• 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.

Non-profit-vs-for profit

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

ct1

Junior Member
Kentucky (only U.S. law)?

am starting to set up a security company, but most of the people of which I would like to help are charities and the like. I want to attempt to help protect missionaries and humanitarian works in the bad parts of our world. They can not afford the standard rate of charge of the protection industry and I know that. I had already planed to give them at least a 60% discount on our services. At the same time I want to keep the option of the full private and government sector open also. I was wondering I could do somthing as a non-profit for the charities I would be helping instead of a for profit. I never planed to attempt to make any real profits off them any way. But if I could get donations to cover the salary of the protection specialist and expense my company could then offer our services free to the charities and allow them to reach some many more people keep their works safe and make sure shippments of food and meds make it to the people it should with out being stolen.
Thanks
 


Zigner

Senior Member, Non-Attorney
Kentucky (only U.S. law)?

am starting to set up a security company, but most of the people of which I would like to help are charities and the like. I want to attempt to help protect missionaries and humanitarian works in the bad parts of our world. They can not afford the standard rate of charge of the protection industry and I know that. I had already planed to give them at least a 60% discount on our services. At the same time I want to keep the option of the full private and government sector open also. I was wondering I could do somthing as a non-profit for the charities I would be helping instead of a for profit. I never planed to attempt to make any real profits off them any way. But if I could get donations to cover the salary of the protection specialist and expense my company could then offer our services free to the charities and allow them to reach some many more people keep their works safe and make sure shippments of food and meds make it to the people it should with out being stolen.
Thanks
Yours is not a legal question.
Consult with a local tax professional
 

tranquility

Senior Member
Here I was thinking all the tax, um, laws were laws. Go figure.

To the OP, your plan really doesn't work. To describe why would require you to sit and think about what you want to do and what you are trying to accomplish. The amount of effort and record-keeping required would be enormous, and you're talking about international issues.

Sell your services cheaply to the charities. Maybe at your cost if you're so inclined. It will help them and helps you keep a quality staff.
 

Antigone*

Senior Member
Here I was thinking all the tax, um, laws were laws. Go figure.

To the OP, your plan really doesn't work. To describe why would require you to sit and think about what you want to do and what you are trying to accomplish. The amount of effort and record-keeping required would be enormous, and you're talking about international issues.

Sell your services cheaply to the charities. Maybe at your cost if you're so inclined. It will help them and helps you keep a quality staff.
He could also offer them a "charitable org discount" from the standard pricing and account for a deduction or expense that way, couldn't he?
 

tranquility

Senior Member
A discount or a lowering of price makes no difference. The amount the OP takes in will be income and the amount the OP pays out is an expense. There is not really a charitable deduction for the donation of services but for the cost of the services to the one who donates. (You get the cost and not the purported value. [generally] So, it doesn't really make a difference how you label it.
 
Last edited:

tranquility

Senior Member
Yes, but that does not mean that an attorney is the best/most cost effective solution to a BUSINESS MATTER.
The OP asked a legal question. Just because it has to do with a business matter does not make it a non-legal question. If you look at a venn diagram of business matters and legal questions, you'll find quite a bit of overlap.

But, thanks for playing. The OP and all who have read have gained the full value of your input I'm sure.
 

Zigner

Senior Member, Non-Attorney
The OP did NOT ask a legal question. He would be better served by a consultation with a local tax professional. Or, do you disagree?
 

tranquility

Senior Member
Please educate us as to what a "legal question" is.

You see, I gave a summary of the law on the matter as related to the OPs plan. On the other hand you gave....what was it you were giving again?
 

davew128

Senior Member
The OP did NOT ask a legal question. He would be better served by a consultation with a local tax professional. Or, do you disagree?
I disagree partly, because most tax professionals only get involved with non-profits (or those that think they are) grudgingly. It usually takes an attorney to actually draw up the documents and application for tax exempt status.

Personally I avoid them as a general business decision based on cost/benefit.
 

Find the Right Lawyer for Your Legal Issue!

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