Any tax experts? Quick question

[NathanJefferson]

I'm getting ready to start a project that will donate ALL proceeds to charity.

If all income is sent to a specific charity, would there be a tax implication for my LLC?

If the project goes well, I could see 10's, if not 100's of thousands of dollars being generated, and I and the other contributors will bear the development/promotion/etc costs and write a check for the exact top line amount that comes in.

I (or other contributors) expect to just write off the costs as a business expense but I'm a little afraid that I might end up getting a tax bill for the money donated...

Any help?

 

[kiddchaos]

I am not an expert, just asking if you are setup as a non-profit 501(c)(3) charitable organization?

 

[NathanJefferson]

I am not an expert, just asking if you are setup as a non-profit 501(c)(3) charitable organization?

Negative. I do have a standard LLC.

I was thinking of setting up a second non-profit specifically for this project but I would really prefer not to... Managing my LLC and all the other junk that goes along with it is already a pain, adding a non-profit to the mix would probably make me want to jump out the window...

 

[92ThoStro]

I bet people would be very hesitant

Does your LLC have an accountant?

 

[NathanJefferson]

Nope, no accountant yet, don't make enough money in the venture to have to really worry about it.

Now the collaboration I'm working on for charity could have a very large potential, which is good. The plan is to send over 100% of proceeds to Wounded Warriors, I'm just trying to make sure I won't get hammered by the tax man if I do that. (and have to pay a % of that 100% out of pocket, could easily bankrupt me...)

 

[hoosierdoc]

They may be able to help you with that if you call them. They have accountants and they like donations.

 

[kenjb]

Contributions to your LLC are NOT deductible by the "donors". However, if the LLC makes contributions to a qualified charity (a 501C3), then the owners of the LLC take the deductins personally on their 1040 Sch A. If you want to get tax breaks for all your donors, it seems that you should get 501C3 status for your organization and have them donate to that. Just don't have "Tea Party", "Patriot", or "constitution" in it's name or you may never get it.

Ref: 28 yrs with HRBlock and an enrolled agent.

kb

 

[Indy_Guy_77]

Before going too far, you're aware of how anti-gun that Wounded Warriors is, correct?

-J-

 

[SSGSAD]

Before going too far, you're aware of how anti-gun that Wounded Warriors is, correct?

-J-

Not only that, their payroll is HIGH..... less than half, actually goes to wounded warriors.... ( the Soldiers, Sailors, Airmen, and MARINES )..... learned it right here on INGO .....

 

[hoosierdoc]

Before going too far, you're aware of how anti-gun that Wounded Warriors is, correct?

-J-

Is that why Piers played for them on Celebrity Apprentice then?

 

[NathanJefferson]

Before going too far, you're aware of how anti-gun that Wounded Warriors is, correct?

-J-

Not only that, their payroll is HIGH..... less than half, actually goes to wounded warriors.... ( the Soldiers, Sailors, Airmen, and MARINES )..... learned it right here on INGO .....

Links please?

Suggestions of a better but similar charity?

 

[NathanJefferson]

Contributions to your LLC are NOT deductible by the "donors". However, if the LLC makes contributions to a qualified charity (a 501C3), then the owners of the LLC take the deductins personally on their 1040 Sch A. If you want to get tax breaks for all your donors, it seems that you should get 501C3 status for your organization and have them donate to that. Just don't have "Tea Party", "Patriot", or "constitution" in it's name or you may never get it.

Ref: 28 yrs with HRBlock and an enrolled agent.

kb

It wouldn't be contributions it would be sales, royalties from sales actually, just as if it were a normal sale. Its just that I want to give all the proceeds to the charity of choice, but not get hammered with taxes for the (non) income.

If it were tax neutral that would be great, I just want to make sure first.

Does that make more sense or change the response?

 

[Hawkeye]

Tax law is complicated. That's how I've made my living for over thirty years now, and I'm not complaining!

You can probably make your plans work out ok, but my advice is that you need to talk to a good tax lawyer or tax accountant. Preferably one who works in the charitable or non profit field. Any free advice from a forum like this is worth exactly what you paid for it. Including mine...

 

[Indy_Guy_77]

https://www.indianagunowners.com/fo...amendment/246024-wounded_warrior_project.html

https://www.indianagunowners.com/fo...51858-wounded_warrior_project_fundraiser.html

Hopefully Others will be along to offer recommendations for alternatives.

-J-

 

[Indy_Guy_77]

Here's some financial info on WWP: Charity Navigator Rating - Wounded Warrior Project

I'm not exactly sure what all that means, though.

 

[racr28]

As a 100% disabled combat veteran, I can say from my experience that there is no better military charity than Fisher House Home | Fisher House Foundation. This is who I support with my time and money.

Fisher House is one of the few military charities that has an A rating from charity watch.

The Semper Fi Fund Semper Fi Fund » Home is another highly rated charity. I have no experience with this one.

 

[Bill B]

operation homefront is a good one

 

[NathanJefferson]

Looking at operation homefront and Fisher house.

Thanks for the links!

I really like how homefront goes DIRECTLY to a specific need. Kind of amazing that they can set that up. Just want to make sure they are good ratio of dollars in dollars out.