[Hidden-tech] Re: pro bono work

Bronwen Hodgkinson - cdeVision bronwen at cdevision.com
Thu Dec 4 11:45:31 EST 2008


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?

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Bronwen Hodgkinson
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-----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
> >> 
> >> 
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