Why do we have to charge sales tax if we are a nonprofit?

Oh, the question that drives every committee that has started a bookstore to its knees!

First, involve your church's business administrator in helping you understand your state laws. Each state differs on which items are taxable and which are not. While doing this homework, also read up on your state and city regulations regarding retail operations.

In most situations sales tax is due to your city and state if you resell product that was purchased at a non-tax rate. For example, if you bought 20 copies of The Purpose-Driven Life from Zondervan with your wholesale status as a retailer, you didn't pay tax on them. However, when you sell a copy of the book to Joe Black, he is responsible to pay the sales tax due on the book.

Greeting cards are an important part of the category mix for church bookstores. Many ministries and departments in the church use cards as part of their ministry. Church members also like to buy them to pass on inspirational thoughts and encouragement to friends and family. And with many shoppers buying gifts, cards are a natural add-on sales opportunity.

The first Church Bookstore Network (CBN) Regional Gathering for church stores and church libraries from Georgia, North Carolina and South Carolina will be held Friday, June 5, at Johnson Ferry Baptist Church in Marietta, Ga.

If you ask Herm Williams what he most wants people to know about him, he says, "that I love the Lord, and I love people." He is so gregarious, he claims he can "talk to a wall." I believe he has it right. The first thing I noticed about Her is how interested he is in people, how he pays attention when you are talking, how he looks you right in the eye as if you were the most important person he'd seen all day.

Herm is a Terry Moore & Associates Product Consultant. The company represents approximately 41 lines, five of which are geared to sales in Christian bookstores (including Gift Alliance, Plain Jane and DM Merchandising). Before he became a sales rep, Herm owned three Hallmark Stores in New Mexico; he understands customer service and delivers it consistently.

A message from Geni Hulsey, president of the Church Bookstore Network:

Do you ever feel like you are the only one who is struggling with knowing what to buy, how to create an effective product display or-well, you name the situation or problem? When I first came to this industry I was sure I was the only person faced with the myriad questions and concerns I had.

I realized a church bookstore does have issues that other retail stores just don't face, and I needed to be able to talk with someone who understood the particular issues of church-related retail. In 1991 there were few people to turn to, especially in close-enough proximity. So I went to Dallas, and spoke with the manager of the store at Prestonwood Baptist Church-at that time the store was about 500 square feet, the same size as the one I was establishing at Houston's First Baptist. I also spoke with the manager of the store at Second Baptist in Houston and she, too, was helpful.