I am not positive where I want to put this; however, I have a cross-examine. If a church declares itself to be a 501(c)3 nonetheless sells items (books, cd's, tshirts), how does this work? I am wondering around something. There is a local church here. It's a very life-size non-denominational church that makes a point to allege themselves as 501(c)3. They sell items for profit and do charge taxes and even shipping costs if you want it shipped to your home. Can they truly do that? I'm curious.

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Answers:    Any 'not for profit' that holds a ruling from the (US) IRS as a 501(c)3 can sell to it's heart content. And yes they are required to include taxes if the city/county/state, etc impose them.

A 'not for profit', one and only means that the business is excluded to share the profit with it's owners (members). They can be rewarded a wage though, just not profits. The profits MUST be used to provide a service of some type that the IRS have approved.
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