Do You Need a Separate Check to Donate Your Commission?

[chelynn]

Do you have to write a separate check?

 

[chefann]

Yes, you do. You'll still get paid as usual, and then you'll need to cut a check to the organization. Save a copy for tax time, as you can deduct charitable donations.

 

[chelynn]

Thanks!!!

 

[legacypc46]

Ann,

When we donate part of our commission, is it always tax deductable? Or does it have to be to a recognized non-profit?

Thanks...oh wise and experienced one.

kris

 

[Paula R. Lewis]

I would think that that would depend on who you're donating it to. If it's to a charity, then it should be tax deductible, just as any other donation would be.

Paula

 

[chefann]

Donating your commission is just like making any other personal donation to a charity, subject to IRS (oohh-- dirty word!) guidelines. Because that's really what you're doing - cutting a check from your personal money to the organization. So track everything.

 

[beepampered]

Wouldn't other checks be deductible as a business expense?

 

[katie0128]

What "other checks" do you mean?

 

[beepampered]

Katie: I was just responding to Kris' question about wondering if an organization would have to be a non-profit. The implication is that you could write a check to an individual or organization but they wouldn't necessarily have to have the legal nonprofit status.

"Other checks" would be ANYTHING we use money for to increase our business. I thought EVERYTHING was tax deductible if you keep track.

 

[chefann]

I don't think that donating your commission is a valid business expense. It would be deductable as a charitable donation, though.
That's a good question for an accountant.

 

[AJPratt]

I always write it off and haven't had a problem. I always put it in PP and print out the report for my accountant. I have copies on file, but I just give him the report.

 

[missi.robbins]

I always write it off and haven't had a problem. I always put it in PP and print out the report for my accountant. I have copies on file, but I just give him the report.

I love the P3 expense and income tracking. It's letting me know - how far I am in the hole - since I just started! LOL It automatically puts in an expense everytime you order supplies, or samples, and do a consultant's gift.