Why This Is Harder for a Church or Nonprofit

  • The person responsible is often a volunteer, and energy contracts are written for professionals.
  • Decisions go through a board or council that meets monthly, while supplier offers can expire within days.
  • Your building may use a lot of power for a few hours a week, which a standard business offer doesn't account for.
  • And you get more sales calls than most, some of them from people who aren't who they say they are.

Mistake 1: Letting the Contract Roll Over

When a fixed-rate contract ends, many roll onto a variable or month-to-month rate. It usually happens quietly, and the new rate can be much higher. The letters warning you about it often land on a desk that changes hands every year.

The fix: know your end date, write it in the board minutes, and start shopping two to four months before it.

Mistake 2: Paying Sales Tax You May Not Owe

In Pennsylvania, electricity and natural gas bought for non-residential use are normally subject to sales tax. But qualifying charitable and religious organizations hold a Department of Revenue exemption number (it starts with "75") and can buy utilities tax-free when the bill is in the organization's name.

To use it, you give an exemption certificate (Form REV-1220) to the company billing you. When you switch suppliers, the new supplier needs that certificate too. If nobody sends it, sales tax can quietly start showing up on your bill.

The fix: check your latest bills for sales tax. If you qualify and see it, send your certificate to whoever bills you, and make sure it's on file with any new supplier before your first bill.

Outside Pennsylvania? Your state has its own rules for nonprofits and energy. Check with your accountant. And in any state, the exemption doesn't cover energy used for an unrelated business activity: if part of your building is rented out or used commercially, ask your accountant how to handle it.

Source: 61 Pa. Code §§ 32.21 and 32.25.

Mistake 3: Signing With Whoever Calls

Churches and nonprofits get a steady stream of calls and visits from energy sellers. Some imply they're from your utility or a special program. Your utility doesn't sell supply contracts. Never share your account number with someone who calls uninvited, and never sign on the spot.

A Simple Process for a Board

  1. Decide the rules in advance. At a regular meeting, agree on what you'll accept: fixed rate only, a maximum price, the contract length, and who may sign.
  2. Get competing offers for your electric and gas accounts.
  3. Sign the best offer that meets your rules, then report it at the next meeting.
  4. Put the end date in the minutes.

Know Your Building

Many church buildings use most of their power in a few busy hours: Sunday services, events, a weekday program. If your building has a demand meter, part of your bill depends on your highest usage, not just your total. Our Load Factor Check shows how peaky your usage is, using two numbers from your bill.

How We Help Churches and Nonprofits

  • We get competing offers from licensed suppliers for your electric and gas accounts.
  • We explain each offer in plain English, in a format your treasurer can take to the board.
  • We make sure your new supplier has your tax exemption certificate on file before your first bill.
  • We track your end date and reach out months ahead, so you're never rolled onto a higher rate.
  • It's free to you. The supplier you choose pays us. If nothing beats what you pay now, we'll tell you.

Start a Free Savings Check →

Or skip the form: send us a photo of your bill.

FAQ

Do churches pay sales tax on electricity in Pennsylvania?

Qualifying religious and charitable organizations can buy utilities tax-free with their Department of Revenue exemption number and an exemption certificate given to the company billing them. Without the certificate on file, sales tax is normally charged.

We switched suppliers and now see sales tax. Why?

The new supplier may not have your exemption certificate. Send it to them and ask about correcting the bills.

Can you handle our gas as well as electric?

Yes. We shop both.

Our treasurer changes every year. How do we keep track?

Put the contract end date in the board minutes, and we'll contact the organization before it ends, whoever holds the job.

How are you paid?

The supplier you choose pays us a commission built into the rate.