businessbasics
Junior Member
What is the name of your state (only U.S. law)? Ohio
I own a business and have a few legal questions regarding obtaining inventory through charity.
Scenario #1
I own a bookstore. I sell lots of books, more than I can keep inventory for. I want to be able to obtain even more books to sell for profit while also helping charity. So I want to donate money to charity in the name of the business for every book donated to me by the public. Lets say my business donates $5 dollars to a charity for each book donated to me. Then, I resell the book for 20 dollars, earning my business a $15 dollar profit. I only have a business license at this point, not a charity license. Am I allowed to legally take donations with the promise to donate to charity? I will obviously keep the records to show the charitable donation. If this is legal, can I also accept the usual tax break for each charitable donation? or could the $5 dollar donation be written off as an expense for the business for purchase of inventory?
Scenario #2
Churches, schools, charities or other tax exempt organizations raise money by collecting books and having books donated to them. My business promises to buy those books from these organizations for $5 dollars each. This way the organizations are able to fund raise while supplying my business with low cost inventory. Is this legal?
Scenario #3
I own the bookstore. I apply and get my Charity license also. I then raise money for the charity by collecting books and selling those books to my bookstore to generate the actual revenue that then gets donated. I then obviously then make good on the donation. Is there any legal ramification to this?
So 3 questions here.
1. Can I take donations of books with the promise and follow through to donate $5 to a charity for each book, while using those books for the profit of the store?
2. Can I ask charities or tax exempt organizations to collect books that I buy from them for their fund raising, and then re-sell for profit in my bookstore.
3. Can I own both a business and a non-profit charity. Then have the charity collect books, then sell those books at a low cost to my business? The charity still raises plenty of money for the cause of the charity, while the business affords low cost inventory. Would this scenario be legal?
Thank You for answering my questions.
Gary
I own a business and have a few legal questions regarding obtaining inventory through charity.
Scenario #1
I own a bookstore. I sell lots of books, more than I can keep inventory for. I want to be able to obtain even more books to sell for profit while also helping charity. So I want to donate money to charity in the name of the business for every book donated to me by the public. Lets say my business donates $5 dollars to a charity for each book donated to me. Then, I resell the book for 20 dollars, earning my business a $15 dollar profit. I only have a business license at this point, not a charity license. Am I allowed to legally take donations with the promise to donate to charity? I will obviously keep the records to show the charitable donation. If this is legal, can I also accept the usual tax break for each charitable donation? or could the $5 dollar donation be written off as an expense for the business for purchase of inventory?
Scenario #2
Churches, schools, charities or other tax exempt organizations raise money by collecting books and having books donated to them. My business promises to buy those books from these organizations for $5 dollars each. This way the organizations are able to fund raise while supplying my business with low cost inventory. Is this legal?
Scenario #3
I own the bookstore. I apply and get my Charity license also. I then raise money for the charity by collecting books and selling those books to my bookstore to generate the actual revenue that then gets donated. I then obviously then make good on the donation. Is there any legal ramification to this?
So 3 questions here.
1. Can I take donations of books with the promise and follow through to donate $5 to a charity for each book, while using those books for the profit of the store?
2. Can I ask charities or tax exempt organizations to collect books that I buy from them for their fund raising, and then re-sell for profit in my bookstore.
3. Can I own both a business and a non-profit charity. Then have the charity collect books, then sell those books at a low cost to my business? The charity still raises plenty of money for the cause of the charity, while the business affords low cost inventory. Would this scenario be legal?
Thank You for answering my questions.
Gary