Right from the beginning, I wanted to give away as much of the profits as I could to these charities. After quite a bit of trial and error, this hope was becoming reality.
As of now, this is what the process looks like: all the cards are sold at a given price (which includes time, materials, and printing cost) and the income gained is placed in an account. Twice a year the money from sales is evenly divided among the charities and donated.
The only time money leaves the account is to pay for supply costs or to donate to these given charities. That's it.
In regards to how the non-profit status relates to a business, this is how it works: since an individual is receiving a service when buying a card (aka, they get something out of it), those costs are not tax exempt. However, when donating directly to this business, an individual would be able to receive the tax exception since nothing is gained from the transaction, except goodwill.
Donations given directly to Arts With Love go towards supply costs and maintaining the business. These do not go towards our charities.
In order to maintain being able to give 100% of our profits, there had to be a good financial structure to maintain the business side of Arts With Love. Therefore, the donations given to Arts With Love are tax-exempt.
Any questions you have not answered? Leave a comment and I'll get back to you!
Hi, I'm Abigail Dorn, the founder and director of Arts With Love.
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