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    6 Replies Latest reply on Dec 30, 2010 12:00 PM by HS_Accounting

    Can a partnership business accept donations

    ValleyStars Newbie
      I would like to know if a partnership business can accept donations from the community for the business, the purpose is to put the money in the business for the kids so that they can go places that they have never been, that is what the business is about.

      Thank you
        • Re: Can a partnership business accept donations
          JMMCPA Newbie
          Hello. The answer is 'it depends'. And it depends on several things. First, is your business organized as a 'not-for-profit' organization? If you are a daycare, for instance, you are not a 'not-for-proft' but rather a 'for-profit' business. The rest of the answer depends on the answer to that question. If you will post your response, I'll try to answer the other part of the question - how to treat monies given to your business by the community.
          • Can a partnership business accept donations
            LUCKIEST Guide

            Fiscal sponsorship can enable projects to share a common administrative  platform with a larger organization, thus increasing efficiency. In addition to  legal status, sponsors can provide payroll, employee benefits, office space, publicity,  fundraising assistance, and  training services, sparing projects the necessity of developing these resources  and allowing them to focus on programmatic activities..

             

            Projects may seek fiscal sponsorship for various reasons: an anticipated  short lifespan, improved access to funding, increased credibility, and low-cost  financial and administrative services. Fiscal sponsors can also assist nascent  projects in developing the necessary organizational capabilities to eventually  spin off as independent non-profits.

             

            It is best to talk to your accountant.

             

            Good luck

             

            • Can a partnership business accept donations
              Newbie

              savings accounts uk

               

              Hello. The answer is 'it depends'. And it depends on several things.  First, is your business organized as a 'not-for-profit' organization? If  you are a daycare, for instance, you are not a 'not-for-proft' but  rather a 'for-profit' business. The rest of the answer depends on the  answer to that question. If you will post your response, I'll try to  answer the other part of the question - how to treat monies given to  your business by the community.

              • Can a partnership business accept donations
                Newbie

                i don't think think so. because it is very unethical to run a business based on donations. it depends on the type of business one is running as if you are running a business to help the poor by any means, donations can only accpted then.

                • Can a partnership business accept donations
                  Wayfarer

                  Hi ValleyStars,

                   

                  This is definitely a question/project for your accountant. If you have created this business specifically for non-profit purposes, you need to go through all the related formalities to have your business recognized as a non-profit business for federal and state purposes.

                   

                  You can't take an existing for profit business and start performing non-profit activities. The business would have to be restructured. Depending on your state's laws, you can convert an existing for-profit business entity into a non-profit entity. At the end of the day, you should sit down with your accountant and devise a game plan.

                   

                  Many companies run separate for-profit and non-profit entities at the same time. A portion of the former's profits are contributed to the latter.

                   

                  Good luck with your venture(s).

                  • Can a partnership business accept donations
                    HS_Accounting Wayfarer

                    If your business is 'for profit' you can accept donations, however, these proceeds would be taxable.  As others mentioned in this thread its a good idea to discuss with your accountant whether you should be structured as a for profit or not-for-profit business. 

                     

                    Good Luck