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Technically, yes, because it's a fundraiser - you're soliciting funds. Unless you're a 501 (c)(3) tax-exempt organization.
The activity of putting out baby bottles and asking for donations is different from the activity of selling merchandise or food. In the case of your yard and bake sales, in most areas these sales are subject to sales tax, though many communities exempt them or just don't bother to enforce this because the return - amount they'd collect in taxes - isn't worth the cost to collect.
So yes, technically you do owe unless you're a 501(c)(3) tax-exempt nonprofit.
The amounts involved though are low, meaning it's not likely that the IRS will attempt to collect.
Does this help?
Regina
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Thoughts become Words. Words become Actions. Actions become Character. Character is Everything.
"It will all be OK in the end. If it's not OK, it's not the end." - My friend Amy
"As God is my witness," Mr. Carlson insists, "I thought turkeys could fly"
Philly Area AParents Meetup! http://adoption.meetup.com/117/
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