Change the Tax Code to Allow Deductions for Pro Bono Services
Red Rooster Group is establishing a campaign called Deduct It! to change the IRS tax code to allow small businesses to claim a deduction for services they donate to registered 501(c)3 nonprofit organizations. We have created a blog to gain support for this issue: http://deductit.wordpress.com
Goods that are donated are allowed to be deducted, but not services. Allowing this deduction will:
- Correct the fundamental discrimination against service businesses.
- Create massive value for the nonprofit sector at a time when it needs it badly.
- Encourage a culture of businesses contributing to the service sector.
This is the start of a nationwide movement to form a coalition to change this code. We appeal to all small business owners and associations:
- Creative service firms (Design, advertising, public relations)
- Consulting Firms (business, operations, marketing, strategic planning, fundraising, etc.)
- Architecture & Design Firms
- Law Firms
- Accounting and Financial Firms
We are in the process of galvanizing national grassroots support from both business and the nonprofit sector, drafting the legislation, and soliciting political support and sponsorship.
This blog will explore the considerations relating to this issues including:
- What types of businesses or services the deduction will apply to (for example, for small businesses up to $500,000 in revenue, and incorporated business, as opposed to individuals volunteering their time as a volunteer)
- The amount of deductions allowed and whether a cap is needed (most likely based on a percentage of gross sales).
- The value of the service being claimed (perhaps based on a previous service offered).
Join us in our push for this legislative change. We welcome your comments and feedback. More info at: http://deductit.wordpress.com
Howard Levy
