Non profit/Want ppl to write off what they paid me ??s

[hispet]

California.
don't judge the likelihood of my business succeeding, just the circumstances.

I want to open an office offering this specific stress relief therapy. I'm pitching it to employers saying for about 8% of what you pay now in direct and indirect healthcare cost per employee, I could probably reduce it by 40 % by increasing morale, health, and productivity and decrease preventable expenses (turnover, absenses) etc. i'd be selling a package that says, any one who works for you can utilize my services at no cost as often as they want. I just want to try to boost moral in a super cost efficient way, this service wouldn't replace health insurance. you could maybe compare it to a masseuse offering that package. some would go every week, some wouldn't go...Thats as short and sweet as I could describe it.

If it was true that I could save them 40% and cost only 8% of then great, I would generate return customers, and everyone benefits, but if It doesn't work out then I don't want it to cause a loss. So it's my understanding that I should apply to be not for profit.
I'm not sure if Not for profit is my objective, though, because I glanced at some of the steps to take to be a tax exempt or not for profit organization etc...and something caught my eye that said, NP companies income comes primarily from donations, not from selling their services.
What i want is to allow employers who use this service to be able to write off their expense, is there some other status that i could apply to the IRS for other than not for profit so that employers could write of the 8% that they would be risking?

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Would it be considered non profit to say, hey you can use these services for free if you are part of our Whatever Association and before you join we are going to force you to donate money to us but we are not for profit because we just turn that money right back into basic operation cost and researching our therapy further...?? or something to that affect?

I don't know. Dummy it down for me, is there a way to do this?

 

[FlyingRon]

I want to open an office offering this specific stress relief therapy. I'm pitching it to employers saying for about 8% of what you pay now in direct and indirect healthcare cost per employee,
I could probably reduce it by 40 % by increasing morale, health, and productivity and decrease preventable expenses (turnover, absenses) etc.

Where do you come up with those numbers. As an employer my health care costs are not affected by offering my employees a chance to go deal with non-professional providers. I can hear my United Healthcare rep laughing at even the thoguht of it. Absences and productivity, you'll have to convince me though with something real, rather than numbers you pull out of your posterior.

If it was true that I could save them 40% and cost only 8% of then great, I would generate return customers, and everyone benefits, but if It doesn't work out then I don't want it to cause a loss. So it's my understanding that I should apply to be not for profit.

You've lost me there. Not for profit applies to your business, not the benefit to others.

What i want is to allow employers who use this service to be able to write off their expense, is there some other status that i could apply to the IRS for other than not for profit so that employers could write of the 8% that they would be risking?

I can write off ordinary and customary business expenses regardless of whether you are a non-profit or not. It's not a charitable contribution if you get something of tangible value back. You seem to be deluded in your understanding of the tax laws.

Would it be considered non profit to say, hey you can use these services for free if you are part of our Whatever Association and before you join we are going to force you to donate money to us but we are not for profit because we just turn that money right back into basic operation cost and researching our therapy further...?? or something to that affect?

I'm not sure that would be legal for a non-profit, and it has no BEARING on the deductibility for the contributor.

You need a much heavier dose in business principles and tax law and probably what kind of regulatory issues you are going to get into practicing medicine without a license with your NP quackware.

Most local governments have some small business assistance that can hook you up with instructional material as well as the federal Small Business Administration.

 

[hispet]

My numbers are just bs. notice that the first line in the post. I meant don't judge the feasibility of my idea. just the circumstances. I'm not asking what your insurance rep thinks about me.

I know you can write off business expenses. but it's not black and white and you can't write off 100 of what your cost of benefits per employee amounts to, and there's certainly a difference between writing off say, health care costs vs. the flat screen tv in your waiting room.

NP quackware?? Why don't you focus on answering the actual question instead of running on the assumption that I'm going to be practicing medicine when I stated I was talking about a stress relief therapy and also said "compare it to massage." I'm fully aware of the regulatory issues that I would have to follow up. But that has "no BEARING" on what I'm talking about.

I also am aware that the sba irs and other organizations can hook me up with instructional material, as I am not in seventh grade and have done a little but more research than just daydreaming and pulling statistics out of my ass. I just figured you wouldn't need a twenty five page business proposal with full color pie charts and operations manuals. I like to listen to myself talk too, don't get me wrong, but I didn't ask for you to take this opportunity to respond to the feasibility of my business or the probability of it's success, I asked if there was anyone who actually knew what they were talking about who could point me in the right direction as far as finding out which of the 20 different kinds of non profit businesses that are described in Section 501 of the federal tax code would be applicable based on a vague and abbreviated description.

 

[Some Random Guy]

As FlyingRon pointed out, you are missing the purpose of the IRS regulations about charity and non profits.

What i want is to allow employers who use this service to be able to write off their expense, is there some other status that i could apply to the IRS for other than not for profit so that employers could write of the 8% that they would be risking?

As a non-profit business, YOUR company gets tax breaks in exchange for following the non-profit rules.
As a CHARITY, their business will be able to write off DONATIONS that are given with nothing received in return.

Since you are pitching that their businesses will get greater benefits in morale and productivity than what they are paying your company, it is not a charitable contribution that can be written off. However, it may be considered a valid business expense which can be use to reduce their company net income.

Since both your company services and their current inefficiencies are both expenses, your company should be tax neutral to them.

 

[fairisfair]

Why don't you just move to Nigeria and get on the internet?

She asks "sweetly"******************************************......

 

[hispet]

thank you to some random guy

 

[tranquility]

As others have mentioned, but may not have emphasized, forget about non profit or charity or donations. You are trying to open a business for profit where you will exchange services for pay.

The businesses you offer your services to can deduct payments to you for services as long as they are ordinary and necessary expenses for doing business. "Ordinary and necessary" is a two prong test with many rules based on case law and compared to the particular facts and circumstances. It would be a rare business who could make a valid claim that daily massages to employees to improve morale as being deductible. Because of the vagueness of your proposal, it is impossible to give an opinion as to if your plan would be deductible by your clients.

Clearly, a motivational speaker would be deductible if the amounts paid were reasonable. A "massage therapist" who gives a happy ending would not. If the service is provided to individual employees, it may be considered income to the employee as a fringe benefit. If to the company, we get back to the ordinary and necessary problem. De minimis benefits would not be a problem for either the employee or the employer.

You see, it is impossible to tell if your plan is deductible without detailed disclosure of the plan. Talk to a tax professional for advice or provide a detailed description of the service to be provided.