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are "donations" to Good will tax deductible?

Posted on 6/12/14 at 10:19 am
Posted by Napoleon
Kenna
Member since Dec 2007
69234 posts
Posted on 6/12/14 at 10:19 am
I wonder how seeing it's a private company with no obligation to charity.

I was asking because I started a offshoot company and was wondering if I could give people receipts for donations and them be tax deductible?

My company already donates 100% of proceeds from scrap metal sales to charity, so I'm already giving back in that way.
Unlike Goodwill I won't trick people into thinking I'm a charity and they do a lot of good donating to me. Instead I plan on saying "I'm a company and I want you to give me things so I can sell them at high profit, but many items that can't be sold (30-35% of them) will be scrapped and all iron/copper and aluminum sales will go to charity. In addition we provide our services free to the ASPCA and many area churches and the donations would offset that".

So I wouldn't outright lie like Goodwill, to where everyone thinks it's a charity, but I would like to make donating more appealing. Currently I buy the items, but many people throw them out anyway. Our ROI on these items is through the roof and it keeps items from going to the dump and allows for people to have used options (all with 90 day warranty).

I was just curious what you have to do to be able to accept taxable donations?

Posted by CorkSoaker
Member since Oct 2008
9784 posts
Posted on 6/12/14 at 10:21 am to
Hell yeah and they give you blank receipts every time you donate. Helps a ton when doing your taxes the next April.
Posted by Clyde Tipton
Planet Earth
Member since Dec 2007
38797 posts
Posted on 6/12/14 at 10:21 am to
Do you have a flea market?

I can't figure out what it is... you do.
Posted by patnuh
South LA
Member since Sep 2005
6753 posts
Posted on 6/12/14 at 10:21 am to
quote:

are "donations" to Good will tax deductible?


Yeah, that's why they give you a receipt when you leave.
Posted by lsunurse
Member since Dec 2005
129045 posts
Posted on 6/12/14 at 10:26 am to
At least you know how horrible goodwill really is and why you should never donate to them
Posted by rintintin
Life is Life
Member since Nov 2008
16196 posts
Posted on 6/12/14 at 10:30 am to
Goodwill has the most genius business model ever. Their product is donated to them on a mass scale, and they sell it at 100% profit. Genius I tell you.

Their CEO makes over $2 mil a year too. Bet most people don't know that.

So much for a charity.
Posted by Thib-a-doe Tiger
Member since Nov 2012
35461 posts
Posted on 6/12/14 at 10:59 am to
You should not put your plans to evade taxes on the internet
Posted by brmach
Member since Aug 2012
771 posts
Posted on 6/12/14 at 11:14 am to
quote:

I was just curious what you have to do to be able to accept taxable donations?



Specifically, your company has to have tax exempt status under IRS Code Section 501(c)(3).
Posted by Alatgr
Mobeezy, Alabizzle
Member since Sep 2005
17660 posts
Posted on 6/12/14 at 11:17 am to
You would have to organize as a 501(c)(3) tax emempt organization. Then when you get audited to see if you comply with the requirements for maintaining 501c3 status, and don't, you will owe back taxes, interest and penalties on all the taxes you haven't been paying.

Good luck.
This post was edited on 6/12/14 at 11:19 am
Posted by Hugo Stiglitz
Member since Oct 2010
72937 posts
Posted on 6/12/14 at 11:23 am to
Don't get greedy, sounds like you'd do just fine without going non-profit.
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