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-   -   Can services rendered from a service company to a 501 (c) tax deductible? (https://www.askmehelpdesk.com/showthread.php?t=739509)

  • Mar 16, 2013, 08:15 PM
    myman222
    Can services rendered from a service company to a 501 (c) tax deductible?
    If we have a dog walking company walk our 501 (c) animal rescue dogs once or twice a week, can we give them a tax deductible receipt for the services they performed for us.
  • Mar 16, 2013, 08:22 PM
    scott53715
    Sure. But they can not get anything of value from the business. If you give the dog walkers donuts, the value of the donuts would be subtracted from the total value of the dog walking service. You need to give them a receipt. Hope this was helpful.
  • Mar 17, 2013, 07:14 AM
    AK lawyer
    Quote:

    Originally Posted by scott53715 View Post
    Sure. But they can not get anything of value from the business. If you give the dog walkers donuts, the value of the donuts would be subtracted from the total value of the dog walking service. ....

    Huh? OP is the (for profit) dog-walking business. So if OP gives doughnuts to employees of OP, I fail to understand what, if anything, that would have to do with what OP can deduct for donating services to the charity. You deduct the vaue of the service. What you pay your employees to perform that service, whether it be in the form of cash or doughnuts, is immaterial.

    If what Scott is talking about is doughnuts given by the charity to the dog-walker employees, that would be between the employees and the charity. The for-profit company would not "know" about that at tax time.
  • Mar 17, 2013, 07:35 AM
    excon
    ... What you CAN'T do, is give them a receipt for their "donation" IF that wasn't the deal in the first place.
  • Mar 17, 2013, 07:53 AM
    AK lawyer
    In other words, if the charity is given a bill for the service, it cannot "pay" with a receipt. Clearly.

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