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Tax Deductible Donation

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eeBs

Junior Member
What is the name of your state? California

I'm currently developing a website that will allow people to pay for ad space, where a percentage of the proceedings will be going to Breast Cancer Research. The idea behind this site is to allow business the opportunity to buy selective web space on my domain to advertise their business/organization. The way I would like to set this up is, As an incentive, allow a portion of the money spent on the ad space to be tax deductible for the company. For example, 90% of the proceeds will be donated, and I am selling space in amounts of $100. Company A purchases 10 spaces for a total of $1000, meaning $900 of that money will be donated. Then Company A is able to claim that $900 as tax deductible, since it is being donated to a tax deductible charity.

Specifically what I'd like to know is, is this even possible? also, Would I have to be a charity myself to make this happen? I've been reading as much as I can find online, but with no actual legal council available, its a bit tough making these connections myself. Any/all advice you guys can give would be appreciated! If you need any more information from me, feel free to ask! Thank you!

-Ryan
 


irsos

Member
Ad Space

If they just by ad space to advertise their business then it is already 100% deductible. Making most of it as a conribution could cause some of it not to be deductible due to income limitations on contributions.
 

eeBs

Junior Member
@ Irsos

I'm trying to comprehend what your wrote, could you try re-phrasing it maybe so I can understand? Thank you.
 

irsos

Member
Ads

I am telling you that the ad is already 100% deductible as advertising expense. By making even a portion of it a donation, you could actually make it non-deductible to some taxpayers. Why would anyone want to take a sure-fire 100% deduction and taint it. You are creating a disincentive by doing this.
 
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