How do I accept donations as an LLC versus a non-profit?
I'm partnering with yoga studios to garner funding for my programs at youth sites. The funding will be received as a donation i.e. fund a class for youth by paying for a yoga class. I'm not sure how to receive these funds from the studios.
If you are receiving funds as an LLC it would be income. Of course you can offset that by deducting any expenses for the youth classes.
Not sure if you are asking how you receive it because as Ray said it is income, you are not a charity. If an individual makes a contribution they get no deduction because again, you are not a charity. A business who sponsors a class, they get a business expense and goodwill so they dont care if its a charity.
If I understand the question correctly, the yoga studios are collecting the funds and then will hand it over to you in some sort of agreement. Adding on to what Ray and James already said, would it be possible for the studios themselves to buy any of the items that you would otherwise have to buy out of pocket? Or, would it be possible for the studios to pay for the sites (if there is a fee or lease agreement) directly? In this way, your LLC wouldn't have received money. But there may be accounting challenges to this as well, since you would not be able to list those items as business expenses, and any items that the yoga studio purchased would still be owned by them, not you. An interesting tax question, indeed.