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<DIV><SPAN class=840380715-06032003><FONT face=Arial color=#0000ff size=2>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.</FONT></SPAN></DIV>
<DIV><SPAN class=840380715-06032003><FONT face=Arial color=#0000ff
size=2></FONT></SPAN> </DIV>
<DIV><SPAN class=840380715-06032003><FONT face=Arial color=#0000ff size=2>Good
Luck,</FONT></SPAN></DIV>
<DIV><SPAN class=840380715-06032003><FONT face=Arial color=#0000ff
size=2>JB</FONT></SPAN></DIV>
<BLOCKQUOTE>
<DIV class=OutlookMessageHeader dir=ltr align=left><FONT face=Tahoma
size=2>-----Original Message-----<BR><B>From:</B>
accessd-admin@databaseadvisors.com
[mailto:accessd-admin@databaseadvisors.com]<B>On Behalf Of </B>Jim
DeMarco<BR><B>Sent:</B> Thursday, March 06, 2003 7:22 AM<BR><B>To:</B>
accessd@databaseadvisors.com<BR><B>Subject:</B> RE: [AccessD] Rates:
For-Profit vs. Non-Profit<BR><BR></FONT></DIV>
<DIV><SPAN class=313081613-06032003><FONT face=Arial color=#0000ff
size=2>>><FONT color=#000000>then mark as much as half of it as a
donation or in-kind service<<</FONT></FONT></SPAN></DIV>
<DIV><SPAN class=313081613-06032003></SPAN> </DIV>
<DIV><SPAN class=313081613-06032003><FONT face=Arial size=2>You can do it this
way but note this:</FONT></SPAN></DIV>
<DIV><SPAN class=313081613-06032003><FONT face=Arial color=#0000ff
size=2>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
:-(</FONT></SPAN></DIV>
<DIV><SPAN class=313081613-06032003><FONT face=Arial color=#0000ff
size=2></FONT></SPAN> </DIV>
<DIV><SPAN class=313081613-06032003><FONT face=Arial color=#0000ff
size=2>Moral of story: Check with your accountant first.</FONT></SPAN></DIV>
<DIV><SPAN class=313081613-06032003><FONT face=Arial color=#0000ff
size=2></FONT></SPAN> </DIV>
<DIV><SPAN class=313081613-06032003><FONT face=Arial color=#0000ff size=2>Jim
DeMarco</FONT></SPAN></DIV>
<BLOCKQUOTE dir=ltr style="MARGIN-RIGHT: 0px">
<DIV class=OutlookMessageHeader dir=ltr align=left><FONT face=Tahoma
size=2>-----Original Message-----<BR><B>From:</B> William Hindman
[mailto:wdhindman@bellsouth.net]<BR><B>Sent:</B> Tuesday, March 04, 2003
3:37 PM<BR><B>To:</B> accessd@databaseadvisors.com<BR><B>Subject:</B> Re:
[AccessD] Rates: For-Profit vs. Non-Profit<BR><BR></FONT></DIV>
<DIV><FONT face=Arial size=2>Dan</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>...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.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>...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.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>...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. </FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>...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.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>...talk it over with the nonprofit's money man
and you may well help yourself as well as them.</FONT></DIV>
<DIV> </DIV>
<DIV>William Hindman</DIV>
<BLOCKQUOTE dir=ltr
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A title=dwaters@usinternet.com href="mailto:dwaters@usinternet.com">Dan
Waters</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
title=accessd@databaseadvisors.com
href="mailto:accessd@databaseadvisors.com">accessd@databaseadvisors.com</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Tuesday, March 04, 2003 3:24
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> [AccessD] Rates: For-Profit
vs. Non-Profit</DIV>
<DIV><BR></DIV><!-- Converted from text/rtf format -->
<P><FONT face=Arial size=2>Folks,</FONT> </P>
<P><FONT face=Arial size=2>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?</FONT></P>
<P><FONT face=Arial size=2>Thanks,</FONT> <BR><FONT face=Arial size=2>Dan
Waters</FONT> <BR><FONT face=Arial size=2>Quality Process Solutions</FONT>
</P></BLOCKQUOTE></BLOCKQUOTE><CODE><FONT
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