ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
not sure.... good question!
we get bikes on occasion from about 3 local shops and they have never asked or cared. others have never approached us.
Andrew TBR
On Thu, Oct 10, 2013 at 11:55 AM, Matt VanSlyke matt@uticabikerescue.orgwrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- *Matt VanSlyke* *Utica Bike Rescue* *714 Washington Street, Utica, NY 13502* *315.525.9554* *matt@uticabikerescue.org* *www.uticabikerescue.org* *www.facebook.com/uticabikerescue* *Learn. Earn. Ride.*
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The way we have always done it is for any inkind donation, whether for individuals or businesses is to issue them a receipt that states their gift is tax deductible. The current law as I have come to understand it is that the non-profit itself is not legally allowed to assign a monetary value to the inkind gift - we simply list what they gave. Like you said, some businesses care about the deduction and some don't but the main difference that we have come across is that if a business IS interested in writing off the gift, they will need your Tax ID number. As for incentives, we offer promotion of their shop by thanking them publicly through our facebook page and listing them as a supporter on our website. They'd have to decide if they really want to go to the trouble to write off the donation. Another way it would differ from individuals would be the need for your tax-id number. To save the headache, we include our tax id number at the bottom of a thank you letter with acknowledgement of their gift - and we include a a line that states that it is their receipt. I'd suggest just making a word document standard thank you letter for donations with a note at the bottom where you can list out the inkind items and include your ID number. Sometimes businesses will ask you to fill out a W-9 but we only do this per their request. Another incentive, although not monetary, is that we send people to their shops if we cannot meet their needs. We find the more we thank them the more the favor is returned.
On Thu, Oct 10, 2013 at 11:06 AM, Andrew L breathingplanet@gmail.comwrote:
not sure.... good question!
we get bikes on occasion from about 3 local shops and they have never asked or cared. others have never approached us.
Andrew TBR
On Thu, Oct 10, 2013 at 11:55 AM, Matt VanSlyke matt@uticabikerescue.orgwrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- *Matt VanSlyke* *Utica Bike Rescue* *714 Washington Street, Utica, NY 13502* *315.525.9554* *matt@uticabikerescue.org* *www.uticabikerescue.org* *www.facebook.com/uticabikerescue* *Learn. Earn. Ride.*
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-- ------__o ----_`<,_ ---(_)/ (_) andrew lynn 518-573-7947
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We have one bike shop that does not sell used bikes but they tell them that they will give them to our shop and they print them one of our donation slips. We also get bikes from recycling drop offs who dont need one. If somebody drops one off at our shop we email them a receipt within 24 hours
Sent from my iPad
On Oct 10, 2013, at 12:06 PM, Andrew L breathingplanet@gmail.com wrote:
not sure.... good question!
we get bikes on occasion from about 3 local shops and they have never asked or cared. others have never approached us.
Andrew TBR
On Thu, Oct 10, 2013 at 11:55 AM, Matt VanSlyke matt@uticabikerescue.org wrote: ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- Matt VanSlyke Utica Bike Rescue 714 Washington Street, Utica, NY 13502 315.525.9554 matt@uticabikerescue.org www.uticabikerescue.org www.facebook.com/uticabikerescue Learn. Earn. Ride.
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-- ------__o
----_`<,_ ---(_)/ (_) andrew lynn 518-573-7947
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If you lack IRS exemption, you might try finding an allied organization (established 501(c)3 in recreation, youth or poverty work) to act as a fiscal sponsorhttp://www.grantspace.org/Tools/Knowledge-Base/Funding-Research/Definitions-and-Clarification/fiscal-sponsorshipfor this effort.
Kevin Dwyer Board President The Bicycle Collective SLC, UT
On Thu, Oct 10, 2013 at 11:18 AM, Jon Sher jonathansher@charter.net wrote:
We have one bike shop that does not sell used bikes but they tell them that they will give them to our shop and they print them one of our donation slips. We also get bikes from recycling drop offs who dont need one. If somebody drops one off at our shop we email them a receipt within 24 hours
Sent from my iPad
On Oct 10, 2013, at 12:06 PM, Andrew L breathingplanet@gmail.com wrote:
not sure.... good question!
we get bikes on occasion from about 3 local shops and they have never asked or cared. others have never approached us.
Andrew TBR
On Thu, Oct 10, 2013 at 11:55 AM, Matt VanSlyke matt@uticabikerescue.orgwrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- *Matt VanSlyke* *Utica Bike Rescue* *714 Washington Street, Utica, NY 13502* *315.525.9554* *matt@uticabikerescue.org* *www.uticabikerescue.org* *www.facebook.com/uticabikerescue* *Learn. Earn. Ride.*
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-- ------__o ----_`<,_ ---(_)/ (_) andrew lynn 518-573-7947
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We treat business donations the same as individual donations. We give them a tax receipt and the rest is up to them to work out with their accountant or when they do their taxes.
Wanda
Wanda Pelegrina Caldas, Board Member
Community Cycles, Boulder's only nonprofit bike shop, serves all your bike commuting needs.
Find us on Facebook, subscribe to our monthly e-news or use our secure online donation form to become a member, today.
Thanks!!
Date: Thu, 10 Oct 2013 11:55:55 -0400 From: matt@uticabikerescue.org To: thethinktank@lists.bikecollectives.org Subject: [TheThinkTank] Donations from Businesses
ThinkTank,I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
If your organization has 501(c)3 approval from the IRS, the value of those donations are tax-deductible to the donating business. If you're not 501(c)3, I'm not sure. Your state revenue department may also have some tax designation that may be helpful. You might try contacting them.
B. J. Green Treasurer Lincoln Bike Kitchen Lincoln, NE
Date: Thu, 10 Oct 2013 11:55:55 -0400 From: matt@uticabikerescue.org To: thethinktank@lists.bikecollectives.org Subject: [TheThinkTank] Donations from Businesses
ThinkTank,I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
I'm not a CPA, Matt, but I'm pretty certain they can take actual value for their donations. Suggest an appraisal or other 3rd party valuation, though.
Sent from my iPhone
On Oct 10, 2013, at 8:55 AM, Matt VanSlyke matt@uticabikerescue.org wrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- Matt VanSlyke Utica Bike Rescue 714 Washington Street, Utica, NY 13502 315.525.9554 matt@uticabikerescue.org www.uticabikerescue.org www.facebook.com/uticabikerescue Learn. Earn. Ride. _______________________________________________ Thethinktank mailing list Thethinktank@lists.bikecollectives.org To unsubscribe, send a blank email to TheThinkTank-leave@bikecollectives.org To manage your subscription, plase visit: http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
Some tax software evaluates it for you
Sent from my iPad
On Oct 10, 2013, at 3:25 PM, Steven Bradley stevencbradley@gmail.com wrote:
I'm not a CPA, Matt, but I'm pretty certain they can take actual value for their donations. Suggest an appraisal or other 3rd party valuation, though.
Sent from my iPhone
On Oct 10, 2013, at 8:55 AM, Matt VanSlyke matt@uticabikerescue.org wrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- Matt VanSlyke Utica Bike Rescue 714 Washington Street, Utica, NY 13502 315.525.9554 matt@uticabikerescue.org www.uticabikerescue.org www.facebook.com/uticabikerescue Learn. Earn. Ride. _______________________________________________ Thethinktank mailing list Thethinktank@lists.bikecollectives.org To unsubscribe, send a blank email to TheThinkTank-leave@bikecollectives.org To manage your subscription, plase visit: http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
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they need to talk with there tax accountant
Lesa Franz Coatesville Community Bike Works
Sent from my iPad
On Oct 10, 2013, at 3:25 PM, Steven Bradley stevencbradley@gmail.com wrote:
I'm not a CPA, Matt, but I'm pretty certain they can take actual value for their donations. Suggest an appraisal or other 3rd party valuation, though.
Sent from my iPhone
On Oct 10, 2013, at 8:55 AM, Matt VanSlyke matt@uticabikerescue.org wrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- Matt VanSlyke Utica Bike Rescue 714 Washington Street, Utica, NY 13502 315.525.9554 matt@uticabikerescue.org www.uticabikerescue.org www.facebook.com/uticabikerescue Learn. Earn. Ride. _______________________________________________ Thethinktank mailing list Thethinktank@lists.bikecollectives.org To unsubscribe, send a blank email to TheThinkTank-leave@bikecollectives.org To manage your subscription, plase visit: http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
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Seems that the lesson learned here is....ask a pro when it comes to taxes. Thanks All. -Matt
On Thu, Oct 10, 2013 at 3:38 PM, Lesa Franz gadget_teer@yahoo.com wrote:
they need to talk with there tax accountant
Lesa Franz Coatesville Community Bike Works
Sent from my iPad
On Oct 10, 2013, at 3:25 PM, Steven Bradley stevencbradley@gmail.com wrote:
I'm not a CPA, Matt, but I'm pretty certain they can take actual value for their donations. Suggest an appraisal or other 3rd party valuation, though.
Sent from my iPhone
On Oct 10, 2013, at 8:55 AM, Matt VanSlyke matt@uticabikerescue.org wrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- *Matt VanSlyke* *Utica Bike Rescue* *714 Washington Street, Utica, NY 13502* *315.525.9554* *matt@uticabikerescue.org* *www.uticabikerescue.org* *www.facebook.com/uticabikerescue* *Learn. Earn. Ride.*
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I have the viewpoint that if an entity is NOT tax exempt (501c3), donations are treated as income by the non-profit and the donor can not deduct the value on their tax return. When donations are sold, then the question is was it sold for market value, below or above? A non profit can have taxable income if they do indeed have a real profit. Even those who have tax exempt status can be taxed for UBIT(Unrelated Business Income Tax), if they sell things that are "unrelated" to their mission. Angelo
On Thursday, October 10, 2013 3:47 PM, Matthew VanSlyke vanslyke.matthew@gmail.com wrote:
Seems that the lesson learned here is....ask a pro when it comes to taxes. Thanks All. -Matt
On Thu, Oct 10, 2013 at 3:38 PM, Lesa Franz gadget_teer@yahoo.com wrote:
they need to talk with there tax accountant
Lesa Franz Coatesville Community Bike Works
Sent from my iPad
On Oct 10, 2013, at 3:25 PM, Steven Bradley stevencbradley@gmail.com wrote:
I'm not a CPA, Matt, but I'm pretty certain they can take actual value for their donations. Suggest an appraisal or other 3rd party valuation, though.
Sent from my iPhone
On Oct 10, 2013, at 8:55 AM, Matt VanSlyke matt@uticabikerescue.org wrote:
ThinkTank,
I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
--
Matt VanSlyke Utica Bike Rescue 714 Washington Street, Utica, NY 13502 315.525.9554 matt@uticabikerescue.org http://www.uticabikerescue.org/ www.facebook.com/uticabikerescue Learn. Earn. Ride.
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If you are a non profit you give them a receipt, they fill it in with what they think it's worth. If the IRS thinks they lied or overvalued stuff it's on them. It's good for them to have a detailed inventory and be to be modest I they need to defend the number they came up with.
Enzo Loconte Board Secretary Bikerowave
On Oct 18, 2013, at 4:45 PM, Angelo Coletta summitcyclingcenter@yahoo.com wrote:
I have the viewpoint that if an entity is NOT tax exempt (501c3), donations are treated as income by the non-profit and the donor can not deduct the value on their tax return. When donations are sold, then the question is was it sold for market value, below or above? A non profit can have taxable income if they do indeed have a real profit. Even those who have tax exempt status can be taxed for UBIT(Unrelated Business Income Tax), if they sell things that are "unrelated" to their mission. Angelo
On Thursday, October 10, 2013 3:47 PM, Matthew VanSlyke vanslyke.matthew@gmail.com wrote: Seems that the lesson learned here is....ask a pro when it comes to taxes. Thanks All. -Matt
On Thu, Oct 10, 2013 at 3:38 PM, Lesa Franz gadget_teer@yahoo.com wrote: they need to talk with there tax accountant
Lesa Franz Coatesville Community Bike Works
Sent from my iPad
On Oct 10, 2013, at 3:25 PM, Steven Bradley stevencbradley@gmail.com wrote:
I'm not a CPA, Matt, but I'm pretty certain they can take actual value for their donations. Suggest an appraisal or other 3rd party valuation, though.
Sent from my iPhone
On Oct 10, 2013, at 8:55 AM, Matt VanSlyke matt@uticabikerescue.org wrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- Matt VanSlyke Utica Bike Rescue 714 Washington Street, Utica, NY 13502 315.525.9554 matt@uticabikerescue.org http://www.uticabikerescue.org/ www.facebook.com/uticabikerescue Learn. Earn. Ride. _______________________________________________ Thethinktank mailing list Thethinktank@lists.bikecollectives.org To unsubscribe, send a blank email to TheThinkTank-leave@bikecollectives.org To manage your subscription, plase visit: http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
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Matt-
There is an IRS working paper on in-kind donations here: http://www.irs.gov/pub/irs-tege/eotopice94.pdf
It's rather old, but probably the principle is the same. It appears that if the goods can be classified as stock (merchandise that was originally purchased for retail sale), then the donating corporation may at a minimum deduct their own cost (not the retail value)--up to a total that is some proportion of the donating corporations total income (I think it was 10%; unlikely that this would present a problem for any reasonably sized business).
In other words, yes they can get a deduction for the contribution (providing your org or agent is a 501c3 of course).
The only question will be how they document the value for the IRS (if they ask?). If they actually paid for the bikes, then any documentation they have from those purchases should suffice.
I'm not an accountant, but I play one on the internet.
Eric
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
From: thethinktank-bounces@lists.bikecollectives.org [thethinktank-bounces@lists.bikecollectives.org] on behalf of Angelo Coletta [summitcyclingcenter@yahoo.com] Sent: Friday, October 18, 2013 7:45 PM To: The Think Tank Subject: Re: [TheThinkTank] Donations from Businesses
I have the viewpoint that if an entity is NOT tax exempt (501c3), donations are treated as income by the non-profit and the donor can not deduct the value on their tax return. When donations are sold, then the question is was it sold for market value, below or above? A non profit can have taxable income if they do indeed have a real profit. Even those who have tax exempt status can be taxed for UBIT(Unrelated Business Income Tax), if they sell things that are "unrelated" to their mission. Angelo
On Thursday, October 10, 2013 3:47 PM, Matthew VanSlyke vanslyke.matthew@gmail.com wrote: Seems that the lesson learned here is....ask a pro when it comes to taxes. Thanks All. -Matt
On Thu, Oct 10, 2013 at 3:38 PM, Lesa Franz <gadget_teer@yahoo.commailto:gadget_teer@yahoo.com> wrote: they need to talk with there tax accountant
Lesa Franz Coatesville Community Bike Works
Sent from my iPad
On Oct 10, 2013, at 3:25 PM, Steven Bradley <stevencbradley@gmail.commailto:stevencbradley@gmail.com> wrote:
I'm not a CPA, Matt, but I'm pretty certain they can take actual value for their donations. Suggest an appraisal or other 3rd party valuation, though.
Sent from my iPhone
On Oct 10, 2013, at 8:55 AM, Matt VanSlyke <matt@uticabikerescue.orgmailto:matt@uticabikerescue.org> wrote:
ThinkTank, I have been trying to research this and I'm not really finding a complete answer. Perhaps some of you have personal experience/knowledge that can help. There is a bike shop in my City that has a stockpile of used bikes in a warehouse and they've expressed some interest in donating them to our community bike shop. Does anyone know specifically what the tax advantages are for the business that donates? I know how it works for individuals but I don't know how it works for a business.
Does anyone have epxerience with this?
Thanks, Matt
-- Matt VanSlyke Utica Bike Rescue 714 Washington Street, Utica, NY 13502 315.525.9554<UrlBlockedError.aspx> matt@uticabikerescue.orgmailto:matt@uticabikerescue.org http://www.uticabikerescue.org/ www.facebook.com/uticabikerescuehttp://www.facebook.com/uticabikerescue Learn. Earn. Ride. _______________________________________________ Thethinktank mailing list Thethinktank@lists.bikecollectives.orgmailto:Thethinktank@lists.bikecollectives.org To unsubscribe, send a blank email to TheThinkTank-leave@bikecollectives.orgmailto:TheThinkTank-leave@bikecollectives.org To manage your subscription, plase visit: http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o... _______________________________________________ Thethinktank mailing list Thethinktank@lists.bikecollectives.orgmailto:Thethinktank@lists.bikecollectives.org To unsubscribe, send a blank email to TheThinkTank-leave@bikecollectives.orgmailto:TheThinkTank-leave@bikecollectives.org To manage your subscription, plase visit: http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
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participants (13)
-
Andrew L -
Angelo Coletta -
greenbean246 Green -
Jon Sher -
Kevin Dwyer -
Lesa Franz -
Martin, Eric Vance -
Matt VanSlyke -
Matthew VanSlyke -
melody moody -
Steven Bradley -
Wanda Pelegrina Caldas -
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