Legal Question in Business Law in California
Non-Profit Corporations
Does a company need to be structured as a non-profit organization for donors to claim tax deductions for their donations? i.e. If I operated a PRIVATE company and a donor contributed books and computers, could the donor claim a tax deduction?
4 Answers from Attorneys
Re: Non-Profit Corporations
The short answer to your question is that donations to a private for-profit company are not tax deductible.
Re: Non-Profit Corporations
Explaining what you would need to do to set up an entity which could offer tax deductions in exchange for contributions would take a long time, but a private, for-profit company would not be able to do so under any circumstances.
Re: Non-Profit Corporations
A private for profit corporation would not be an avenue for a donor to get an eligible tax deduction. A non-profit corporation, either public benefit or private non profit would be the entity which needs to be formed. Moreover, besides forming the entity, the necessary filings for exemption with taxing authorities need to be made and approval granted before donors copuld be assured there dontations would be exempt. Please feel free to call if you dsire to form this type of entity. (310)559-9445
Re: Non-Profit Corporations
The organization must be a qualified charity (by the IRS) for the gifts to be tax-deductible. Otherwise, the contribution is a gift, and any gifts over $11,000 to any individual are subject to gift tax.
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