If I make cakes for family and friends, but do not charge, can people give me "donations" and it be legal without a license? I'm just getting started with cake decorating, and would probably make 1-2 cakes per month for people I know. Those people have said that they would like to reimburse me for my time and effort, so can I just ask them to make a donation that they feel is appropriate?
Anytime money exchanges hands for services regardless of whether it is for ingredients or not, it's considered a "sale" therefore still making it illegal. As far a "donations" as far as I know, you need to to register your biz to accept such.
So is it illegal to participate in a church bake sale, etc.?
Anytime money exchanges hands for services regardless of whether it is for ingredients or not, it's considered a "sale" therefore still making it illegal. Selling cakes for profit (your own) is illegal.
If you are "donating" cake cake for a church or PTA bake sale and not receiving compensation for it, then it is considered "legal". It's when Father OBrien slips you a $20 for a cake that it's illegal.
OK, just trying to take all this in and understand it completely. So, DIFFERENT scenario, but still getting money for services, what about a babysitter?? They are receiveing money for a service, and that is not considered illegal, is it? What is the difference? I understand if you are making cakes for a living and such, but when you're making 1-2 a month for a church or something? I don't see the "illegality" (ha is that a word?) of them offering you some cash for you time and ingredients.
The problem is that we are talking about food here, a baby sitter doesn't have to worry about food pison or other food matters, that's why is so hard to obtain a license and imposible to bake from home for business pourposes. I know how you feel, but unfortunately we just have to do it for fun. I guess if you give it to a friends a that friend gives you a donations I think there is not much risk on that, but if you give it to a church and that church give you a donation I think there are more chances of getting caught by the health department and I read here in another post that the fine is about $5700 and 12 months of probation.
I would say this is walking in thin ice.
I'm sure the law is different in every state. I would look it up or call your state's appropriate department and ask. You can remain annonymous and get information that you know is accurate.
but if you give it to a church and they do not pay you for it, the health dept can do nothing to you? it all seems a little overobard just for a donation of 20 bucks here and there. i understand, it's just weird. oh, and in reference to the babysitting thing, i was simply responding to the earlier comment of "Anytime money exchanges hands for services regardless of whether it is for ingredients or not, it's considered a "sale" therefore still making it illegal."
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