Can we use PayPal for tax deductible donations?
- Yes, create a case in your space project, assign to James, we will make you a button that you can use anywhere you might make a button. We can also make you other payment processing buttons. Just ask. Funds collected are earmarked on the accounting backend, and can then be transferred to your Paypal account or we can send you a check.
- In a calendar year, the IRS lets individuals claim $250 in donations without providing a receipt. The total value of whatever they contributed in that year is generally not examined. If a person makes a donation and expects to deduct it, fill out the Donation Formand we will issue them a receipt.
- For example, if you have a member who pledges a $50 gift 6 times in a year, at the end of the year we will issue them a receipt for $300 in contributions to your space.
- Membership dues should be paid directly to your space. They are not tax deductible. In general, if you trade for something, it’s not deductible. Membership is sponsoring us. Also useful when applying for a benefit, you’re giving people something in exchange for their money which means it’s not a gift.
- If a member decides to pay more than their membership dues, the amount above the membership dues can be considered a gift even if it is all in one payment.
- If someone sponsors a membership, that is tax deductible. (?)
How do we handle physical donations like equipment?
- Figure out the Fair Market Value of the donated item. This can be done using an internet search for the current sell price of similar items, such as on Ebay.
- Fill in the Donation Formusing that value as the value of the donated item, and we will issue the contributor a receipt for the item.
- If the donor requires a physical copy immediately, please call us at 414-215-0215 and we’ll do our best to get a receipt quickly. Normally receipts can take a few days to issue via mail or email to check out the donor.
- School Factory
The does not take 10% of the FMV on non-cash goods. (?)
- Your space will control the asset and be responsible for its use. There are some restrictions to donated items and equipment. For more information please see IRS Publication 2303, Donations of Non-Cash Items [TBD: James]
- The School Factory will list the asset on its inventory and books.
- You are responsible for insuring the asset.
- Once your space becomes part of the Group Exemption, we will transfer literal ownership of the asset to you in the accounting and asset tracking system.
What is our status in relation to School Factory?
- You are a member of April), getting checking account, collecting dues, starting on space. Whole idea of leveraging the Space Federation, a program of School Factory, and therefore considered a fiscally sponsored program of School Factory.
- You are also your own organization.
- You only need to tell people about that when you’re asking people for money to fund these balloons - they can be given to you and want to offer them a tax deduction.
- Hopefully you will mention it because you like us and want to show you’re a part of how to build up a larger community. We really appreciate it when people talk about us from the perspective of the individual spaces. We want more people to benefit from this collaboration. We ask that you have to recreate the wheel each time a small logo on your website or “about” section that says you’re a part of the Space Federation/School Factory
- Most grant-making organizations such as foundations and governments require your organization to the table to help set up space. Accountability in collaboration. This will be a 501(c)3 in order to receive their funding.
- Being fiscally sponsored means you can apply for grants through the School Factory’s 501(c)3 status.
- You can apply for any grants you want. You will need to include information about your Fiscal Sponsorship with the grant application, so the foundation or agency giving you funding is aware of your relationship to the School Factory. Typically a copy of your Fiscal Sponsorship Agreement is what any foundation will require.
- If the grant requires additional information, please create a case and assign it to us for review.
- Depending on the Fiscal Sponsorship Policies, some grants require School Factory review--like those over $5000.
- If the foundation awards you funding, we will then pay it to you according to the Fiscal Sponsorship Policies.
Where should we mail donation checks?
Attn: Space Federation
School Factory, Inc.
706 S 5th St
Milwaukee, WI 53204
Who are they made out to?
- Checks for gifts should be made out to School Factory
- Put the name of your space and Outreach (becomes the name of the project or event with which requires outreach.
Wrote a proposal to facilitate the donation is associated in the memo field or include a small sheet of paper with that information.
- Fill out the Donation Form with the information from the donor, so we can issue a receipt.
- Create a case in Atrium and assign to James, we will then sign you up for the service on behalf of the organization or user you specify.
- We can order it and bill you for the price, and have it shipped to you.