How would this work? - TanToday - Helping Salon Owners, One At A Time, Since 2000!

Sheri · 21st August 2008, 10:58 PM

Had a dist. call me the other day and tell me about a special one of their clients are doing. The salon is giving away a $30 gas card with the purchase of some certain package. Claims the salon owner donates to the church $30 for a write off and then the church in return gives her these cards.

Do u think somehow the church is getting some gas station to donate to them gas cards and then members are giving them cash for them??

My church cant do this - yours?

LaurenLanai · 22nd August 2008, 01:06 AM

sounds shady to me!!

Kathe · 22nd August 2008, 09:51 AM

Sounds illegal to me and I wouldn't do it.

John · 22nd August 2008, 10:33 AM

Many Churches & Schools sell gift cards as fund raisers. They usually get to keep about 5-10% of the face value. So if this person is buying gift cards from a church & then writing the payment off as a donation is a bit crooked. Chances of getting caught are probably slim. However if you do get caught it will suck, IRS is not to be fooled with.

northtanman · 22nd August 2008, 10:51 AM

i like donations where you get something in return

on topic: bet if we gave gas cards with purchase, it would SELL whatever it is we are selling!!

i give my employee's gas gift cards as part of their bonus and they work hard to get them!

RDKJ · 22nd August 2008, 10:55 AM

John is correct regarding the church/school fundraising. However, technically the cost of a gas card is an expense, not a donation. Not sure it really matters - you are not sheltering income either way you show it on the books.

Sheri · 22nd August 2008, 11:36 AM

HMMMM..... I know I wouldn't do this

.....

but if the gas card is an expense- and say I give them away with a purchase of a package- whose to stop the salon owner from using them PLUS writing off their miles????

Sheri · 22nd August 2008, 11:43 AM

I guess she is writing off her $30 to the church as a donation. Maybe not showing she is getting anything in return????

Sounds like something we all need to look into. Could be easier to sell certain packages with us giving them something - such as GAS in return.

northtanman · 22nd August 2008, 11:58 AM

even a $10 gas card for certain lotion purchases or packages? i think it would work!!

BIG AL · 22nd August 2008, 11:59 AM

I am not sure what the problem with this is. If I go to the gas station and buy $30 gas cards and give them to my customers, I get a $30 deduction because it was an expense.

If I go to a church and give them $30 and they give me a $30 gas card and I give them to my customers, I get a $30 deduction, all though this would be a charity deduction. It still cost me $30 and I still gave them away to my customers and I can take a deduction either way. The church may get a small portion of the money and everyone is happy.

I don't see it as any different than going to a charity auction and say buying baseball tickets, taking the deduction and then giving them to customers or employees. As long as they are paying $30 and getting a $30 deduction, what is the problem?

Sheri · 22nd August 2008, 12:16 PM

Doesn't seem to be a problem Big Al. Just some may not think to do this or that they CAN do this. This is a forum for sharing ideas! Just trying to help out salon owners with some GOOD ideas for their slow times!!!

Do u do this Al? Maybe you can share your experiences with us.

Sheri · 22nd August 2008, 12:19 PM

I give to my church every week/mo. If there is a way they can write off as an expense - then I donate to them as a charity donation - and they get the money - I dunno!? this is why I started this post.

Sounds like a WIN/WIN for everyone.

BIG AL · 22nd August 2008, 12:36 PM

I have done the baseball tickets part. I gave them to my employees as a sales incentive. The employee that had the highest sales per hour they worked got the tickets.

Shari, it was just that everyone was saying I wouldn't do that or that it was shady. If I donate $30 and get something worth $30 in return and give it away, what is the difference in giving away a bottle of lotion that costs me $30? It still cost me $30 and I can take the $30 as a cost of business expense. Now if I take a $30 deduction but it only costs me $10, there would be a problem.

Shari, you don't think that these big companies are giving away millions out of kindness do you. If they didn't get a deduction, I would be willing to bet that there wouldn't be as much money going to charities.

21st August 2008, 10:58 PM	#1 (permalink)
Sheri Moderator Join Date: Oct 2004 Location: Tn Posts: 614	How would this work? Had a dist. call me the other day and tell me about a special one of their clients are doing. The salon is giving away a $30 gas card with the purchase of some certain package. Claims the salon owner donates to the church $30 for a write off and then the church in return gives her these cards. Do u think somehow the church is getting some gas station to donate to them gas cards and then members are giving them cash for them?? My church cant do this - yours?

22nd August 2008, 01:06 AM	#2 (permalink)
LaurenLanai Rookie Join Date: Aug 2008 Posts: 38	Re: How would this work? sounds shady to me!!

22nd August 2008, 09:51 AM	#3 (permalink)
Kathe Moderator/Arbonne VP Join Date: Dec 2005 Location: Michigan Posts: 3,681	Re: How would this work? Sounds illegal to me and I wouldn't do it. __________________ Kathe's Health Blog Kathe's Christian Blog Please talk to me if you would like to bring a great line of skin care into your salon. CLICK HERE to learn more. YES! What you use on your skin DOES matter! Arbonne - Pure, Safe & Beneficial! NutriMinC RE9 Body Set used for 2 weeks on one foot!

22nd August 2008, 10:33 AM	#4 (permalink)
John Hall of Famer Join Date: Nov 2004 Location: Cleveland Posts: 1,610	Re: How would this work? Many Churches & Schools sell gift cards as fund raisers. They usually get to keep about 5-10% of the face value. So if this person is buying gift cards from a church & then writing the payment off as a donation is a bit crooked. Chances of getting caught are probably slim. However if you do get caught it will suck, IRS is not to be fooled with. __________________

22nd August 2008, 10:51 AM	#5 (permalink)
northtanman Hall of Famer Join Date: Sep 2006 Location: michigan Posts: 1,366	Re: How would this work? i like donations where you get something in return on topic: bet if we gave gas cards with purchase, it would SELL whatever it is we are selling!! i give my employee's gas gift cards as part of their bonus and they work hard to get them!

22nd August 2008, 10:55 AM	#6 (permalink)
RDKJ All Star Join Date: Nov 2004 Posts: 189	Re: How would this work? John is correct regarding the church/school fundraising. However, technically the cost of a gas card is an expense, not a donation. Not sure it really matters - you are not sheltering income either way you show it on the books.

22nd August 2008, 11:36 AM	#7 (permalink)
Sheri Moderator Join Date: Oct 2004 Location: Tn Posts: 614	Re: How would this work? HMMMM..... I know I wouldn't do this ..... but if the gas card is an expense- and say I give them away with a purchase of a package- whose to stop the salon owner from using them PLUS writing off their miles????

22nd August 2008, 11:43 AM	#8 (permalink)
Sheri Moderator Join Date: Oct 2004 Location: Tn Posts: 614	Re: How would this work? I guess she is writing off her $30 to the church as a donation. Maybe not showing she is getting anything in return???? Sounds like something we all need to look into. Could be easier to sell certain packages with us giving them something - such as GAS in return.

22nd August 2008, 11:58 AM	#9 (permalink)
northtanman Hall of Famer Join Date: Sep 2006 Location: michigan Posts: 1,366	Re: How would this work? even a $10 gas card for certain lotion purchases or packages? i think it would work!!

22nd August 2008, 11:59 AM	#10 (permalink)
BIG AL Super Star Join Date: Nov 2004 Posts: 868	Re: How would this work? I am not sure what the problem with this is. If I go to the gas station and buy $30 gas cards and give them to my customers, I get a $30 deduction because it was an expense. If I go to a church and give them $30 and they give me a $30 gas card and I give them to my customers, I get a $30 deduction, all though this would be a charity deduction. It still cost me $30 and I still gave them away to my customers and I can take a deduction either way. The church may get a small portion of the money and everyone is happy. I don't see it as any different than going to a charity auction and say buying baseball tickets, taking the deduction and then giving them to customers or employees. As long as they are paying $30 and getting a $30 deduction, what is the problem?

22nd August 2008, 12:16 PM	#11 (permalink)
Sheri Moderator Join Date: Oct 2004 Location: Tn Posts: 614	Re: How would this work? Doesn't seem to be a problem Big Al. Just some may not think to do this or that they CAN do this. This is a forum for sharing ideas! Just trying to help out salon owners with some GOOD ideas for their slow times!!! Do u do this Al? Maybe you can share your experiences with us.

22nd August 2008, 12:19 PM	#12 (permalink)
Sheri Moderator Join Date: Oct 2004 Location: Tn Posts: 614	Re: How would this work? I give to my church every week/mo. If there is a way they can write off as an expense - then I donate to them as a charity donation - and they get the money - I dunno!? this is why I started this post. Sounds like a WIN/WIN for everyone.

22nd August 2008, 12:36 PM	#13 (permalink)
BIG AL Super Star Join Date: Nov 2004 Posts: 868	Re: How would this work? I have done the baseball tickets part. I gave them to my employees as a sales incentive. The employee that had the highest sales per hour they worked got the tickets. Shari, it was just that everyone was saying I wouldn't do that or that it was shady. If I donate $30 and get something worth $30 in return and give it away, what is the difference in giving away a bottle of lotion that costs me $30? It still cost me $30 and I can take the $30 as a cost of business expense. Now if I take a $30 deduction but it only costs me $10, there would be a problem. Shari, you don't think that these big companies are giving away millions out of kindness do you. If they didn't get a deduction, I would be willing to bet that there wouldn't be as much money going to charities.

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