I work for a private, non-profit organization serving people with disabilities in Washington DC and Virginia. We are a tax-exempt, nonprofit.
has offered to become "affiliated" with us and support us (after we did work benefitting one of the owners' friends). The owners operate Thrift Stores that accept donations from the public and sell what is donated (similar to Goodwill
). The business is NOT a non-profit.
It has offered to provide us with 10% of the sales proceeds as a donation to help my organization. In return, we would allow it to publicize that it "supports" my organization.
The business would also display information about my organization, and distribute informational brochures about services to people with disabilities, etc.
So there would be a benefit to my organization in that we would receive increased donations AND people would receive information about their rights AND would learn about my organization; which would lead to us being able to help more people, etc.
There would be a benefit to the Thrift Stores, I presume, from the "halo effect" of more people shopping there and buying more because they are affiliated with/support my organization.
I have two questions: (1) is there anything inherently wrong/illegal with this arrangement - i.e. any fraud in letting them say they "support" us and, I am assuming, they will then benefit from people who will then shop there and support them because they support us? and;
If not, then
(2) they have asked if people who donate material to them can then take a tax deduction since proceeds from the sale will "support" my nonprofit organization (remember, they are NOT a nonprofit). They feel this will lead people to donate more, which will increase their sales (benefitting them) and their support to us (benefitting us). Is this legal?