Hi MadieHauck,
Thanks for the question. I am assuming you are a valid 501(c)3 tax exempt organization. If so, The IRS does not consider fundraising proceeds a taxable source of income. However, you could still owe taxes, depending on how the funds were used and if anything was provided in exchange.
Here is the IRS link to Exempt Organizations that provides a lot of useful information. If you are not a valid 501(c)3 tax exempt organization, you can create one. As long as the purpose you are raising and spending money for qualifies per the IRS guidelines, here are the steps:
9 Step Process to Start a 501(C)(3) Organization
Here is the IRS site that explains the exemption requirements. You do not have to form an LLC or Incorporate, most states allow for unincorporated nonprofit associations. Associations are generally organized and operated as both nonprofit and tax-exempt entities. Nonprofit status refers to incorporation status under state law; tax-exempt status refers to federal income tax exemption under the Internal Revenue Code.
Please follow up if I did not adequately answer or understand your question.
