What about taxes and other considerations from the the business side? I have seen horse sponsorships at rescues, and maybe like university clubs, which are nonprofits. Are for profit businesses allowed to just solicit donations? How does that work for business taxes? I guess I am wondering if the tax burden would be such that another method of support might be better. I think some folks still barter horse use in exhange for their own lessons, or similar.
I am going to approach this from two sides…the business owner giving the money and the for profit business receiving the money:
Generally…if you are a business giving money, it is more tax advantageous to give as advertising or sponsorship. So the biz gets a banner in the arena, a link on the webpage, an announcer shout-out at a horse show. These are going to be a 1:1 reduction against your revenue. If you give as a true “charitable contribution”, you (g) only get 60% of the donation AND you have to itemize your deductions (see my first response). Generally (I know I keep using that…but all tax situations are different) all charitable contributions flow through to Schedule A.
As a business receiving funds: if you are not a 501©(3)…it is considered revenue in the eyes of the IRS. And will be taxed as: revenue - business expenses = taxable net income.
Again these are the general “yous” and royal “we’s”. Specific tax situations will vary.
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for a Business the contribution could easily be classified as a ligament business expense under advertising, not as a contribution
When I had one of businesses running that catered to livestock ranches/farms we often provided product that was funded from our advertising budget
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I’m pretty sure he’s involved with the Make the World Better foundation that Connor Barwin started, at least informally, so that might be be a way to contact him that’s also related.
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Patrick M has built playgrounds here which is what drew my attention before his playing. I might try that but I wonder if contacting them might make them feel some for you, less for me?
