I have a friend who wishes to essentially donate money to help my small business thrive. He wants nothing to do with being actually involved in the business, simply give the cash, and perhaps earn some returns later, if there are any.
So the question is: how can he do this to make sure the amount he donates to the company every year is tax deductible or somehow filed as a business expense/loss for his own personal income statement, etc...?
Thanks!
Re: For-Profit business funding-donations
First of all welcome - this is a great place to connect.
The short answer is that you'll have to pay sales tax. The big boys you speak of, Goodwill Salvation Army, etc. are set up as non profits. The money made from their thrift stores goes to support other programs that are for the greater good. Now if your goal is to do that, then I'd suggest talking to an accountant that can help you establish a 501(c) but if you are looking to do a straight for profit business, know you'll have to have customers pay the sales tax applicable for your state and you in turn will be responsible for turning over that money.
Re: For-Profit business funding-donations
Hello,
I'm not sure how to get around this, however. The idea of foetry running workshops and doing editing does leave a bad taste, though t-shirts and cups seem okay. There's no aura of desperation connected with foetry collectibles.
I thought maybe we could think about a Consumer's Report approach, but I'm not sure how they get their funding. They don't accept advertising. They have their magazine, of course, and their car shopping reports, but I doubt if those small (relatively speaking) projects garner THAT much funding. And, yet, they have a large paid staff and a facility. I wonder where they get their funding? Donations? Philanthropists?
Thank You
Amy
Re: For-Profit business funding-donations
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Re: For-Profit business funding-donations
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Re: For-Profit business funding-donations
The big boys you speak of, Goodwill Salvation Army, etc. are set up as non profits. The money made from their thrift stores goes to support other programs that are for the greater good. Now if your goal is to do that, then I'd suggest talking to an accountant that can help you establish a 501(c) but if you are looking to do a straight for profit business, know you'll have to have customers pay the sales tax applicable for your state and you in turn will be responsible for turning over that money.
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Warehouse Shelving
Pallet Racking
Re: For-Profit business funding-donations
For profit business should look for grants or angel investors if one need operating cash, keeping in mind that the IRS is going to want to know where that money is coming from because revenue that is earned is taxable.
Re: For-Profit business funding-donations
Funding donations are not easy to find these days, we have to manage our search and find good investors who have plans to keep our business grow at faster pace.