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0 pointskorzun11y ago0 comments

I'm aware of processing fees, to avoid it you can simply cut a check or do a bank transfer from your personal account when donating.

But I'm also pretty sure a non-profit can write off processing fees so it's not really an issue.

How would the employee get tax write off if the money is send to your company which is not registered as 501(c)?

For example if you claim a deduction on your taxes and get audited, would IRS be cool with 'I send money to XYZ which is not a 501(c) but they send it to actual charity, I swear'.

Offering receipt of donation to every company employee would work (I think), but I'm not sure if you are doing that?

0 comments

dcaranda11y ago

Every employee gets a receipt of how much they donated to which charities. Their donation also shows up in their year end paystub and W-2, both of which can be used in their tax returns.

On fees, it's typically just the network fee (e.g., Mastercard) that gets waived. The issuing bank, acquiring bank and the processor, still take a cut.

Bank transfers have too much friction. You wouldn't pay your corner store with a bank transfer. You'd rather swipe a card. It's why you carry around your bank card (which as a VISA or MC logo). You wouldn't pay for something on eBay with a bank transfer. You'd use PayPal. An interesting point is that both PayPal, VISA and Mastercard on the bank-end are really just a series of bank transfers wrapped with a more refined consumer/merchant interface (card / POS terminal).

korzunOP11y ago

Gotcha, that's for clarifying it. With receipts this makes way more sense :)

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