Donation money, income, how to do taxes?

[red1837]

What is the name of your state (only U.S. law)?
Indiana

I have been collecting donation money for animals rescues for a small percentage of the money donated.

For example, I may collect $500 for the rescue, and keep $50.00 to cover my time and effort.

I create a donation page through youcaring.com and collect the money to my paypal account. I then pay the rescue their portion of the donations, and transfer my "pay" to my bank account.

I know I need to pay taxes on my income, but I'm concerned on how the donation money is being collected since technically, the public is donating to me, and then I in turn, transfer the money to the rescue.

Is every dime that I collect considered my income, since I am actually the person the funds are being sent to? Or is there some way that I can keep track and verify what I am being payed and what the rescues are getting?

How should I handle this?

Thank you.

 

[davew128]

Did you check with your state's attorney general's office to see if what you're doing is legal? You're operating a charity and paying yourself from it...

Not to denigrate what you're trying to do or the cause, but a public charity has to be registered.

 

[red1837]

Did you check with your state's attorney general's office to see if what you're doing is legal? You're operating a charity and paying yourself from it...

Not to denigrate what you're trying to do or the cause, but a public charity has to be registered.

Thank you. I checked my attorney generals website, and it states that I must register as a profesional soliciter, so it looks like I wont be doing this anymore.

 

[FlyingRon]

The donations you took are INCOME to you.