How does it work?

So, how does it all work? How does the business give 100% of the profits away? Why are donations tax-refundable but the cards aren't? 
Here, I'll walk you through the in's and out's of Arts With Love and explain how this nonprofit works. 

Right from the beginning, the mission and goal with AWL were to give away as much of the profits as possible to these charities. After much trial and error, this hope has become a reality.

THE PROCESS:
The current process looks like this: all the cards are sold at a given price (which includes time, materials, and printing cost). The income gained is then placed in a company-specific account. Annually, the money from sales is evenly divided among the charities and donated. 

AWL gives 100% of our profits away. However, that doesn't necessarily mean all the income we gain through card sales. The term "Profit" encompasses the excess after supply costs, maintenance, and commissions are taken from the initial income. At the end of the year, these profits are distributed to our charities. In our first year in business, we were able to give $500 dollars away!

TAX EXEMPT?
AWL is a registered 501(c)(3) nonprofit organization which means the organization is exempt from federal income tax and your donations to the AWL are considered tax exempt. However, the purchase of our cards is not exempt. Quick clarification: since an individual is receiving a service when buying a card (they gain something from their initial transaction), those costs are not tax exempt. However, when donating directly to this business, an individual would be eligible for a tax exemption since nothing is gained from the transaction, except goodwill. 

DONATIONS:
Donations given directly to Arts With Love go towards supply costs and maintenance of the business. These donations do not go towards our charities, but instead, keep AWL going so we can give a higher percentage of sales directly to these amazing charities.
In order to maintain our initiative to donate 100% of our profits, donations help empower and maintain the hidden costs that go into keeping AWL going. All donations given directly to Arts With Love are tax-exempt. 

Any questions you have not answered? Leave a comment and I'll get back to you!

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