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FIB - Scams 101 - Ye Olde Archives
Posted By: Geek In Response To: Any problems with this? Please critique (Cindy)
Monday, 21 March 2005, at 5:09 p.m.
From the description, I would have to say with my experience of non-profits, the items would have to be donated directly to the non-profit for use by the non-profit for the tax write-off to be valid. There is a non-profit form with the IRS, that would explain this better, you may want to check with the IRS, as far as liability? I can't see any, The terms of the arrangement should state that the "home-based business" is acting as an agent of the non-profit to promote the sale of items for the benefit of the non-profit.
Those who donate items to the non-profit for fundraising efforts, depending on the price of the items, may not want to spend the time filing the tax paperwork for , say $30 worth of tax write-off.
You may find more information on the IRS website on gifts and tax implications of working with/for non-profits.
Hope this helps.
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