Hello. Just wondering if anybody is familiar with the procedure of raising $ for charities through sales of t-shirts. Do I have to be incorporated and does anybody know the tax implications for the customer and for myself?
If you are a proprietor I think the tax deduction for contributions is the same as for any person making a contribution. If you are incorped, watch out there are some funny laws that give major corps the deductions that a chapter S can't claim. And the tune goes on.
Is it mandatory for me to be incorporated if I want to sell t-shirts and give a fixed % to charities? What if the children's charity will not let me state them (licensing agreement states only $250,000 guaranteed would allow me to do that with one charity)
I'm not a lawyer and this is not legal advice But...
As an individual, I don't think there are any problems with donating to any charity through any means.
The problem comes in when you try to advertise on your site that you are donating to that charity.
Since the charity has no way of knowing how many sales you have, they can't be sure that you are following your word to donate a certain amount of sales, and they don't want you profiting from their name.
Just don't use their name on your site. Use a generic statement about donations, and try to be as transparent as possible on your website in regards to number of sales, how much you have donated to date, receipts from donations made, etc.
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