What is the name of your state (only U.S. law)? WA
Not sure if this was the right category...
Here is a little background info.
I run a website which helps members of the Drum and Bugle Corps activity (aged 14-21) gain donations to pay for their fees by creating a profile which they can share with potential sponsors. Sponsors can also sign up and find members to donate to. Each member belongs to an organization (several around the country) which fall under the activity and are all 401c3 non profits, however all donations going to those members are NOT tax deductible since they are applied to their fees (or tuition).
Once a sponsor makes a donation (pledge) the site will give the sponsor the groups information so that the sponsor can send in their donation directly to the organization. Currently there is no money going through my site. The site was launched in October and has already raised over $14k in donations for the members.
I originally wanted to make the site a non profit as well, but that doesn't look like it will be possible for awhile.. so my question is this:
Would it be legal (tax wise, etc) to accept the donations (I could call it anything I want) directly through the site via paypal, check, etc.. keep a small percetage (5-8%) to cover paypal fees and site maintenance? I would send the balance of the donation directly to each group myself. Currently I am paying for everything out of pocket including merchandise and promotional items, and programming the site myself (I'm a web developer).. I'm just trying to find a way to make a little income off of the site to cover some of the costs of running it.
Is there a good of doing this? I know there is a limit on sending donations to an organization based on your income, but I believe that only applies to tax deductible donations.. since these donations are not tax deductible, is there a limit or anything on what I can send if I was to make these donations myself?
Any advice would be great, thanks!
Not sure if this was the right category...
Here is a little background info.
I run a website which helps members of the Drum and Bugle Corps activity (aged 14-21) gain donations to pay for their fees by creating a profile which they can share with potential sponsors. Sponsors can also sign up and find members to donate to. Each member belongs to an organization (several around the country) which fall under the activity and are all 401c3 non profits, however all donations going to those members are NOT tax deductible since they are applied to their fees (or tuition).
Once a sponsor makes a donation (pledge) the site will give the sponsor the groups information so that the sponsor can send in their donation directly to the organization. Currently there is no money going through my site. The site was launched in October and has already raised over $14k in donations for the members.
I originally wanted to make the site a non profit as well, but that doesn't look like it will be possible for awhile.. so my question is this:
Would it be legal (tax wise, etc) to accept the donations (I could call it anything I want) directly through the site via paypal, check, etc.. keep a small percetage (5-8%) to cover paypal fees and site maintenance? I would send the balance of the donation directly to each group myself. Currently I am paying for everything out of pocket including merchandise and promotional items, and programming the site myself (I'm a web developer).. I'm just trying to find a way to make a little income off of the site to cover some of the costs of running it.
Is there a good of doing this? I know there is a limit on sending donations to an organization based on your income, but I believe that only applies to tax deductible donations.. since these donations are not tax deductible, is there a limit or anything on what I can send if I was to make these donations myself?
Any advice would be great, thanks!