Baking Cupcakes For A Charity?

Baking By stevieleannescupcakes Updated 21 Jul 2011 , 7:27am by scp1127

stevieleannescupcakes Posted 1 May 2011 , 4:32pm
post #1 of 27

Hello there follow cupcakers icon_smile.gif

I have been thinking of raising some money for my local hospice charity through the power of cupcakes!

I am just wondering if you can give me any advice on the best way to go about this.

At the moment I am pretty low on cash myself so I cannot afford to give all procedings to the charity so it looks like it will have to be just the profit made that will be donated. Is this the best way?

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26 replies
Paperfishies Posted 1 May 2011 , 6:40pm
post #2 of 27

I'm sure someone will come in with more information...but if you aren't legal to sell goods (meaning the health department hasn't come to inspect where you will be making the cupcakes) money can not be exchanged, at all.

If you are only selling the cupcakes to really close friends and family, I don't see the big deal.

stevieleannescupcakes Posted 1 May 2011 , 7:15pm
post #3 of 27

I am registered as a small cupcakes business so everything is in order for that icon_smile.gif
I would just like some advice or for somebody to share experiences of selling cupcakes for charity icon_smile.gif

LindaF144a Posted 1 May 2011 , 7:47pm
post #4 of 27

So you are going to sell the cupcakes for "charity" but keep some of the money for yourself? Wow, how do you get away with that? I'm sorry I have had no experience, but all I can think of are the legalities of trying to set it up that you would keep a portion even though you told the public you are selling for a charity. And you should be completely honest with the charitable organization that you intend to keep a portion for yourself and have proof that the amount you hold back does indeed JUST cover expenes, otherwise it is income and subject to tax laws.

Wow, you are opening up a whole bunch of legal stuff here that I don't think you though about yet. I would be surprised of any place that would let you do that under their name and keep some of the proceeds. But I could be wrong too. It is just that if I was selling for charity, my time and goods would be part of the donation, whether I could afford it or not. To me it is a ethical matter and I would not feel right donating cupcakes to charity but taking some of the money for myself, no matter what it covered.

mamabaer Posted 1 May 2011 , 8:21pm
post #5 of 27

All I know is in Illinois you can make cupcakes for a bakesale (and all proceeds go to the charity), or donate them to an organization and they can sell them for cash but, you cannot collect any money yourself.

You don't have to be licensed as long as you do it one of the first two ways I mentioned. (this is what aggrivates me, they say it's for health code reasons, but they don't mind if a non-profit sells them...just me...like that makes my cupcakes safer to eat! But the law is the law!)

Maybe see if someone else can donate cash towards the supplies and then sell them with all proceeds going to charity.

Paperfishies Posted 1 May 2011 , 8:22pm
post #6 of 27

If you are licensed with the health department and licensed as a business, you could go around to different suppliers and ask if they could donate ingredients. That way you are not out any money and 100% of the proceeds can go to the charity.

I give to a few different charities and whenever I find out that 100% of the proceeds aren't going to the charity, I stop giving to that charity.

glow0369 Posted 1 May 2011 , 9:12pm
post #7 of 27

I give to charity All the time and a donation is a donation....where I live you do not have to be in business to donate..and you do not have to worry about inspections if it is non profit ...all profits must go to the charity. Keeping some money for your suppliies to me is really not a true donation...I feel everything should be a donation..supplies, time..ect. JMO

Kateb411 Posted 1 May 2011 , 9:15pm
post #8 of 27

"...so it looks like it will have to be just the profit made that will be donated. Is this the best way?"

It sounds to me that the OP was just looking to get back what it cost to make the cupcakes, no? Is that so unreasonable if she can't afford to donate the ingredients too? She's still trying to do a good thing.

MHCakes2 Posted 1 May 2011 , 9:46pm
post #9 of 27

I know a lot of people that do "all profits to be donated" to whatever charity. That is what it sounds like she is wanting to do. A lot of major restaurants do that, for the OP to give to profits to the charity, she would have to document what it costed her to make (these items would be expenses and wouldn't be taxable), then subtract that from the proceeds and that would give her the profits that she could give to the charity. I see nothing wrong with that, she is not taking anything from the charity, she is still giving them profits.

Marla84 Posted 1 May 2011 , 10:00pm
post #10 of 27

I agree with Kate - there's nothing wrong with taking out the money for ingredients and then donating 100% of the net proceeds. Profit is after expenses. Unless I read the post wrong, it doesn't seem that the OP is looking to make money, just cover the cost of supplies.

OP - call the hospice that you plan to donate to first if you plan to advertise the cupcake sale using their name. (i.e. if you are telling customers that proceeds benefit ___ hospice, you should get permission first) Good luck... I think it's a great idea!

KalliCakes Posted 1 May 2011 , 11:09pm
post #11 of 27

Why can't you let people know that x% of your proceeds will be donated? There are a lot of companies out there that say 10% of revenue is donated.

kimboann Posted 1 May 2011 , 11:24pm
post #12 of 27

Wow, I just clicked on this forum to see what kind of ideas were suggested and see that the first comment slams into the whole being licensed and legal issue. While I understand the importance of it it was not the question, but without fail every new forum topic someone has to say it. Are you as bakers so worried about others baking w/o a license, or being inspected as this is the first thing mentioned as if to say, "hey, don't forget if you're not licensed, no money can be exchanged. I wouldn't want you to sell something you're not allowed to." She's talking charity here people!

The last I checked bake sales have been happening for many years. I don't remember ever seeing nor asking if the person or group I was buying the cookies from had a license to bake. If you are planning on promoting your business (if you have one) at the same time that's different. Proceed accordingly.

Otherwise, bake your cupcakes. Sell them to whoever wants to support Hospice. Take your costs out and give profits to Hospice. Great cause! Great idea! good luck!

glow0369 Posted 2 May 2011 , 12:17am
post #13 of 27

I still agree with LindaF.... what have YOU really donated if you get your money back for supplies and time???

stufff33 Posted 2 May 2011 , 12:21am
post #14 of 27

I am with Linda and glow on this one.

LindaF144a Posted 2 May 2011 , 12:31am
post #15 of 27
Quote:
Originally Posted by kimboann

Wow, I just clicked on this forum to see what kind of ideas were suggested and see that the first comment slams into the whole being licensed and legal issue. While I understand the importance of it it was not the question, but without fail every new forum topic someone has to say it. Are you as bakers so worried about others baking w/o a license, or being inspected as this is the first thing mentioned as if to say, "hey, don't forget if you're not licensed, no money can be exchanged. I wouldn't want you to sell something you're not allowed to." She's talking charity here people!

The last I checked bake sales have been happening for many years. I don't remember ever seeing nor asking if the person or group I was buying the cookies from had a license to bake. If you are planning on promoting your business (if you have one) at the same time that's different. Proceed accordingly.

Otherwise, bake your cupcakes. Sell them to whoever wants to support Hospice. Take your costs out and give profits to Hospice. Great cause! Great idea! good luck!




Here in NY state, or at least in my county, bake sales of home made items are actually illegal unless you are licensed. Or if you do donate items to a bake sale, they must all be store bought.

So before you assume that "some bakers" are "so worried about taking away business" you should not assume that bake sales are legal in all areas.

They were banned for the very reason is because we did have a major hepatitis outbreak at an elementary school. It turns out there was a lady baking for the teachers, bake sales, etc who had the hepatitis and transmitted it to her baking. After that we now have a law banning bake sales unless it is made in a health department approved kitchen.

In fact the school district where I live does not allow any baked goods made from home, they all must be store bought.

So for someone to state that hopefully she is licensed it could be entirely possible that she also lives in an area where bake sales of home made products are also banned.

Kristie925 Posted 2 May 2011 , 12:48am
post #16 of 27
Quote:
Originally Posted by glow0369

I still agree with LindaF.... what have YOU really donated if you get your money back for supplies and time???



I don't think she wanted to be paid for her time, just supplies. Which sounds fair to me. Time and skill are just as valuable!

Marla84 Posted 2 May 2011 , 1:01am
post #17 of 27

I guess I'm not clear about whether or not the OP is asking for money back for time. I read it as money back for ingredients/supplies which I think is totally appropriate, and pretty standard practice. Tons of stores/restaurants do this. (Look up Kohl's Cares for Kids...it clearly states that 100% of NET PROFIT is donated...or in other words, after expenses.) The only issue I would have is if the advertising is misleading, and from the OP's post I have no reason to believe that it would be.

Linda, do you have more information or a source for bake sales being illegal in NY? I've never heard that (not arguing, just curious) What county do you live in? I tried googling it and could only find that they were banned in NYC schools because of obesity.

LindaF144a Posted 2 May 2011 , 1:07am
post #18 of 27

It does vary from county to county. I have no idea where you can look it up online. There are lots of laws on the books that are difficult to find with a Google. I wish it were that easy. But I am finding out the hard way that it isn't. The best thing to do for your area is to call your school district. I know you never, ever see advertisements for bake sales anywhere here any more.

I only know what the law is my county. I live in Monroe County. I found out about when my DD, now a junior in college, was in high school. The DOH or someone came to the school, a private one, and told them they could not do it any more. That is how I found out. Because I didn't have any kids in the public school system I did not know about their rules until I heard it from a couple of my friends.

SecretAgentCakeBaker Posted 2 May 2011 , 1:50am
post #19 of 27

Since you have a business, you can do something similar to what Krispy Kreme does for fundraisers.
http://www.krispykreme.com/fundraising/4-ways-to-raise-funds

You can partner with the hospice, even make up the flyers for them. They can either buy a bunch of the cupcakes from you for a deep discount and they can sell them at a bake sale, or better yet, do a presale. They can take orders for say 1/2 and full dozen cupcakes, maybe you can let people choose different flavors. People would prepay the hospice, they pay you your cost and they keep the rest.

There is always the coupon option. You could let the hospice sell gift certificates. You charge them 1/2 price (or whatever you choose) and they sell it for full price, or close to that.

Paperfishies Posted 2 May 2011 , 2:51am
post #20 of 27

It wasn't until I was actually knee deep in all the business aspects of opening a legit cake/cupcake business (I am now) that I understood why everyone on here talks about the legalities of being legal and makes such a huge issue out of it.

I'm glad to see the OP is legal. Working with the health department I have learned that if you get caught operating without the proper licenses they give you super fun fines and you end up with a "bad" record with them from that point on.

MANY, MANY,MANY people don't even realize you have to be legal to sell or even donate stuff (OP, totally not directed at you since you said you were legal). I post on a forum on Cafe mom and everyone of those people sell their cakes and aren't legal...It's kind of scary actually...It would be such a mess if someone got sick and blamed it on that persons cake. I totally admit that before I become legal I had no idea of the legalities and never really thought much about them.

Also keep in mind that for those people who have spent thousands of dollars on remodeling costs, attorney fees, etc just to become legal, it kind of burns their butts when someone isn't legal.

I would personally HATE to see someone with a passion for doing this get in trouble with the law for dodging regulations set forth by their state.

OP...Good luck with your charity venture!! You're doing a good thing and I hope it works out the way you want it to work out.

stevieleannescupcakes Posted 2 May 2011 , 5:02pm
post #21 of 27

I never knew I started such a debate!

Thank you everybody who has the sence to read my topic properly icon_smile.gif

I never said I was making ANY money off this sale, this charity is very dear to me and I would give 100 percent of my profit if not more if I could afford to icon_smile.gif

I will NOT be taking any money for my time, otherwise why would I be doing this.

I wanted to raise some money for a charity that is very close to my heart not make money off it, I just cannot afford to pay for the ingredients out of my own money. I do not see a problem here, I dont know why people are getting so touchy about it, it is raising some money at the end of the day is it not?

Thanks for the advice people, I will be getting in touch with the hospice to let them know about the cupcake sales, hopefully the sales will be happening soon, and to those wondering, yes, I am licenced to sell my cakes.

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Sangriacupcake Posted 2 May 2011 , 5:22pm
post #22 of 27

Stevieleannescupcakes, don't worry too much about the nay-sayers. I, too, like to donate cakes and cupcakes to my favorite local charities. In my state, it's perfectly legal for home bakers to donate to groups who sell them at bake sales and farmers' markets. It makes me happy that I can help out in this way. Good luck with your fundraiser.

Jennifer353 Posted 3 May 2011 , 10:26am
post #23 of 27

Stevieleannescupcakes, best of luck with your sale. I had thought of what someone else said but reading all the other debate in the topic I almost forgot again! Try asking for donations of supplies from local (or otherwise) companies. If you normally get your supplies from the same companies and have a rapor with them there is a good chance they will give you a free bag/box/whatever of some ingredients and that would help keep the amount you can pass on to the charity to the maximum.
Try asking lots and lots of companies and sure some will say no but emails cost near nothing to send and if you are in a store buying things anyway it would only take a couple of minutes extra to ask the manager if they would support your fundraising efforts. Even an unrelated company may be prepared to fund some of your expenses in exchange for a mention on the sale adverts.

traci_doodle Posted 20 Jul 2011 , 4:56pm
post #24 of 27

Sorry to resurrect an old, heated thread, but I have a question for Linda. I also live in Monroe county, NY, but my daughter's preschool holds an annual bake sale. It's a pretty big preschool, associated with a bigger company, so I would have thought they were more up to date with laws. Are you sure it's a county-wide restriction and not just with your school district?

AliBakes6167 Posted 20 Jul 2011 , 9:18pm
post #25 of 27

Man, some people need to pull their heads in! If someone can't afford to donate ingredients, but is kind enough to put on a fundraiser & put's all PROFITS (profit means $ that is extra, ie not spent on ingredients, overheads etc.) toward charity you should respect that. Come on people, don't be so rude - she's doing this from her heart. You should grab whatever is stuck up your @ss and pull it out.............in the nicest way possible ;D

Osgirl Posted 21 Jul 2011 , 12:09am
post #26 of 27

I don't think there's any problem with giving the legal/illegal warning on here, but there's always someone who posts that and doesn't answer the OP's questions.

I think it's great that you want to bake for charity. I see nothing wrong with getting money for ingredients. You are still donating your time and talent which is a lot!

In Minnesota you can bake for bake sales, etc...which seems so funny. I can bake and donate my baked goods, and then someone else can turn around and sell them-yet I can't sell them? Seems odd.

scp1127 Posted 21 Jul 2011 , 7:27am
post #27 of 27

Another aspect of the licensed/unlicensed issue: If you are unlicensed and wish to donate to charities, you still must check with your local HD. They will have specific guidelines that will need to be observed. For example, in our county, you must label that the item was baked in an uninspected home kitchen. You also cannt sell or donate "TO" the very old or very young, as they are the most succeptible to problems with food.

So the question of licensed/ unlicensed is most definitely relevant in a charity situation. Make someone sick and you will find out quickly.

OP, you may like to check out the site of a lady who has a cookie business solely for charity. Her site may help you formulate your plan:

http://cookiecrazie.blogspot.com/

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