"You want a cake? Sure!
Person A, bring me 2 pounds of butter and 4 pounds of powdered sugar; Person B, bring a dozen eggs and a gallon of milk. Person C, you're responsible for the flour and white sugar..." heh, heh
I'm not 100% sure but I believe accepting ingredients in exchange for a cake is considered the same as accepting money for a cake which is illegal (selling cake out of your home) for many of us in a variety of states. Be sure to check your local regulations!
If my friend offered to donate some butter or sugar towards a free cake that I'm making, that might be considered illegal? Bringing butter or sugar or whatever ingredient, would be the same as contributing to a pot-luck or neighbourhood BBQ where family and friends all bring a dish, or they bring an ingredient that might go into or along with one of those dishes. I can't see that being illegal anywhere.
If my friend offered to donate some butter or sugar towards a free cake that I'm making, that might be considered illegal? Bringing butter or sugar or whatever ingredient, would be the same as contributing to a pot-luck or neighbourhood BBQ where family and friends all bring a dish, or they bring an ingredient that might go into or along with one of those dishes. I can't see that being illegal anywhere.
I'm basing my response off discussions in several different threads...
http://forum.cakecentral.com/cake-decorating-ftopict-682344.html
http://forum.cakecentral.com/cake-decorating-ftopict-680890.html
( I know it's come up more often than that but the search is not letting me go beyond one page of results)
But what it boils down to is it varies from state to state. Some states take a very hard line and some allow just about anything.
That's a good point - where is the line? Doing a search on it...
http://cakecentral.com/modules.php?name=Forums&file=viewtopic&t=647339&postdays=0&postorder=asc&highlight=trouble&&start=75
itsacake posts that in San Jose, California quote:...
However, I called the Health Department frequently during those four years trying to figure out a way to be legal. Three or maybe four different inspectors in two different counties basically told me that if I wasn't running a business I would be fine to sell to my family and friends. One inspector even told me that if I baked in my synagogue kitchen (which is unlicensed) and sold only to synagogue members, that that would be fine because it would be the same as selling to the family since we are all voluntarily a "group." Clearly the departments here recognize that they are here to regulate business and they don't consider being reimbursed by or selling to your "family" a business... :unquote
If my friend offered to donate some butter or sugar towards a free cake that I'm making, that might be considered illegal? Bringing butter or sugar or whatever ingredient, would be the same as contributing to a pot-luck or neighbourhood BBQ where family and friends all bring a dish, or they bring an ingredient that might go into or along with one of those dishes. I can't see that being illegal anywhere.
I'm basing my response off discussions in several different threads...
http://forum.cakecentral.com/cake-decorating-ftopict-682344.html
http://forum.cakecentral.com/cake-decorating-ftopict-680890.html
( I know it's come up more often than that but the search is not letting me go beyond one page of results)
But what it boils down to is it varies from state to state. Some states take a very hard line and some allow just about anything.
What I read on the links: if someone pays a person money for the ingredient it could maybe once in a blue moon, cause problems.
I'm referring to what the OP mentioned, asking a person to donate some butter or sugar or whatever other ingredient to help the cake baker who's making the free cake out. The cake being made would most likely be going to a family get together, or a party with friends so what harm would that be?
It would be like going to your girlfriends house for an all girls fun night. Everyone thats going pitches in towards the goodies.
How could that possibly cause a problem with the health dept?
well im screwed. haha.
i do it for girls nights all the time. ie we are having a chirstmas in july party, im doing the cooking, my girls are giving me money for it.
i also get money to cover ingredients for my cakes.
if there is a health inspector wasting his time on that.. then there are issues. its clearly not a business if you are not making a profit.
but yes, i understand that there are some health inspectors out there like that, its just seems very up tight... its like a coppa is able to use discretion if issuing a fine..
I know what you all mean. I had such a difficult time trying to figure out pricing on my unique designed cakes that I would always feel bad about the cost that I was charging.
One day I was looking to see what supply or accounting software they use and found CakeBoss, this is a software program that helps me figure out the cost of ingredients, supplies and also takes into account hours that I put into each cake. It also provides spreadsheets and quote forms that I use to show my customers the exact cost I charge for their particular cake. I also like the software feature that allows you to put your recipes in and it makes it easier to multiply the batch without really thinking.
Like you I no longer worry about whether I am charging too much, because the honest truth is, if my customers feel I charge too much, its ok for them to walk away. I only do cakes at the price I know they should be charged, the price should cover the ingredient cost, and time I put into it. Their site is at www.cakeboss.com
Brandee Beavers
its clearly not a business if you are not making a profit.
This line cracks me up everytime I hear it. It's WELL known that most businesses do not make a profit the first 3 and sometimes up to 5 years of being open. General Motors certainly was considered a business and I think I heard they filed bankruptcy?? 
If you are not making a profit, it's "clearly" a case of the owner not doing things right, not understanding how to set pricing ..... or that it's a new business. It's NOT "clearly not a business" just because it's not showing a profit.
I'm referring to what the OP mentioned, asking a person to donate some butter or sugar or whatever other ingredient to help the cake baker who's making the free cake out. The cake being made would most likely be going to a family get together, or a party with friends so what harm would that be? It would be like going to your girlfriends house for an all girls fun night. Everyone thats going pitches in towards the goodies. How could that possibly cause a problem with the health dept?
The Devil's Advocate question is where do you draw the line? Maybe it's ok to accept donations from various people as in a "pitch-in" mentality. What if donations are accepted from non-family members? From jsut one person? What if the donation is a gift card to Hobby Lobby? Is a $10 gift card ok? What if it's $100? What do you call a donation? Did you return the 2 leftover eggs or did you "profit" 2 eggs from this transacation?
Where do you draw the line?
Forget the supplies (well not really, but...), I wish they would say, hey, make a cake, and I'll come and wash all your greasy pans and cake decorating supplies. I am a bad time manager so 99% of the time I end up doing the cake at the last minute or all through the night before (usually both), so the second the cake is done we are in the vehicle on the way and all the mess is left. And left. And left.
I actually have the name and phone number for the public health inspector, so one of these days I'll call and find out. I saw her as she was going to do the inspection for our playschool, though, and she struck me as being a letter-of-the-law sort of person.
In my dream world, I would get cost of ingredients and cake requester would come and get my kids for as long as the cake took. Bet they would only ever ask once.
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