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  1. #1
    chown linux:users\ /world Hartmann's Avatar
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    Business Pro Bono?

    If I were to do some pro bono work for say, a church, the company would be able to write that off come tax season correct?

  2. #2
    busy Steelsun's Avatar
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    Usually - especially if you get the church to give you a receipt that the work was done as a donation. It get's iffy though, as the IRS sometimes disallows manpower hours as a charitable donation and will only allow you to claim your actual expenses.
    One way is to invoice the charity/church and then tell them to ignore it and claim it as an expense.

    There was a similar case/idea I read a few years back in some sales/advertising/business class: If you buy an add, or sponser an event, etc for a charity - you cannot claim it as a charitable expense - since you are getting value for the expense (advertising). There is a possibility that designing a website, etc for a charity could be seen in the same veign. However, you could probably claim it as a business expense (advertising) instead of a charitable expense. But the whole manpower issue is still there.

    Try calling the IRS's tollfree tax advice line. (Do it 2-3 times, because you may get differant answers each time)
    Brian Poirier
    SunStockPhoto: Stock Photos, Fine Art Photos, Event Photography

  3. #3
    SitePoint Enthusiast EightManagement's Avatar
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    You're half correct. You may report all of your labor hours as part of the charitable amount, you just need to document what you did during that time (keep a journal). DO NOT invoice the church because if you are audited, it could be considered unearned income, not charitable donation.

    With the IRS, always remember that their "fact line" is manned by non-accountant, non-CPA and non-tax attorney's; they're not always the most knowledgable. Seeking out a tax professional would be your best bet (in this case, you already have).

    Good luck.
    Joshua
    Owner/Accountant
    Eight Management
    Bookkeeping and Taxation Management

  4. #4
    chown linux:users\ /world Hartmann's Avatar
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    Thanks for the suggestions!


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