If a businesses functions on donations do they have to pay taxes?
Question Details:
If someone donates money for you to keep doing what you do, do you have to pay taxes on the donated money?
Unless your business is a tax exempt charity--and then only to the extent that the donation is properly handled and documented within the rules for a tax exempt charity--then yes, you would have to pay taxes on it. As a general rule, people and businesses have to pay taxes on ALL income--and donations are considered income--except to the extent that they are specifically exempted on some grounds. If your business is not a tax exempt charity, either pay the taxes or inquire with a lawyer about whether and how you might set up some charitable organization to accept and use the money, but be warned that the requirements to do so are quite strict.
