Question

I started a non-profit and funded it all myself. Do I claim funds as donations or expenses?

Forum|Forum|6 years ago
January 3, 2020
1 reply
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As of November of 2019, I started a non-profit organization through the state but did not get 501c3 status yet. I funded the non-profit with my own personal funds and the funds were distributed as donations to needy families that the non-profit helped. Do I claim the money I donated as donations or as startup costs? I did incur certain startup costs for the non-profit which I am claiming as such but 100% of the money that I gave to the non-profit was used to help the designated families and proper bookkeeping was kept for all distributions. Is there a specific area in TurboTax Self-employed for this? Thank you in advance.

A

Anonymous

without knowing the 501c3 status all that can be provided is what to do if you do get. Assuming all the IRS criteria are me, it most likely will be classified as a private foundation. based on such, you would deduct on schedule A of your 1040 the contributions you made to your non profit. cash contributions to private foundations are limited to 30% of adjusted gross income. the IRS will send you what is referred to as a determination letter. read it fully and carefully. there will be a requirement to submit an annual return. the letter will tell you what forms to submit. - for small charities its usually nothing more than a postcard. you may also have to file with your state.