[AccessD] Rates: For-Profit vs. Non-Profit

>>then mark as much as half of it as a donation or in-kind service<<
 
You can do it this way but note this:
I did bill a non-profit at full rate minus a deduction for donation and could not claim it as as deduction on my taxes.  I was told I had to bill in full, receive payment, and make the donation after the fact (which I don't think would have worked for the organization).  I used that discount to land the job thinking I could recoup a bit on taxes :-(
 
Moral of story: Check with your accountant first.
 
Jim DeMarco

-----Original Message-----
From: William Hindman [mailto:wdhindman at bellsouth.net]
Sent: Tuesday, March 04, 2003 3:37 PM
To: accessd at databaseadvisors.com
Subject: Re: [AccessD] Rates: For-Profit vs. Non-Profit


Dan
 
...I bill my normal full rate ...and then mark as much as half of it as a donation or in-kind service, whatever makes their accountants happy.
 
...billing full rate on paper keeps the value of your work in front of them and doesn't result in low ball references to others which tend to take your options away.
 
...billing at full rate and then donating half may also result in tax advantages for both of you depending upon how you're structured and how much is involved. 
 
...nonprofits often are recipients of grants which match funds raised elsewhere and may well use your donation as part of their offset while taking advantage of your billing price to boost their expenses for both taxes and fundraising purposes.
 
...talk it over with the nonprofit's money man and you may well help yourself as well as them.
 
William Hindman

----- Original Message ----- 
From: Dan  <mailto:dwaters at usinternet.com> Waters 
To: accessd at databaseadvisors.com 
Sent: Tuesday, March 04, 2003 3:24 PM
Subject: [AccessD] Rates: For-Profit vs. Non-Profit


Folks, 

I know that sometimes people will provide a lower rate to a non-profit organization, particularly if you believe in what they are doing.  I may get some work from a Non-Profit soon, and I was wondering if anyone has a general rule of thumb about how you reduce your normal rate, or how you might charge differently.  Also, are there any tax implications that you know of?

Thanks, 
Dan Waters 
Quality Process Solutions 



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