Can a sole proprietor or an LLC request cash donations for a service?

Asked about 1 year ago - Ypsilanti, MI

If I am a motivational coach can I hold a seminar and just ask for monetary donations?

Attorney answers (3)

  1. Thomas R. Morris

    Contributor Level 12

    7

    Lawyers agree

    Answered . You can have your audience pay what they choose, but I would not call it a donation since that implies that it's a deductible charitable donation.

    This answer is for discussion purposes only and will not be considered legal advice. Further, a court could... more
  2. John F. Brennan

    Contributor Level 19

    6

    Lawyers agree

    Answered . In principal, all businesses ask for cash donations for their goods or services, as can you. Do not be confused, however, the contributions, made before or after the service is rendered, is revenue to you, and must be accounted for and taxes paid on.
    I would strongly suggest legal and accounting counsel given the nature of your question.

    To the PROSPECTIVE client, please call myself or another attorney for your choice with more detaiils and an... more
  3. David B. Forest

    Contributor Level 10

    5

    Lawyers agree

    Answered . I agree with the other anwers. Of course you can receive your compensation in whatever form you choose, but it is still revenue to you and/or the LLC. I believe the question you are asking is really a tax question, and you should consult witha tax advisor.

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