I am in the process of starting a website to raise funds for school supplies to be donated to local grammar school aged children and want to contact some local business about using them as a drop site for school supply donations.I can not imagine this will generate more then $1-2000 a year. Something small... do I have to register as a charity or non profit?
It is not clear from your question what sort of venture you plan to operate. Is it simply an information only website that shows the location of the drop sites? If so, and you never collect any money or goods than you should be fine.
If however you claim to be a charity and collect money and or goods then you will probably need to register as such.
do I have to register as a charity or non profit?Well, if you do NOT - then the donations are not tax deductable. As a result it is a lot better for anyone NOT to deal with you but to donate directly to the school - which likely has a charity attached that can put out those little pieces of paper that the government wants for tax deductability.