Can a business take donations?

[FM1000]

We're launching a unique enterprise that will have great public support. It's a profit making business.

One way of funding the start up is by accepting small donations from the public. But can we do that? or do we have to be a charitable cause to accept donations?

 

[FM1000]

Could we sell something to them where they could pay a variable amount?

 

[Indigo Cherry]

Could we sell something to them where they could pay a variable amount?

I really don't know about donations, but I don't see a problem with the variable amount situation!

There are a number of top chef's now that own restaurants where they let the customer pay what they think the meal is worth (how much they enjoyed it etc...).

So I don't see why you can't charge your customer what they think your product or service is worth to them.

But.......I could be wrong!

 

[Chap123]

I would imagine you are looking at taking donations that become tax efficient for you and those who are donating?

As far as I know any business can accept donations, but only donations to non-profits can be considered tax-deductible.

So you would be able to accept donations but you would have to deduct tax from these, and those people donating to you would not be able to gift aid it.

I could be wrong though.

Hope this helps.

 

[benjamin_c]

for total clarification i advise you talk to an accountant about this :/