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Invoice for charitable donation?
  
 
carriedaway
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p.1 #1 · p.1 #1 · Invoice for charitable donation?


Hi everyone!
I put a bid in for architectural photos for a revitalization project that's being done in a local town. They liked my portfolio best, but I was out of their budget. They said they could offer some of the work back as a charitable donation since they're a 501c3.

I said great! I would love to be a part of what's happening. So onto the question: how do I invoice this? Do I keep the quote the same, and add a line at the bottom about the donation and take it off the total? Or is there another special form I need to fill out?

Thanks a ton if anyone can help me out!



Apr 07, 2017 at 07:50 PM
c.d.embrey
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p.1 #2 · p.1 #2 · Invoice for charitable donation?


I'd talk to my accountant. A good accountant is worth their fee, and will save you money.


Apr 07, 2017 at 08:33 PM
Daniel Smith
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p.1 #3 · p.1 #3 · Invoice for charitable donation?


Definitely check with a Professional on the money side. "Donations" are a minefield that can quickly trigger an Audit. You are limited to what can be deducted and actually called a donation. A professional will help you get it figured out.


Apr 08, 2017 at 12:17 AM
tcphoto
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p.1 #4 · p.1 #4 · Invoice for charitable donation?


I'm not a tax professional but I do know that you cannot write off your perceived value of a project. You may be able to invoice your normal fee and then make a donation after processing their check.


Apr 08, 2017 at 01:34 PM
markd61
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p.1 #5 · p.1 #5 · Invoice for charitable donation?


My experience in talking to many accountants on this issue is that one cannot deduct the cost of services donated. One can only deduct the cost of materials delivered.

AND when saying cost, they mean what you paid for the print, frame or whatever. Not what you retail it for.

Check with an accountant to see what local regs apply.

However, I donated photo services to a political candidate one year and they had to list it on their financial disclosure as "Gift in kind'. There was no tax impact for me as I could not deduct it but the value was reflected in their disclosures.

A strategy for this project might be listing the full price and then discounting to the fee they can afford. Thus you have a record of your usual fee but also a goodwill record.

OTOH, I was once told by a mentor many years ago that a professional should never discount their fee. "Full price or free" was his rule. Thus he would have a standard policy on every job.

A real peril of discounting and showing that discount is that you now have a record of discounting.



Apr 09, 2017 at 08:10 PM
 

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Peter Figen
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p.1 #6 · p.1 #6 · Invoice for charitable donation?


"You may be able to invoice your normal fee and then make a donation after processing their check."

This is exactly how I understand you have to handle this. You just have to get them to agree to it in advance.



Apr 09, 2017 at 08:53 PM
carriedaway
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p.1 #7 · p.1 #7 · Invoice for charitable donation?


Thanks everyone for taking the time to respond. I will definitely be talking to my accountant.


Apr 11, 2017 at 12:55 PM
Oscarsmadness
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p.1 #8 · p.1 #8 · Invoice for charitable donation?


tcphoto wrote:
I'm not a tax professional but I do know that you cannot write off your perceived value of a project. You may be able to invoice your normal fee and then make a donation after processing their check.


In my experience, this is what is gonna have to happen.



Apr 11, 2017 at 07:06 PM
gschlact
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p.1 #9 · p.1 #9 · Invoice for charitable donation?


If you are willing to give them the $X donation, there s no tax benefit to collecting the entire invoice and them paying them $X. Therefore why not keep it simple, and invoice them $Y-X?


Apr 12, 2017 at 11:30 PM







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