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ABC Accounting Group
ABC Accounting Group, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 712
Experience:  Business Consultant/Accounting Manager
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My company is doing a huge holiday giving effort and

Customer Question

My company is doing a huge holiday giving effort and adopting 24 families for the holidays. We want to make donation easy and set up a group paypal or venmo, but are there tax implications for this?
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: The nonprofit we are donating to has tax forms, etc but this is upwards of $30,000 that would be sent through paypal/venmo under one person's name.
Submitted: 11 months ago.
Category: Tax
Expert:  ABC Accounting Group replied 11 months ago.

No tax implications - as long as it is going to a 501-3(c) non-profit . However, Paypal does take a percentage of the sales.

Expert:  ABC Accounting Group replied 11 months ago.

Here is a link I found to set it up:

https://www.paypal.com/webapps/mpp/donations

Expert:  ABC Accounting Group replied 11 months ago.

The only corporate tax implication is that the items received to the corporation is revenue - then you would be able to deduct them, based on the limit:

Deduction is up to a maximum of 10% of a Corporation's net taxable income without consideration of NOL and Charitable contribution.

Let me know if you have any questions. Thank you.

Customer: replied 11 months ago.
Let me clarify my question - my company is a FOR profit. We are adopting families through a nonprofit. Our employees rarely have cash, so we want to make donation easy for them by setting up something online. The online account would be in my name, but the funds would go to the nonprofit. Would I have any tax implications for thousands of dollars passing through my paypal or venmo?
Expert:  ABC Accounting Group replied 11 months ago.

I totally understand - thank you for the confirmation.

For Paypal, the funds usually need to go into a bank account - I would set up a separate bank account for this - this will help to avoid any tax questions, etc.

Expert:  ABC Accounting Group replied 11 months ago.

You can also allow Paypal to send the funds directly to the non-profit. There would be no tax implications, either.

Expert:  ABC Accounting Group replied 11 months ago.

We can set up a phone call if you want. Hope this was helpful. If not, you will not be charged.