How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Richard - Bizlaw Your Own Question

Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 8854
Experience:  30 years of corporate, litigation and international law
18695994
Type Your Business Law Question Here...
Richard - Bizlaw is online now
A new question is answered every 9 seconds

Simply put Id like to know what legal requirements there are

Resolved Question:

Simply put I'd like to know what legal requirements there are when using the word "donation." My friends and I are going to be working on a few businesses where we take money that comes in and part of that money goes to a cause, while the rest goes to the business/paying our team. Our organization at this point is not any kind of business entity, so can we legally refer to the entire amount of money that comes in as a "donation", even if it doesn't all strictly go to the cause? Would the use of the word donation technically require some kind of legal entity? Would we need to register as a 501c3, or would a simple LLC still work? Thanks!
Submitted: 2 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 2 years ago.

bizlaw :

What are you providing to the person making the donation and what is the "cause" that money goes to? How much of the money collected is going to the "cause"? Is the cause a tax exempt non profit?

Customer:

Usually it would be in exchange for any transactions the people we send to them result in. So almost like an affiliate arrangement or marketing agreement that is based on results. The cause would be a group like the Red Cross, or Feed the Children - a large, well-known, well-established, tax-exempt charity. 50% will go to the cause.

bizlaw :

What is the value of your services if it was provided unconnected to any charitable cause?

Customer:

The value is that they get more clients, usually at a more efficient rate than they'd currently be getting. Basically, we analyze their marketing, figure out how much they are currently spending on marketing, and then they make the "donation" which would be less than what they are currently spending - make sense?

bizlaw :

As I understand you provide a marketing analysis and a portion of the cost of your services goes to the "cause" is that correct?

Customer:

Yes.

bizlaw :

You would have to disclose what portion of your fee went to the "cause" and only that amount would be a tax deductible donation. You cannot claim that the total fee is a donation.


If you need further help please do not rate 2 stars/faces "Helped a little" or 1 star/face "I expected more".This is considered a negative rating against me.


Just reply to me via the "CONTINUE CONVERSATION" or "REPLY" button with the questions you have as I receive no compensation for my efforts for the lowest two ratings.


Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.



This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication

Customer:

Ok, one more question, does this rule change if the group doing the analysis is a "council" or other community organization, rather than a business?

bizlaw :

No. The council would be providing services for fees which is ordinarily taxable income.


If you need further help please do not rate 2 stars/faces "Helped a little" or 1 star/face "I expected more".This is considered a negative rating against me.


Just reply to me via the "CONTINUE CONVERSATION" or "REPLY" button with the questions you have as I receive no compensation for my efforts for the lowest two ratings.


Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.



This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication

Customer:

Ok thanks!

Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 8854
Experience: 30 years of corporate, litigation and international law
Richard - Bizlaw and 7 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA
 
 
 

Related Business Law Questions

Chat Now With A Business Lawyer
Richard - Bizlaw
Richard - Bizlaw
Business Lawyer
8854 Satisfied Customers
30 years of corporate, litigation and international law