Have a Tax Question? Ask a Tax Expert
Hi and welcome to Just Answer!
I would suggest your client to separate for profit and not for profit activities into two separate legal entities.
"Donating goods" is not the business focus because there is no profit motive - without proper non-for-profit classification - it may be a hobby - but when we come to deduct expenses for tax purposes - many deductions would be disallowed.
To avoid confusions and disappointments with taxes - you client better to separate business activities and personal activities (including hobby activities) and track them on separate books.
Let me know if you need any help.