2006-06-21 07:45:15 · 5 answers · asked by Maggie1178 2 in Business & Finance ➔ Other - Business & Finance
No profit organizations do not usually accept donations. It is considered investments from another source. Only non profit organizations accept donations.
2006-06-21 07:52:00 · answer #1 · answered by badgirl41 6 · 0⤊ 1⤋
Yes, but why would it when it could be counted as investor equity, which doesn't increase profit or net worth? This leaves the entity in a far better tax position.
The business could also consider it a long-term debt with no maturity, and later on the donor could "forgive" the debt to the business. But this is likely to be caught if the business is of size, operation, or poor luck to be audited.
2006-06-21 15:03:00 · answer #2 · answered by Veritatum17 6 · 0⤊ 0⤋
yes profit business can accept donation so that it can move forward
2006-06-21 15:02:24 · answer #3 · answered by bidemi4eniola 1 · 0⤊ 0⤋
Any one can give up to $12k per year without any tax consequenses to any entity. It is not a donation and cannot be deducted. You do not have to report it. It is a gift, not a donation.
2006-06-21 14:51:42 · answer #4 · answered by HH@20 2 · 0⤊ 0⤋
Sure, but it would have to report them as income and the "donor" would not be allowed to deduct them as charitible contributions.
2006-06-21 14:49:39 · answer #5 · answered by Dakota 3 · 0⤊ 0⤋