Someone contact me from my neighborhood to donate 100 cupcakes for a fundraiser and promote my storefront business, but when I call back to set up all details, she tells me that there's going to be another lady bringing 200 cupcakes to promote her business and she told me she's an illegal home baker.
well I'm sorry but now I don't want to do it anymore, I don't think it's fair to me...what do you think? should I even care?

I think you should be the best you can be and don't worry about the other person.

I'd gently mention to the chairperson of the fundraiser that since she's promoting/endorsing an illegal biz, she needs to take out extra liability insurance for the event.

I agree with Audrey. My only concern would be whether or not the patrons can easily tell the difference between your product and the others.

If I were in your position, I would need more info before I came to any definite decision about participating....

Is the "someone" who contacted you involved in the fundraiser in an official capacity? And is being licensed a requirement for this fundraiser (see below). If so, then why did this "someone" or someone else involved in the fundraiser invite the unlicensed baker to participate? (And if the other baker volunteered without being asked, why didn't the fundraising committee decline the generous though inappropriate donation.)

Is this fundraiser a high profile event with professional fundraisers/sponsors or is it a fundraiser/small charity event like a bake sale run by the PTA or the family of fundraiser beneficiary or similar situation.

The legal ramifications and food safety expectations are different for professional venues than PTA bake sales. And I'm pretty sure that most consumers/customers are aware that home baked goodies at PTA bake sales don't come from inspected/licensed kitchens.

HTH

Jan's question brings up a good point. Is this a bake sale type setup where many people will be donating items and they will have different tables with things to sell or is this something more formal where the two of you will be the only 2 doing desserts.? I am not sure I would do it if it's just the two of you. I don't know why but it gives me a weird vibe. .You being licensed and insured and the other baker not.

The venue may also have something to say about this. We did a charity event at the local community convention center and the organizers wanted to have a bake sale table. The venue said no because they can only allow food from licensed kitchens. I don't think the average non-profit thinks about those things when they come up with fundraisers.

I would say get clarification on the plan and configuration of the event but I would follow your instincts.

Thanks everyone! I thought about it and I decided I'm not doing it.
this is not a bake sale, cupcakes would be the dessert and I was going to donate a gift certificate for a raffle, If they invited another bakery in town then yes I would put up my best table ....but, I pay too many bills and insurance to be next to an illegal HB (no offense but seriously she shouldn't be advertising). and it's not a venue so they have nothing to say.
I just did a fundraiser yesterday and it was great! the venue only accepted bake goods from a licensed kitchen and the dessert spot was given only to me.
there are other ways I can help Autism.