Tell me about Non Profit contracts

[bergenjente]

Guys, I'm on a tight schedule (as I'm sure all of us are) and I need some help quick. A local organization that helps out single moms is asking for pictures I have taken. This is fine, and no problem with me, and I'm planning on just giving them the pics, no charge. I actually went on a retreat with them and helped out as a counselor, and of course had my canon in tow, so took a ton of pictures. I hope this doesn't sound selfish, or to self-serving, but I would still like to be able to write off the pics since I am giving them to the organization anyway. Is there some kind of non-profit contract that needs to be written up or fee that I can post (one that I would have charged had I actually made them pay me).

Okay, so simply put:

What kind of contract should I draw up? What kind of release of photos and all the nitty gritty stuff needs to be included in it?


What kind of fee would be reasonable to charge (if I were actually charging them....this is obviously for tax write off reasons) if I took around 100-150 pics, and how do I include this in the contract? Do I say, "Cost of services is $450, but photographer is donating all pictures and services."?

Any help ANY of you can give me would be SO great. They want these pics ASAP!

[Stocky]

I would check with them. I have seen other non-profits that offer receipts for the value of services donated to them and your organization has likely dealt with this before.

[Skrim17]

They should simply offer you a letter of thanks for your donation (you give them an amount). It can be for specific services at a monetary value or just for a monetary value.

[mgeventphotos]

Unfortunately, you can't use a donation of time as a tax write off. You can only write off the actual material cost of the pictures you are giving them, so if you are giving thema CD of the images, you can only write off the cd.

In a round about way the policy really does make sense. Otherwise photographers would just donate photos and time in hug quantities to cancel out any income they made.

I'm not sure if you can write off travel time and expenses though, so that would be something to look into.

[tracknut]

Hey, someone else from Folsom, and a dog photographer!

Yes, I agree you're not going to be able to take a write-off on the bulk of this. But it is my understanding that your travel expenses (gas, etc, not travel time) can be written off. Though of course check with your accountant.

Dave

[Stocky]

http://www.irs.gov/publications/p526/ar02.html#d0e1381
I thought I was going to do some research and prove mgevents wrong, but instead I confirmed that you can't deduct the value of your services. I admit I am a little surprised.
You can donate your copyright to the images though:
If you donate a patent or other intellectual property to a qualified organization, your deduction is limited to the basis of the property or the fair market value of the property, whichever is less. I think your basis in those images is going to be pretty low though. Sorry.

[sapearl]

Unfortunately I have to agree with this.

For nearly two years I've been volunteering my photographic coverage to our local PBS station. I do it because it's my way of helping out a worthy cause, and it's a lot of fun working with the staff. That was my main motivation.

After the fact it ocurred to me that perhaps I could get a deduction for my labor, since I file with the IRS for my photography. I put this question to my CPA.

The answer was NO. As has already been said, you can only claim for actual materials used. So, be happy for the generosity and talent you provided :D. We all would like more, but the IRS just doesn't agree with our point of view :(. - Stu

Unfortunately, you can't use a donation of time as a tax write off. You can only write off the actual material cost of the pictures you are giving them, so if you are giving thema CD of the images, you can only write off the cd.

In a round about way the policy really does make sense. Otherwise photographers would just donate photos and time in hug quantities to cancel out any income they made.

I'm not sure if you can write off travel time and expenses though, so that would be something to look into.

[tracknut]

The answer was NO. As has already been said, you can only claim for actual materials used. So, be happy for the generosity and talent you provided :D. We all would like more, but the IRS just doesn't agree with our point of view :(. - Stu

Actually, I wouldn't. As a taxpayer, I don't want my taxes going to all of these non-profit organizations. The orgs should be responsible for collecting money from those willing to donate, not creating a mandatory "gift" from folks that don't even know they're giving...

Dave

[sapearl]

Hi Dave - I agree in principle with what you're saying, that these orgs should always do the best they can regarding their fundraising, but I'm not sure I'm following everything you're saying here.

Actually, I wouldn't. As a taxpayer, I don't want my taxes going to all of these non-profit organizations. The orgs should be responsible for collecting money from those willing to donate, not creating a mandatory "gift" from folks that don't even know they're giving...

Dave

[tracknut]

Sorry, maybe that was a bit suble. Let's say OP gets a $450 tax deduction for donating his services to this org, and that nets him $150 back on his taxes. That $150 comes from where... you and me. So in effect, the OP donated $300 to the non-profit, and the taxpayers donated the other $150.

Dave

[sapearl]

Gotcha Dave - thanks; sorta' thought that's what you meant but didn't want to assume :D.

We have a number of non-profits in our area and volunteerism is quite strong. There are a large number of people who are quite generous with their labor and talent, and part of me feels that if they can get a legitimate, legal break for generosity, then so be it. A lot of these groups would cease to exist with the volunteers. ;)

Sorry, maybe that was a bit suble. Let's say OP gets a $450 tax deduction for donating his services to this org, and that nets him $150 back on his taxes. That $150 comes from where... you and me. So in effect, the OP donated $300 to the non-profit, and the taxpayers donated the other $150.

Dave

[tracknut]

We have a number of non-profits in our area and volunteerism is quite strong. There are a large number of people who are quite generous with their labor and talent, and part of me feels that if they can get a legitimate, legal break for generosity, then so be it. A lot of these groups would cease to exist with the volunteers. ;)

You're a democrat, I'm a republican :)

Purely said in jest, but I'm curious, is that true?

Dave

[sapearl]

Yeah, but most California Republicans are more Democratic than a lot of those folks in the rest of the country :lol:.

You're a democrat, I'm a republican :)

Purely said in jest, but I'm curious, is that true?

Dave

[bergenjente]

Thanks guys, that helps a lot, and actually makes it easier. I don't really have to think about contracts and fees and all that. They are awesome people, and I just went ahead and gave them a CD of all the images. So I guess I can deduct about 50 cents. :) I really appreciate all the help!