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.
Im curious how everyone else deals with nonprofits that come into your shop.
Its been happening alot lately. Some get quite insistant that we cut the pricing because of it. The more they insist the more irritated I get about it.
Do you have a set %discount for them?
Do you require documentation of their nonprofit status?
It's entirely a personal thing, do you want to support the non-profit or do you need some low margin business.
Depends on the non-profit, I've done things at cost and things at full price.
Do you have a set %discount for them?
Do you require documentation of their nonprofit status?
I give discounts to non-profit and youth groups. Always get a tax exempt form from the non-profit group if they are truly a non-profit goup then they will have one.
I give discounts to non-profit and youth groups. Always get a tax exempt form from the non-profit group if they are truly a non-profit goup then they will have one.
If you're ever audited you will be required to show supporting documentation that the customer was indeed a non-profit group. This should be your normal course of business for any non-taxed sale. If the customer can't provide the documentation, then they get taxed...period.
what about zero discount...but then give them a check equal to the percentage you want...you get full price but with the donation, you do give back but would it not be tax deductible if the group is in fact non profit?
We provide "AT COST" printing for all non-profits!!!
The way we can do this is that we sub out ALL non-profit work. This lets us provide the organizations with products for much cheaper than they would normally get, but still keeps our presses open for the jobs that we will make money on.
Of course these 'at-cost' printings include our ad on the back of the shirt.
This is actually what we call our Chariteez program, something we are very proud of and actually seek out non-profit orders to print for.
I have also printed for non profits, and do give a discount. Then I get a receipt for the discounted amount as a donation. I always make sure to get a receipt with their charities registration number. The receipt is very very important. I too have been audited and needed it for proof. Also with the discount I printed my business as a sponsor on the garments. I have done a lot for the march for babies with the march of dimes.
So basically you can give a discount, get free advertisement and get a tax deduction for your business they way I do it
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Always do right; this will gratify some people and astonish the rest. ~~~Mark Twain BobbieLee
It's just been my experience that what starts out as a "favor" ends up being a full blown task. "Oh, and by the way, we have 74 sponsors we want on the back, here are their logo files"...At which point you get a floppy disk with a few gif files and a handfull of crumpled up papers.
All you need to get for your taxes, is a receipt with their non profit registration number on it. Also make sure that you have the amount of the donation (the amount of the discount) and a description of the items, it just makes it easier that way, with it all in writing.
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Always do right; this will gratify some people and astonish the rest. ~~~Mark Twain BobbieLee
Yes, as someone who did get audited ,I keep them as a taxable account until I have the correct paper work from them in my files.
As far as a special discount, I just inform that that although they maybe a nonprofit, I am not. Life is to short for that BS, they can move along.
As the director of a nonprofit, I see both sides of this issue. However, it is important to note that a company such as ours has tens of thousands of contacts nationwide and we don't forget who was rude and difficult to deal with.
We also make it very public when companies are helpful and compassionate. Word of mouth is powerful, both in your favor and against you.
I for one totally respect when a business owner simply tells the truth. I don't mind hearing, "I would love to help but we simply can't right now." Believe me I understand that.
Last edited by FightSarcoma; October 16th, 2010 at 11:30 PM.
All you need to get for your taxes, is a receipt with their non profit registration number on it. Also make sure that you have the amount of the donation (the amount of the discount) and a description of the items, it just makes it easier that way, with it all in writing.
Yep any REAL 501(c)(3) will be more than happy to provide you with their tax id. Also, if you really want to do your homework you can to go GuideStar nonprofit reports and Forms 990 for donors, grantmakers and businesses and enter the EIN# they give you and verify that they are who they say they are and that they are legit.
Also, the nonprofit should be more than pleased to provide you with a written receipt for the value of the donation (however you choose to give it) and they should also be more than willing to advertise for you. I know we are.
How do you deal with nonprofits? 
