I have a dollar bookstore. I want to sponsor a school and ask people for a $1 donation which I will then turn around and give that many books to that sponsored school. Am I legally allowed to ask for dollars. Or do I have to ask them if they would like to donate a book to the school for $1? How can I legally do it with the school. Do they have to fill out any sort of tax forms or anything?Thank you!

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  • Evil in disguise

    April 18, 2016

    I would think that you need a written agreement with the school. They would give you permission to act as their agent, in soliciting money. The agreement would say where and when you can do this, and other conditions. These might include how much you can keep for expenses, how quickly you need to turn over the money or books, how much advertising you can associate with the effort. Also, who gets to pick the books?Since you plan to give books and not the money, then you are effectively keeping the profit you make on selling the books. It’s the same as if you (1) got $1000 in donations, (2) gave the money to the school, and then (3) the school bought $1000 worth of books from you at retail. This profit, like any other profit you make, is taxable income IMHO.

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