There is a rather unique exception to the rule that exempts sales to exempt organizations. These regulations are both entitled Marketing Organizations Soliciting Sales Through Exempt Entity Fund-Raising Activities. If the exempt entity were acting as the fundraiser's agent, the fundraiser would owe sales or use tax on the portion of the sale price that the exempt entity retains. In Cherrydale the AHC found the facts to be different than the regulation. The sales were from Cherrydale to the exempt organizations, which sold to the final consumer, and therefore, not subject to sales tax.
Churches are almost always exempt.
Historically, the same was true for hospitals.