I've also been told by a couple different accounts over the past few years that pro-bono design and/or consulting work is never deductible. I would love it if anyone could share more info on this if it is indeed possible. Any accountants out there in Hidden-Tech? ______________________ Bronwen Hodgkinson bronwen at cdevision.com 413.532.6100 cdeVision, LLC 4 Open Square Way Studio 205 Holyoke MA 01040 www.cdeVision.com -----Original Message----- From: hidden-discuss-bounces at lists.hidden-tech.net [mailto:hidden-discuss-bounces at lists.hidden-tech.net] On Behalf Of Tish Grier Sent: Thursday, December 04, 2008 10:13 AM To: Baer Tierkel Cc: Hidden Tech Discussion List Subject: Re: [Hidden-tech] Re: pro bono work ** Be sure to fill out the survey/skills inventory in the member's area. ** If you did, we all thank you. I think what the IRS means is time you give volunteering--which would be different than time associated with volunteering to do a job directly associated with your profession. For example: you can't deduct volunteer time for mentoring young people or for a conversational english group. These might be considered the same as donating blood (the example the IRS is giving) But, if what you are doing--say, design work--is something you would normally charge for doing, and is not something you would necessarily do for personal, off-the-clock reasons then I believe it might be considered a service donation vs. just a time donation. What the IRS is looking to avoid is people wanting to deduct their time/services for tasks that are directly, specifically volunteer work--like donating blood. Blood isn't a particular skill and not something you'd necessarily charge someone for donating (well, most people anyway ;-) ) This is one of those funny gray areas that many accountants who don't deal directly with 501 (c) 3's aren't going to fully understand. Best, Tish --- On Thu, 12/4/08, Baer Tierkel <baer at sweetmojo.com> wrote: > From: Baer Tierkel <baer at sweetmojo.com> > Subject: Re: [Hidden-tech] Re: pro bono work > To: tishgrier at yahoo.com > Cc: "Hidden Tech Discussion List" <hidden-discuss at lists.hidden-tech.net> > Date: Thursday, December 4, 2008, 10:02 AM > Interesting, as I've been told by two accountants over > the years that you could *not* deduct services rendered to > 501(c)3 organizations. Definitely worth a closer look, as > it would be great if we could! > > According to this IRS document: > "You cannot deduct the value of your time or > services" > > http://www.irs.gov/publications/p526/ar02.html#d0e1381 > > > > On Dec 3, 2008, at Dec 3, 2008 5:44 PM, Tish Grier wrote: > > > ** Be sure to fill out the survey/skills inventory > in the member's area. > > ** If you did, we all thank you. > > > > > > If you're dealing with a 501(c)3 organization (or > other non-profit org), they can give you a receipt for the > cost of your services because you essentially > "donated" to them. > > > > It's something like a services-in-kind > arrangement. > > > > But, essentially, it *can* be a tax deduction for > anyone who's making the contribution of services. > > > > Tish G. > > (who used to do non-profit accounting in a former > career.) > > > > > > --- On Wed, 12/3/08, Chris Hoogendyk > <hoogendyk at bio.umass.edu> wrote: > > > >> From: Chris Hoogendyk > <hoogendyk at bio.umass.edu> > >> Subject: Re: [Hidden-tech] Re: pro bono work > >> To: "Hidden Tech Discussion List" > <hidden-discuss at lists.hidden-tech.net> > >> Date: Wednesday, December 3, 2008, 1:04 PM > >> ** Be sure to fill out the survey/skills inventory > in the > >> member's area. > >> ** If you did, we all thank you. > >> > >> > >> > >> > >> Linda Taylor wrote: > >>> You are right, Maria. When I worked in an > office I did > >> a lot of pro bono work. When I lost my job and > began to > >> freelance it was the work I had done for community > >> organizations that brought new work to my doorstep > before I > >> even advertised. I have to be careful what I take > on now > >> because the paying customers come first, but it is > a way to > >> branch out and can be great publicity. You just > have to make > >> sure that there is a way that the public knows > that it was > >> your work. And it is probably wise to make it > clear to the > >> organization just how much work you are putting > into it and > >> how much they are saving. A lot of our work is > undervalued > >> as it is and we don't want to perpetuate that > myth. > >> > >> hmm. Someone might want to comment on tax issues. > If you > >> made out an invoice and had them sign off on it as > a > >> contribution, it would serve the dual purposes of > making > >> them aware of the cost to you and the cost savings > to them > >> as well as giving you a document for tax purposes > as an > >> itemized contribution. Would this then apply only > if it were > >> a charitable organization? I have no clue. I'm > just > >> putting this out there for someone who does have a > clue to > >> comment on. > >> > >> > >> -- --------------- > >> > >> Chris Hoogendyk > >> > >> - > >> O__ ---- Systems Administrator > >> c/ /'_ --- Biology & Geology Departments > >> (*) \(*) -- 140 Morrill Science Center > >> ~~~~~~~~~~ - University of Massachusetts, Amherst > >> <hoogendyk at bio.umass.edu> > >> > >> --------------- > >> Erdös 4 > >> > >> > >> _______________________________________________ > >> Hidden-discuss mailing list - home page: > >> http://www.hidden-tech.net > >> Hidden-discuss at lists.hidden-tech.net > >> > >> You are receiving this because you are on the > Hidden-Tech > >> Discussion list. > >> If you would like to change your list preferences, > Go to > >> the Members page on the Hidden Tech Web site. > >> http://www.hidden-tech.net/members > > > > > > > > _______________________________________________ > > Hidden-discuss mailing list - home page: > http://www.hidden-tech.net > > Hidden-discuss at lists.hidden-tech.net > > > > You are receiving this because you are on the > Hidden-Tech Discussion list. > > If you would like to change your list preferences, Go > to the Members > > page on the Hidden Tech Web site. > > http://www.hidden-tech.net/members _______________________________________________ Hidden-discuss mailing list - home page: http://www.hidden-tech.net Hidden-discuss at lists.hidden-tech.net You are receiving this because you are on the Hidden-Tech Discussion list. 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