11–14 of 14 posts
Earlier quoted context omitted.
Yeah – it's an easier way to do donations, but the tax implications and fees are the same as always. It even comes out of your paycheck pre-tax... making your tax end simpler as well.
On their page it states that it comes out as post tax deduction. They are not a non-profit institution.
Why would I funnel donation money via a third party who will then get a tax write off? Seriously?
@korzun My name is Danny and I'm a co-founder of RaisedBy.Us. Thanks for your question! Regarding the 3rd party issue: All donation methods (RaisedBy.Us or otherwise) involve a third party. Even when you go directly to a charity's website to make a donation, you will use a third party payment provider. The most common method is debit or credit card. This method actually involves multiple third parties that all take f…
But I'm also pretty sure a non-profit can write off processing fees so it's not really an issue.
How would the employee get tax write off if the money is send to your company which is not registered as 501(c)?
For example if you claim a deduction on your taxes and get audited, would IRS be cool with 'I send money to XYZ which is not a 501(c) but they send it to actual charity, I swear'.
Offering receipt of donation to every company employee would work (I think), but I'm not sure if you are doing that?
Earlier quoted context omitted.
@korzun My name is Danny and I'm a co-founder of RaisedBy.Us. Thanks for your question! Regarding the 3rd party issue: All donation methods (RaisedBy.Us or otherwise) involve a third party. Even when you go directly to a charity's website to make a donation, you will use a third party payment provider. The most common method is debit or credit card. This method actually involves multiple third parties that all take f…
I'm aware of processing fees, to avoid it you can simply cut a check or do a bank transfer from your personal account when donating. But I'm also pretty sure a non-profit can write off processing fees so it's not really an issue. How would the employee get tax write off if the money is send to your company which is not registered as 501(c)? For example if you claim a deduction on your taxes and get audited, would IRS…
On fees, it's typically just the network fee (e.g., Mastercard) that gets waived. The issuing bank, acquiring bank and the processor, still take a cut.
Bank transfers have too much friction. You wouldn't pay your corner store with a bank transfer. You'd rather swipe a card. It's why you carry around your bank card (which as a VISA or MC logo). You wouldn't pay for something on eBay with a bank transfer. You'd use PayPal. An interesting point is that both PayPal, VISA and Mastercard on the bank-end are really just a series of bank transfers wrapped with a more refined consumer/merchant interface (card / POS terminal).
Earlier quoted context omitted.
I'm aware of processing fees, to avoid it you can simply cut a check or do a bank transfer from your personal account when donating. But I'm also pretty sure a non-profit can write off processing fees so it's not really an issue. How would the employee get tax write off if the money is send to your company which is not registered as 501(c)? For example if you claim a deduction on your taxes and get audited, would IRS…
Every employee gets a receipt of how much they donated to which charities. Their donation also shows up in their year end paystub and W-2, both of which can be used in their tax returns. On fees, it's typically just the network fee (e.g., Mastercard) that gets waived. The issuing bank, acquiring bank and the processor, still take a cut. Bank transfers have too much friction. You wouldn't pay your corner store with a…