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Started By
Message
are "donations" to Good will tax deductible?
Posted on 6/12/14 at 10:19 am
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?
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?
9
Posted on 6/12/14 at 10:21 am to Napoleon
Hell yeah and they give you blank receipts every time you donate. Helps a ton when doing your taxes the next April. 
Posted on 6/12/14 at 10:21 am to Napoleon
Do you have a flea market?
I can't figure out what it is... you do.
I can't figure out what it is... you do.
Posted on 6/12/14 at 10:21 am to Napoleon
quote:
are "donations" to Good will tax deductible?
Yeah, that's why they give you a receipt when you leave.
Posted on 6/12/14 at 10:26 am to Napoleon
At least you know how horrible goodwill really is and why you should never donate to them 
Posted on 6/12/14 at 10:30 am to Napoleon
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.
Their CEO makes over $2 mil a year too. Bet most people don't know that.
So much for a charity.
Posted on 6/12/14 at 10:39 am to rintintin
quote:
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.
Which is what I plan on copying.
I have a regular company that does give back, but I would like to explore how to issue these receipts. Last year was the first time I ever used donations toward taxes and I saw the benefit of it.
My business is appliances. Many people throw old ones out. Mostly we get dryers that have a bad thermal fuse. I buy these fuses by the 100 pack at $.90 a piece. I have a guy I pay $10/hour clean them and touch up any paint. I would then sell this unit that I have $10.90 in for $150-200 with a warranty.
We buy units at $10-50 too (some more, like we bought a Sub-Zero broken yesterday for $350, it's an $11 part to repair, it's listed for $1500 now.
It's been lucrative. I have a store opening soon, and a nice eco-sounding name for it and I am splitting it off from my repair company. But I really wanted to see if I could give out tax donation forms. Do I need to start a Charity?
I was thinking about that too, but a totally unrelated one (homeless related).
But if I could tell the people with disposable incomes, the types who would rather spend $900 on a new unit than on $200 for a repair, that I could give them a tax break for the full resale value of the unit, I think that could be helpful.
I don't want units plucked from the trash, I want the nice stuff.
Posted on 6/12/14 at 10:42 am to CorkSoaker
quote:
give you blank receipts every time you donate. Helps a ton when doing your taxes the next April.
But wont help you a ton when you get audited. Been there, done that.
Posted on 6/12/14 at 10:55 am to Napoleon
You would have to register as a nonprofit organization. Donating to for profit organizations is not tax deductible.
Posted on 6/12/14 at 10:59 am to Napoleon
You should not put your plans to evade taxes on the internet
Posted on 6/12/14 at 11:11 am to VOLhalla
quote:
You would have to register as a nonprofit organization. Donating to for profit organizations is not tax deductible.
This
Posted on 6/12/14 at 11:13 am to rintintin
quote:
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.
LINK
Posted on 6/12/14 at 11:14 am to Napoleon
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 on 6/12/14 at 11:16 am to EveryonesACoach
Register as a 501(c) organization.
Posted on 6/12/14 at 11:17 am to Napoleon
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.
Good luck.
This post was edited on 6/12/14 at 11:19 am
Posted on 6/12/14 at 11:19 am to VOLhalla
Would that be a 501C3? Or along those lines.
NM, just noticed alatgr's post.
NM, just noticed alatgr's post.
This post was edited on 6/12/14 at 11:21 am
Posted on 6/12/14 at 11:23 am to lsunurse
Agree. I no longer donate to them nor buy from them and spread the word when I can.
Posted on 6/12/14 at 11:23 am to Napoleon
Don't get greedy, sounds like you'd do just fine without going non-profit.
Posted on 6/12/14 at 11:28 am to Alatgr
From the Snopes article:
And I'm not sure what your point is about them being a "private company." Almost all charities are.
quote:
Goodwill: Goodwill Industries International is not a business that takes in donated items and resells them for a profit. It is a not-for-profit organization that provides job training, employment placement services and other community-based programs for people who have disabilities, lack education or job experience, or face employment challenges. Goodwill raises money for their programs through a chain of thrift stores which also operate as non-profits.
The CEO of Goodwill Industries International is not Mark Curran, nor does he make $2.3 million a year. The current President and CEGoodwill: Goodwill Industries International is not a business that takes in donated items and resells them for a profit. It is a not-for-profit organization that provides job training, employment placement services and other community-based programs for people who have disabilities, lack education or job experience, or face employment challenges. Goodwill raises money for their programs through a chain of thrift stores which also operate as non-profits.
The CEO of Goodwill Industries International is not Mark Curran, nor does he make $2.3 million a year. The current President and CEO of Goodwill is Jim Gibbons, who in 2011 received a total reported compensation of $725,000.
Read more at LINK
And I'm not sure what your point is about them being a "private company." Almost all charities are.
This post was edited on 6/12/14 at 11:29 am
Posted on 6/12/14 at 1:34 pm to VOLhalla
quote:
You would have to register as a nonprofit organization. Donating to for profit organizations is not tax deductible.
Yet Goodwill is a for profit company?
So that is why I posed this question.
Even a non-profit keeps profits, as they pay their CEO's. It just confuses me.
I would donate about 33% of all incoming donations directly to charity.
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