• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Donations

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Y

yudawnn

Guest
What is the name of your state?I live in Texas, and me and a friend are trying to start a spiritual retreat. We have not decided weither or not we will become nonprofit. We desperately need funding, So my question is, is there some legal remifications if we openly ask for gifts or donations. (I tried reading the answers from the lady asking for breast augmentation, but that really didn't answer my question). I would be asking for donations from all over the country (and world if I could get the chance). Also, would it be better to become nonprofit, or stay private? :confused: Any help would be appreaciated. Thank you
 


C

charmander

Guest
Get gov status as non-profit before soliciting for donations. Check local city for regs regarding solicitation by non-prof org (do you get a break off from the business license? does solicitation for non-prof license cost less? ect.)

Oh yeah, if you have gov status as non-profit you can get certain discounts, Chamber of Commerce in many cities charge less for such org than businesses and professionals.

Are you thinking of making money off from this? or are you just doing this for purely altruistic reasons? I don't know what it take to convert a non-profit or not for profit org into a for profit company, but I can't imagine that its easy.

By the way what kind of spiritual retreat are you considering? I'm a web designer, I'm open to the possibility of helping (Although I am a for profit individual) . If this thing has wide spread appeals, you can also easily take small donations via the web with PAYPAL. They have this neato feature to donates small amount with credit card over the web, cost 2.9%+.30 per transactions though, same rate they charge businesses.

You might also have a higher cost of startup as a non-profit org. If it were a private business, all ya need is a ranch, a business license ($50) and an IRS EIN number and you're in business. Of course there's the issue of higher taxes with being a private business.

Found that one while googling on the subject, it might help ya out.
 

divgradcurl

Senior Member
So my question is, is there some legal remifications if we openly ask for gifts or donations.
You can ask for a gift or donation, and there are no problems with that as long as you are reporting the gifts as income on your taxes at the end of the year. Unless you are registered as a nonprofit organization, any "gifts or donations" made to you are taxable as income and the gifter may not deduct them from his or her income. So, as long as you follow the tax rules, you'll be okay.

Gifts are only nontaxable to the giftee when the giftee is an individual.
 
Y

yudawnn

Guest
Thank you, that is exactly what I needed to know. The people making the "gifts" would be aware that we are NOT a non profit organisation. We are really leary of becoming non profit because of the government regulations. I personaly don't think that the "tax break" would be worth it. I have no problem reporting the "gifts." :cool:
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top