Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
When I asked for some substantiation of the 60%, I got this: "The 60/40 ratio was discussed with our tax accountants who informed us that the when a customer spends over $75 AND they receive something for part of the donation (in our case, they receive classes) they can receive a tax deduction for the portion that covers the cost of the cost of the class. So 60% is class/camp cost and the 40% accounts for profits and general management and expenses that are not class specific."

I suspect something got lost in translation - ...


I would hope so, as their explanation makes no sense. The cost of the camp is not deductible as a contribution under any circumstances. It could possibly qualify as a childcare expense. The 40% overhead amount appears to qualify as a charitable contribution.

Ira
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.