My CPA (and good friend) of many years says you cannot deduct for pro bono work if you don't charge anything
HOWEVER, if you countersign a payment (effectively, they pay you xx dollars for a job, but then you sign it back to them as a donation), you CAN deduct, as you now have effectively charged for your services.
I actually had my CPA write about this on my blog, because a lot of people believe that an invoice that charges xxx dollars as a fee, but then offers a courtesy or pro bono discount, will allow you to deduct expenses. This is incorrect.
More on this on my blog. Link below!
Max Simbron
PShizzy: The Blog, is Alive! at www.PShizzy.com ...Show more →
I'll have to bring this up with my CPA when I see her next week, but the last time we discussed something like this, my impression was that this is a wash:
1) You receive a payment - which increases your taxable income by $X.
2) You receive a deduction - which decreases your taxable income by $X.
For simplicity sake, it is a wash. We won't go into the charitable contributions made by self-employed persons, limited liability companies, and S-Corporations (all which handle the contribution differently.)
If you can get the non-profit to pay for your services, then this method does not apply to you. Get your check and give back 10% if you want.
The point being made is that if you were going to do it for free (or donate your services) anyway, you might as well get the tax deduction for your time.
KABeach wrote:
....my impression was that this is a wash:
1) You receive a payment - which increases your taxable income by $X.
2) You receive a deduction - which decreases your taxable income by $X.
The net difference in your taxable income is $0.
I'd sure like to know what I'm missing on this...
That's the way I interpreted is also
I'm guessing people do this if the charity simply has no cash in their checking account to pay any invoice at all. But now the risk is on you as you have this "thing" on your return that may red flag you to the IRS.
PShizzy wrote:
The point being made is that if you were going to do it for free (or donate your services) anyway, you might as well get the tax deduction for your time.
But if you are doing it for free, and choose not to do it this way, you still come out the same, but without this potential IRS red flag.
And when you are done free, then look over your shoulder. There will be three guys offering the same thing ... cutting your legs out from underneath you. What will you say to you prospective client about why she should not go for a "free" wedding and pay you instead?
Have you thought of it in a responsible way towards the client? I mean, I know you (and everyone else with an SLR ) want to start this up (probably because you see easy money to get more gear with) but a wedding is not like a family picnic. This is a very important one time (sometimes ) occasion. What level of service are you able to provide? Do you have two of everything? Two flashes, two bodies and appropriate f 2.8 lenses?
What if you completely ruin their day? What if their mother in law ( I don't know why its always the in-laws but it seems to be) decide to sue you?
I don't mean to be grim ( and especially rude) but these things are really something that you should consider. The tried and true way to get experience enough to merit the title "wedding photographer" is to apprentice first. Get the right level of experience and equipment. Get good contracts. Get insurance.
Then you will have no impulse, I suspect, to give your service away for nothing. Digital has made wedding photographers sprout up like mushrooms - most wanting to do "just a few for free". Its the bane of wedding photography.
The only thing I do for free personally are dog charities. I won't do a wedding for free for a friend. It devalues it. Its getting to the point that couples don't mind paying $3000 for flowers, $4500 for catering ... but want the photographer to do it for $800 ... or free. Then they have pro results in mind. Funny how that works.
And word travels. Do one for free .... and five other couples will be told how smart they were and got the photographer for free. Or ... how they can't believe it how bad their pictures turned out. Wedding photographers seem to slowly be seen in a worse and worse light ... I've noticed.
You need to give yourself some "Self-Assignments" before seeking out business owners to "practice" on.
What happens when you get "clients" for whom you're working for free, but the end results (ie: the photos) aren't of marketable quality? Now you have someone who is expecting to receive good photos and you have nothing to provide.
Either make up your own assignments for practice/portfolio, or if you feel the need to experiment, like already mentioned, hand-pick who you work with and make sure you get something out of the deal that amounts to more than the experience. Example: You see a certain company advertising consistently in a popular local publication, you can approach them to offer photography services, provide photos they can use in their advertising, and in turn they have their ad re-designed in an elegant fashion to mention your business as the photographer. They're still paying whatever awful rate for their ad, they get nice photos at no charge, and you get the benefit of co-advertising without any cost to you. If you have other friends who run their own businesses and you think they might benefit from photography, you should target them before you go running mass advertising offering free services.
When it comes to restaurants, you can always ask if they mind if you bring some gear in the next time you come in for an early lunch or dinner on a typically slower day (to beat the rush, for ease of setting up gear). This way you get to shoot your food for practice, they're not wasting any money/food for a shoot that might not pan out because you're a paying customer, and there are no expectations of either party. There's no perceived risk on anyone's part and no reason at all for them to turn you down. If you produce images you can sell back to the restaurant, or they like what you did and want to hire you for more, it's a bonus.
I get a cynical kick out of all the posts in the "Gigs" section of Craigslist looking for photographs to cover an events, provide headshots, or assist with a promising business venture . . . all without any compensation. As photographers, our time, investment, and experience all have a monetary value.
I volunteered hundreds of hours as an animal cruelty investigator and SPCA officer. Took lots of photographs of crime scenes, as a result. Before that, I volunteered with a local shelter group . . . those are pro bono pursuits. Business, however, is business.
Free is not free. While you're dorking around trying to learn more about photography, the company is investing resources, if nothing more than time.
Since, by your own admission, you don't know what you're doing (if you did, you'd charge for it), there's a slim chance you'll actually produce something useable by whoever allows you to shoot. Bottom line, it will more than likely be a waste of time for them. I don't see where they'd benefit. If they're smart, they would decline the offer.
If you have some friends who'll indulge you, that would be the way to go. I don't see approaching strangers as a good idea.
I think Mike Pipes' post, above, is a little more productive a suggestion. I developed enough experience making something of a nuisance of myself at my daughters' and friends' birthday parties, family gatherings, etc., practicing the craft, to make it feasible to offer my services for pay later on without fear of embarrassment. Well, without TOO much fear, anyway.
Having first hand experience in charging nothing for my work and then attempting to transition into a profit-building business model, I can tell you it's practically impossible to get any business this way. In fact, I've lost several potential jobs from people approaching me for work expecting to pay nothing. Shooting for free sounds like a good way to build a portfolio, and it is, but you will soon find that there will never be a "right time" to start charging. People will always expect you to shoot for nothing, especially if you live in a small community where word gets around quickly.
My advice would be to always charge *something*, even if small. You can always get away with raising your prices from event to event as you start building your portfolio.
I don't understand this whole side conversation about shooting for charities as a way to get into the business.
mdude85 wrote:
Having first hand experience in charging nothing for my work and then attempting to transition into a profit-building business model, I can tell you it's practically impossible to get any business this way. In fact, I've lost several potential jobs from people approaching me for work expecting to pay nothing. Shooting for free sounds like a good way to build a portfolio, and it is, but you will soon find that there will never be a "right time" to start charging. People will always expect you to shoot for nothing, especially if you live in a small community where word gets around quickly.
My advice would be to always charge *something*, even if small. You can always get away with raising your prices from event to event as you start building your portfolio.
I don't understand this whole side conversation about shooting for charities as a way to get into the business. ...Show more →
Shooting for charities gets you out networking and allows you to be of service to organizations whose work you support. It's a wonderful marketing opportunity. It also gives you an opportunity to add to your portfolio.
Established small businesses no, but starving-artist theatre groups, or shoestring start-ups yes.
Rather than doing free work for the Moms and Pops why not do a doctumentary personal project on Mom and Pop shops? They're a dying breed in monopoly capitalism so think of it as social history. You still get some great shots for the portfolio and it's not really free work.
While I do shoot pro bono for a select group of charitable organizations, I am still very selective. Just because they claim charitable organization status doesn't immediately give them a free pass. I currently only shoot pro bono for two organizations and even that is limited. With regard to start up businesses I may offer some sort of one-time discount or trade but make them very aware that 1.) this is a special deal, and 2.) I don't typically make this type of exception. If you do not set those parameters up front, they will come to expect the same consideration each and everytime and before you know it word will get around and you will be known for your cheap pricing.
There can be some value in providing discounted and free services to some businesses and organizations. However, if you're not careful or vigilant you might find that you suddenly have the reputation not necessarily as the best provider of photographic services but rather the cheapest.
DO NOT work for free, or give away work for FREE or for a "photo credit"
If you are going to work for FREE, it should be one of the following:
1> an internship (where you benefit mostly by gaining valuable work experience with a business of like mind);
2> charities, one that you wish to have a close affiliation with;
3> work with another pro shooter (corporate / wedding / PJ) ... you help him at various assignments over a relatively short period of time, and he/she teaches you (and you learn) some marketable skills;
All these experiences will help you gain future work prospects!
The only free work I have done is for my church. They needed headshots of pastors, overseers, etc. We also did some "action" shots of the worship leader, youth pastor, etc to use on marketing brochures, etc.
Occasionally I will give discounts to friends, etc, but not for free.
mulder32 wrote:
The only free work I have done is for my church. They needed headshots of pastors, overseers, etc. We also did some "action" shots of the worship leader, youth pastor, etc to use on marketing brochures, etc.
Occasionally I will give discounts to friends, etc, but not for free.
My 2 cents.
And why did you do it for free for your church and not your friends? I would think that, for most professionals, it would be the other way around.
shatterkiss wrote:
And why did you do it for free for your church and not your friends? I would think that, for most professionals, it would be the other way around.
Because I am using the abilities and knowledge God has given me back to Him in a way by helping my church which helps further His kingdom. My camera equipment is His, not mine, so, rightfully so, I'm using it to honor Him. Hope that makes sense.
mulder32 wrote:
Because I am using the abilities and knowledge God has given me back to Him in a way by helping my church which helps further His kingdom. My camera equipment is His, not mine, so, rightfully so, I'm using it to honor Him. Hope that makes sense.
I am with shatterkiss...I put family and friends before other things in life. If anyone gets something done for free ( does not have to be photography ) it is family / friends first...everything else 2nd. Without family / friends...what do you have?
) occasion. What level of service are you able to provide? Do you have two of everything? Two flashes, two bodies and appropriate f 2.8 lenses?