Pro Bono 2424 Responses

Last post: 1 year, 11 months ago | Thread started: Mar 12, 10, 9:31 a.m.

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• gramme

  I read somewhere recently that pro bono work isn't tax deductible. Is that true everywhere in the U.S.?

  Now, charitable donations are obviously tax-deductible. So what would prevent a designer from claiming pro bono work done for nonprofits as charitable donations? The way I see it, there's a vocational sacrifice involved, i.e. the donation of otherwise billable hours; and if it's a nonprofit in the habit of receiving donations, then why can't design work be considered a donation of work in trade, written off for the value of the work?

  Mar 12, 10, 9:31 a.m. – Permalink

• ernexbcn

  I came here looking for some U2 news

  • lol– goldieboy1/2

    yes!– oblib2/2

  

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  Dog-earMar 12, 10, 9:32 a.m. – Permalink

• utopian

  I should receive a tax-deductible for all the BS I post on QBN.

  • only 30% is deductible– persona_non_grata

  

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  Dog-earMar 12, 10, 9:33 a.m. – Permalink

• gramme

  |:|

  

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  Dog-earMar 12, 10, 9:49 a.m. – Permalink

• lumedia

  Solution: Bill them, then send the money back as a charitable donation.

  • < This money has to be exchanged...– rodzilla

  

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  Dog-earMar 12, 10, 9:51 a.m. – Permalink

• duckofrubber

  You need to get a letter from the non-profit that acknowledges your donation with dollar amount in order to claim it as a proper deduction.

  • meh.– rodzilla

  

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  Dog-earMar 12, 10, 9:54 a.m. – Permalink

• nosaj

  You aren't being taxed for the time you aren't billing for - what are you looking to have tax-deductible?

  

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  Dog-earMar 12, 10, 9:56 a.m. – Permalink

• gramme

  @ duck... yeah I've gotten one letter from a recently completed nonprofit job. Just wasn't sure if I can actually claim a charitable donation deduction.

  @ nosaj, I'd be looking for a deduction for charitable donation, not for unbillable time per se.

  

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  Dog-earMar 12, 10, 10:20 a.m. – Permalink

• bjladams

  you can only donate goods, not services

  • tangible stuff, makes sense– ernexbcn1/3

    depends on what state you live in– scarabin2/3

    see my following post– scarabin3/3

  

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  Dog-earMar 12, 10, 10:54 a.m. – Permalink

• johndiggity

  pro-bono to a 503c organization = tax deductable
  pro-bono to a for profit (non 503c) = free work

  

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  Dog-earMar 12, 10, 11:04 a.m. – Permalink

• nosaj

  Say you made $50,000 in a year and contributed another $50,000 of your time to a charity and you were able to claim pro bono work done for nonprofits as charitable donations you would not pay any income tax at all.

  If you made $50,000 in a year and contributed $50,000 cash to a charity you would have no income to tax - thus a $50,000 tax deduction.

  

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  Dog-earMar 12, 10, 11:04 a.m. – Permalink

• scarabin

  AIGA on only charging tax for goods, not services:

  http://www.google.com/url?sa=t&a…

  

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  Dog-earMar 12, 10, 11:05 a.m. – Permalink

• bzsaw

  Consult a CPA in your state for the details. In Oregon you cannot write off work unless there was a transaction. I actually had to charge the non-profit and then donate the money back to show the donation.

  I know, it doesn't make any sense.

  

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  Dog-earMar 12, 10, 11:48 a.m. – Permalink

• lukus_W

  I'm very much anti Bono.

  • (I'm ashamed at my own stupidity)– lukus_W

  

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  Dog-earMar 12, 10, 11:52 a.m. – Permalink

• gramme

  bzsaw, how exactly did you go about that? Did you invoice them and then as a line item discount your entire fee?

  BTW there are two specific clients in question. Both are various kinds of registered nonprofit. One's pro bono, the other is drastically discounted. The latter has already given me an official letter recognizing the amount of discount.

  I do understand the difference in working for those kinds of business vs. just giving it away to a for-profit.

  • Or was there actually an exchange of funds?– gramme1/3

    Yes an exchange of funds so that you can show you cut a ck for that amount. BTW the non-profit also gets educated on what you're providing them in the process.– bzsaw2/3

    ...on what you're providing them in the process.– bzsaw3/3

  

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  Dog-earMar 12, 10, 12:21 p.m. – Permalink

• gramme

  quick bump for bzsaw...

  Did they pay you the full amount before you refunded it?

  

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  Dog-earMar 12, 10, 3:01 p.m. – Permalink

• spraycan

  ask madoff!
  

  

  

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  Dog-earMar 12, 10, 3:04 p.m. – Permalink

• ethanfink

  I asked my accountant in NY, he said no-can-do...

  The getting paid, then donating idea though sounds legit :)

  • I'm dubious that would make things legit.– boobs

  

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  Dog-earMar 12, 10, 3:05 p.m. – Permalink

• nosaj

  What could you gain by getting paid then donating it back? Sure that amount would be tax-deductable but your taxable income was also that much more. It would be a wash, no different then not charging to begin with.

  

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  Dog-earMar 12, 10, 3:46 p.m. – Permalink

• lukus_W

  If you weren't paid - how on earth can you pay tax in the first place?

  

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  Dog-earMar 12, 10, 3:55 p.m. – Permalink

• gramme

  lukus, maybe I'm thinking of this in too simplistic terms, but when I give money to my church, I get a tax deduction for it. So the idea is that I donated X work which is worth X dollars. It's time that could ostensibly be spent doing paid work, i.e. it could be seen as a donation.

  What nosaj says makes sense though, about getting paid and then donating it. I think. I'm horrible at algebra. Also, it's Friday and I'm still working. Mind = fried.

  

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  Dog-earMar 12, 10, 4:24 p.m. – Permalink