Gifts from individuals are made using post tax money and are not tax deductible.
Gifts from business are not tax deductible, unlike yearly contributor fees or monthly venture fees.
Because business gifts are paid with pre-tax funds, the business will need to keep 28% aside for the future tax bill.
For the initial release of the Variable Contribution process, the gift amount entered by businesses is treated as the post-tax amount after 28% has been set aside for tax.
For example, if a business enters $100 into the Variable Contribution Form it will keep an additional $38.89 (28%) set aside for tax.
Businesses gifting funds to Enspiral Foundation are responsible for setting aside and managing tax on donations. Businesses can calculate the tax to keep aside using this formula:
($x / (1-.28))-$x
$100 gift example:
- ($100/.72)-$100 = $38.89.
- Foundation receives $100.
- Business keeps $38.89 aside for tax.
$350 gift example:
- ($350/.72)-$350 = $136.11 tax.
- Foundation receives $350.
- Business keeps $136.11 aside for tax.