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

Thanks for everyone for telling your experiences and for your advice.
Since I incorporated as a Subchapter S, I will definitely get some
accounting advice prior to discounting for non-profits.
 
Thanks!
Dan Waters
Quality Process Solutions

-----Original Message-----
From: accessd-admin at databaseadvisors.com
[mailto:accessd-admin at databaseadvisors.com] On Behalf Of John Bartow
Sent: Thursday, March 06, 2003 9:22 AM
To: accessd at databaseadvisors.com
Subject: RE: [AccessD] Rates: For-Profit vs. Non-Profit


This is what I was told to do 4 years ago by my accountant. I spell it
out up front and tell the client that because I work for a service
corporation that I can't deduct my services as a donation - give them a
shoulder shrug and tell them it would be easier for me if I could but
that's the tax law. They are usually glad to hear it. If they aren't
they apparently don't need my services. There are plenty of non-profit
orgs in the world that will be appreciative.
 
Good Luck,
JB

-----Original Message-----
From: accessd-admin at databaseadvisors.com
[mailto:accessd-admin at databaseadvisors.com]On Behalf Of Jim DeMarco
Sent: Thursday, March 06, 2003 7:22 AM
To: accessd at databaseadvisors.com
Subject: RE: [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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