I want to give money to my kid's school's parent club
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This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
I want to give money to my kid's school's parent club
Re: I want to give money to my kid's school's parent club
You really do want to work with a professional accountant or tax professional on this because you may be really costing yourself more money than you think. If you sell the shirts, and then donate the profits to the group, are you truly factoring in all of your costs? If you have to pay B&O to the state (if your state has it) be sure to add that to your costs.
It might make work better to donate the shirts to the group, deducting your costs as a donation, and let the customers pay the group directly, even if you are the volunteer handling the sales. Does that make sense?
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by UglyCook
You really do want to work with a professional accountant or tax professional on this because you may be really costing yourself more money than you think. If you sell the shirts, and then donate the profits to the group, are you truly factoring in all of your costs? If you have to pay B&O to the state (if your state has it) be sure to add that to your costs.
It might make work better to donate the shirts to the group, deducting your costs as a donation, and let the customers pay the group directly, even if you are the volunteer handling the sales. Does that make sense?
thank you for the ideas : )
But I want to be a non-hassle blessing to the parent club. I don't want to take up any of their time. After all, they are a bunch of volenteers. And I don't want to confuse the situation because I do plan on making a profit. So I think if I just donate money I'll look better than trying to work with them and then take a profit.
Re: I want to give money to my kid's school's parent club
I sold shirts through a school, I worked at and gave the PTA a check at the end of the sale. I put a sign up saying a portion of the price would benefit the school. I then sold shirts to teachers,staff,and parents. I gave the PTA a check for the arranged percentage of total sales. I kept a copy of the check and thankyou letter from the PTA. I took this as a donation off my taxes. ..... JB
Re: I want to give money to my kid's school's parent club
I agree with most of the above posts. Non profit donations are safest. You can donate to a not for profit entity, but they must have applied to the state for a charitable status to be considered a deductable donation. They should have a certificate denoting this. There are ways around most of this clutter. If it has your name, it can be considered advertising. You may even be able to call them samples and deduct them as a business expense. It would be best to talk to you accountant to get the best bang for the charitable buck.
Re: I want to give money to my kid's school's parent club
I did forget one thing. If you are selling something to a charitable group, but offering a "discount", you may have trouble deducting this. For example... You sell $1000 worth of tee shirts to a church, but offer to sell them at cost of say $250.00 to cover your expenses. You could have trouble saying you donated $750.00. In a case like this where you are just trying to cover costs, your best bet may be to charge the full $1000.00 and after you have received and deposited the check, you could later send them a check for $750.00 as a separate transaction donation. Just be sure it goes to the charity and not an individual or it may be considered a kickback.
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by COEDS
I sold shirts through a school, I worked at and gave the PTA a check at the end of the sale. I put a sign up saying a portion of the price would benefit the school. I then sold shirts to teachers,staff,and parents. I gave the PTA a check for the arranged percentage of total sales. I kept a copy of the check and thankyou letter from the PTA. I took this as a donation off my taxes. ..... JB
Be careful how you log this in your books. For example say you sold $100 with the agreement the school would get $25. If you are claiming the $25 as a deduction, then you would still have to show income on your books for $100 and not for the actual income you netted, which was $75.
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by splathead
Be careful how you log this in your books. For example say you sold $100 with the agreement the school would get $25. If you are claiming the $25 as a deduction, then you would still have to show income on your books for $100 and not for the actual income you netted, which was $75.
Hi Joe,
For some reason, I already had it in my mind that the two transactions would be completly sepperated from each other.
#1 I would sell a shirt and there would be profit.
#2 At some point later, there would be a donation.
The amount donated will be in direct realation to how many sales I made but the donation won't point that out. It will just be an amount of money donated.
So on my books there will be two totally different transactions.
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by LittleDogy
Hi Joe,
For some reason, I already had it in my mind that the two transactions would be completly sepperated from each other.
#1 I would sell a shirt and there would be profit.
#2 At some point later, there would be a donation.
The amount donated will be in direct realation to how many sales I made but the donation won't point that out. It will just be an amount of money donated.
So on my books there will be two totally different transactions.
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by COEDS
I sold shirts through a school, I worked at and gave the PTA a check at the end of the sale. I put a sign up saying a portion of the price would benefit the school. I then sold shirts to teachers,staff,and parents. I gave the PTA a check for the arranged percentage of total sales. I kept a copy of the check and thankyou letter from the PTA. I took this as a donation off my taxes. ..... JB
Someone told me that if you advertise that you are donating proceeds or whatever that you cannot then deduct it.....do you have any insight to that?
p.s. I'm from Pennsylvania so I'm not sure if the laws differ that greatly from state to state
Re: I want to give money to my kid's school's parent club 
