A new Kentucky law took effect recently that requires nonprofits to collect sales tax on certain donor contributions. This new law means that nonprofits must charge supporters a six percent sales tax on:

• the total price of admission at fundraising events
• the total purchase price of silent auction items
• certain types of event sponsorships.

Even though the law has gone into effect, there are many questions that have not yet been clarified by the Department of Revenue. More details are here.