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
Yes, you would classify it as a donation. I don't think it matter to YOU if the organization you are giving it to is a non profit or not. It matters to THEM whether they would have to pay tax on the donation or not.
Donantions are tax deductible. you don't need a receipt, your cancelled check will do. But if you can get one, so much the better.
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by splathead
Yes, you would classify it as a donation. I don't think it matter to YOU if the organization you are giving it to is a non profit or not. It matters to THEM whether they would have to pay tax on the donation or not.
Donantions are tax deductible. you don't need a receipt, your cancelled check will do. But if you can get one, so much the better.
Thank you : )
So I can donate anytime to anyone or anything...I just need to keep the cancelled checks.
And then all of those donations can be written off, with no limit, as far as my taxes are concerned?
Re: I want to give money to my kid's school's parent club
You better make sure with your states tax laws as far as having a reciept. Every year I make a bunch of tees for moms who do the march of dimes walk because I have a preemie grandbaby. So when I talked to my tax guy he said it is not tax deductable because they are not a registered non profit. If I had made the donation to the MOD directly and gotten a reciept it would have been a deduction but because I donated just to the moms it was not. He also warned me that any charity you decide to donate to, make sure to get a reciept because if you are ever audited you will need the reciept from the charity (I am in the middle of this now, being audited). Its true you dont need a reciept when filing your taxes but if an audit comes up, you will need it. He also informed me that the irs is upping the audits 20% this year and probably a higher rate of audits next year because they need to get more money back into the system. I now know to make sure I keep really good records and to make sure you have all the paperwork to back up what you claim. Hope this helps
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by sunnydayz
You better make sure with your states tax laws as far as having a reciept. Every year I make a bunch of tees for moms who do the march of dimes walk because I have a preemie grandbaby. So when I talked to my tax guy he said it is not tax deductable because they are not a registered non profit. If I had made the donation to the MOD directly and gotten a reciept it would have been a deduction but because I donated just to the moms it was not. He also warned me that any charity you decide to donate to, make sure to get a reciept because if you are ever audited you will need the reciept from the charity (I am in the middle of this now, being audited). Its true you dont need a reciept when filing your taxes but if an audit comes up, you will need it. He also informed me that the irs is upping the audits 20% this year and probably a higher rate of audits next year because they need to get more money back into the system. I now know to make sure I keep really good records and to make sure you have all the paperwork to back up what you claim. Hope this helps
Totally helps, thank you so much.
I'm sorry that you are being audited. How did you get informed? And how does it proceed from there? What has the experience been like?
It makes me want to get more organized. I think I would be a wreck and be upset.
Re: I want to give money to my kid's school's parent club
I got a letter in the mail saying you have been selected and to call and make an appointment for your audit. It is stressful as you know they are going to go thru all of your stuff with a fine tooth comb I have my tax preparer going with me so he will handle the whole thing while I sit and be quite They gave about 6 weeks to prepare for it so that was good, but you have to call within 10 days from the letter to schedule it. From what my tax guy says is that its going to be more common for small business to be put thru this in the future. The irs told me to expect to be there for 4 hours while they do it and then they will notify me within 30 days to let me know if I have to pay anything or not. from what I understand it is really at their discretion what they do and dont except of your writeoffs. Then after they notify you, you have a right to appeal any fines they may give you. I will just be glad when its over but it has really opened my eyes to my organization hehe.
Re: I want to give money to my kid's school's parent club
I also wanted to add that I am being audited for 2005, not 2007. So it is true when they tell you to save all of your records for so many years I wish I would have knew the info I know now before I got that letter.
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by sunnydayz
I got a letter in the mail saying you have been selected and to call and make an appointment for your audit. It is stressful as you know they are going to go thru all of your stuff with a fine tooth comb I have my tax preparer going with me so he will handle the whole thing while I sit and be quite They gave about 6 weeks to prepare for it so that was good, but you have to call within 10 days from the letter to schedule it. From what my tax guy says is that its going to be more common for small business to be put thru this in the future. The irs told me to expect to be there for 4 hours while they do it and then they will notify me within 30 days to let me know if I have to pay anything or not. from what I understand it is really at their discretion what they do and dont except of your writeoffs. Then after they notify you, you have a right to appeal any fines they may give you. I will just be glad when its over but it has really opened my eyes to my organization hehe.
Wow! So it could be like a shake down?
As far as the ladies you donated to, could you then treat it as a promotional expense? Like when you give out free shirts to promote your business?
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by LittleDogy
As far as the ladies you donated to, could you then treat it as a promotional expense? Like when you give out free shirts to promote your business?
That's what i was going to say, if for some reason they don't qualify as a donation, there could be several other tax deductible classifications you could fit it into. Advertising, good will, etc.
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by splathead
That's what i was going to say, if for some reason they don't qualify as a donation, there could be several other tax deductible classifications you could fit it into. Advertising, good will, etc.
I can see how that would work for giving shirts away but I guess that might still put me at a loss since I'm selling a shirt and then giving money to a parent club. If they are not a non-profit then I have an accounting issue.
What do you call giving money away if it's not a donation? How does that go on the books?
Re: I want to give money to my kid's school's parent club
That I think would only work for advertising if you are giving the shirt to them and then you can write off the cost of what it cost you to make. I am not sure how that works with giving them part of the money. Your best bet to be safe is talk to your tax person for the particular filing laws for what you want to do. That is what I did to be safe. He told me to quit giving things to people that were not registered charity's and that if I did that was at my own expense
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by sunnydayz
That I think would only work for advertising if you are giving the shirt to them and then you can write off the cost of what it cost you to make. I am not sure how that works with giving them part of the money. Your best bet to be safe is talk to your tax person for the particular filing laws for what you want to do. That is what I did to be safe. He told me to quit giving things to people that were not registered charity's and that if I did that was at my own expense
Thank you BobbieLee : )
I just found out that our Parent Club IS a non-profit. So it looks like I'm good : )
I don't know if they are all that way but I was told they had to file and go throught he whole process to get a bank account open .
Re: I want to give money to my kid's school's parent club
yep that sounds right, Just make sure to get a reciept for each donation you make to them Also another great thing I do for a write off is when I have shirts I dont need or maybe have a small misprint, I donate them to a womens and childrens shelter that is registered, so I get a write off for most of my mistakes I figure I cant sell it because of the mistake but a mom or kid without anything wont have a problem wearing them, and they do really appreciate getting a nice new shirt to wear
Re: I want to give money to my kid's school's parent club
Quote:
Originally Posted by sunnydayz
I donate them to a womens and childrens shelter that is registered
What a great idea! I'm sure that because you just posted this, others will start donating the same way. Great Job!
After all, I have all kinds of mistakes piled up right now. Switching from material to material sometimes I forget to mirror. Too bad backwards print isn't the cool thing to sport : )
I want to give money to my kid's school's parent club 
