pay federal, state or local taxes on any donations received.
What does it mean to be PA sale tax-exempt?
H&S does not have to pay Pennsylvania sales tax on ay purchases made for our organization.
How does the sales tax exemption affect my committee making purchases?
Because H&S is exempt from paying Pennsylvania sales tax, H&S cannot reimburse any tax paid on purchases. You must notify the merchant that you are making a purchase for a tax-exempt organization and show proof of our tax-exempt status.
How do I show proof of our tax-exempt status?
You simply show the merchant the PA Certificate of Exemption form (found in the reimbursement policy link above) or provide the merchant with the Account ID number: 75-514402.
What can I use the tax-exempt certificate for?
You may use the PA Certificate of Exemption certificate only when making purchases for H&S.
Example: Your committee would like to purchase coffee and bagels for Kutz staff.
1. You go to the store and purchase the coffee and bagels. At the checkout, you notify the cashier you are making a purchase for a non-profit, tax-exempt organization.
2. The cashier will ask you for the certificate or the account ID number.
You may not use the tax-exempt certificate when purchasing other items that are not for H&S.
Example: Your committee would like to purchase coffee and bagels for Kutz staff. While you are there getting coffee and bagels for H&S, you also decide to purchase a small coffee, breakfast sandwich and a granola bar for yourself.
1. You pay for the items separately.
2. One bill should have the bagels and coffee for H&S for which you can use the PA Certificate of Exemption and not pay any sales tax.
3. The other bill includes the small coffee, breakfast sandwich and granola bar that you purchased for yourself. You must pay PA sales tax on the personal items. You may not use the PA Certificate of Exemption when purchasing personal items.
What happens if I use the tax-exempt certificate to make a personal purchase?
Use of the certificate for personal purchases will result in cancellation of exempt status.
How do I get reimbursed for my purchase?
Within 30 days of purchase, you must submit the reimbursement form which can be found on the Home and School page of the Kutz website.