Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.

I have been freelancing as a web designer/developer for about 5 years. Along the way I had a friend who started a 501 non profit and I offered to design and host their website for free. I never got a tax write off or any thing else in return from the 501.

I have just now dissolved my sole proprietorship and started a new LLC. I want to renegotiate the terms of continued support for the 501 under my new LLC. Since I started working with the no profit all the older management has left and the 501 has been neglectful of the free services I have provided them for the last 3 years. Never once using the site thought there has been talks of its potential and requests that I continued to provide free support and hosting for it.

At this point there is talks of providing some new content and features to the site to give it more life, but I don't really want to throw my time and resource away for free any more. Aside from billing the 501 I know I can get a tax write off for my time and services. But I don't really know what that is or what I should be asking the 501 in return for my services.

What are some of the returns that a LLC would typicality get for providing free services to a 501 non profit?

share|improve this question
This isn't an answer, so I'll comment: Honestly, my motto is "you get what you pay for." I will never, ever, provide free services to Nonprofits simply because they're free (never mind the fact that 100% of my target market is nonprofits). People need to be willing to pay for valuable things. If they aren't willing to pay (even a discounted rate), then obviously it isn't valuable to them. I would discount a price for a nonprofit, but wouldn't give it to them for free. – David W Mar 17 '12 at 23:04
This isn't an answer either, just my personal variation on the previous comment. I only donate to non-profits I truly believe in. Then my satisfaction in helping a good cause is the only reward I need. – Dave Feyereisen Mar 18 '12 at 4:36
Thanks for the comments. In terms of the context of your comments I'm torn by the fact that I admire the goals of the non profit and I feel they do good work, but in terms of them asking me to build a site that they never used in almost 3 year it makes my company look bad. – Digital Cake Mar 18 '12 at 14:35
All the more reason to make them pay for it. You can always donate that payment back to them – Karlson Mar 30 '12 at 23:21
IANA but think about this if you provide them services without chaging you are basically down because the expense of creating the site is on you. Now if you did receive money for your work you will right off the expenses and then by turning around and donating the same amount you charged you could potentially receive a deduction there but I'd talk to an accountant to make sure. – Karlson Mar 30 '12 at 23:28

Know someone who can answer? Share a link to this question via email, Google+, Twitter, or Facebook.

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Browse other questions tagged or ask your own question.