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[Luke Geis]

Hey Craig!!!! How ya doin?

[Craig Hauber]

Hey Craig!!!! How ya doin?

For some reason I thought it would be helpful to provide some advice in this thread on a subject I've failed miserably at over the years (running a business)

Actually considering firing-up a sound-co again up here in the few non-snow months we get every summer but wondering if it's even possible with gear as old as mine!

(Been meaning to look you up every time I'm in LA, but rarely ever get past the Conejo grade anymore, let alone all the way to SB!)

[Luke Geis]

Please do. I have been traveling a ton lately. Only been home about 4-5 weeks since the first of the year! Been a really busy boy.

I should qualify that point #4 wasn't meant to read gouge the Gov't for every dollar you can, but more, that you should charge full pop, diligently and fairly. If you don't, you will wish you had. The payment structure is weird and there always seems to be another finance or accounts payable department you have to go through. Billing and payments is typically net 30, so you work today and wait a month after you send the bill to get monies. It is just not as fun is all.

As for churches and other supposed non profit type organizations, trying to account for every penny is not wrong, but just sorta grimey I guess. While charging the same price to all clients is probably the ideal method, at least with giving a break to churches and non profits you can write off the donation and or " Loss " on you r taxes to sort of re-acquire that money. I won't say I have a bleeding heart, but I hate to take from organizations that really only give.

Craig. If you sell what you got, you could probably re-acquire enough of a small rig to get the ball rolling. No one cares what subs you have it seems. An X-32 is widely excepted by even top tier clients and the market is on the upward swing. I am killing it this year and its only looking better!!!!

[John Fruits]

A reminder about churches and charities from previous similar threads, charge them the same rate you charge everyone else, THEN make a donation back to them if you so choose.  That way you have a paper trail to keep the accountant happy and your other customers don't have anything to complain about. 

[Ray Aberle]

Disclaimer:  I AM NOT AN ACCOUNTANT NOR A TAX LAWYER.

Typically, according to what I am familiar with regarding IRS rules and regulations, you cannot write-off (edit: I said "donate" previously instead of "write-off") the "value of service" (i.e. your labor charge(s)) as a donation. You MAY be able to write-off (edit again: I said "donate" previously here instead of "write-off") the "value of gear rental;" I have heard mixed messages on that point.

The safest, fool-proof method, is to charge your full prices and, as John mention, write a donation check back to the organization. This way, you have a paper trail, "in writing with known value" donation being made. [The problem with "value of services" or "value of gear rental" donations is that the IRS could try to dispute the stated value of those donated services or gear rentals. With a check written, it's very clear as to what the donation was valued at. Bonus points is that the organization sees the TRUE cost of the services/gear provided.]

-Ray

[Tim McCulloch]

Disclaimer:  I AM NOT AN ACCOUNTANT NOR A TAX LAWYER.

Typically, according to what I am familiar with regarding IRS rules and regulations, you cannot donate the "value of service" (i.e. your labor charge(s)) as a donation. You MAY be able to donate the "value of gear rental" as I have heard mixed messages on that point.

The safest, fool-proof method, is to charge your full prices and, as John mention, write a donation check back to the organization. This way, you have a paper trail, "in writing with known value" donation being made. [The problem with "value of services" or "value of gear rental" donations is that the IRS could try to dispute the stated value of those donated services or gear rentals. With a check written, it's very clear as to what the donation was valued at. Bonus points is that the organization sees the TRUE cost of the services/gear provided.]

-Ray

I think you have it backwards, Ray.  One *might* be able to deduct the value of goods provided as one has a price list (in theory) that reflects the value.  Labor?  Probably not or half the volunteers in the USA would try to deduct the value of their efforts.

HOWEVER - our accountant is a former IRS auditor who told us in no uncertain terms if we want to survive an audit over charitable deductions those deductions better have a receipt and cancelled cheque and that in-kind donations would almost certainly be disallowed.

My point is that HoW clients don't get a discount or donation.  Why should they?  What makes them an exception to anyone not a member of that church?  We do discount certain *events* held by churches that are community outreach rather than proselytizing, but those are few.

Ditto for charities... the boss favors things that make life better for children and youth but they pay typical rates for their events and the boss makes donations according to his desires (see first paragraph).

For those with soft spots for specific NFPs... ask yourself why you're being asked to do a gig for free or substantially discounted when the staff of the organization isn't volunteering.  Not being a dick, but if this "cause" is sufficiently important and life-altering why isn't *everyone* donating their time, efforts and good will?  The answer is "staff has to provide for their families, too."  That works both ways... why should YOU give away a gig when your family needs food on the table, mortgage payments made, and baby needs new shoes, too?

Komen?  ACS?  They can pay full rate, as much as I hate cancer.

[Ray Aberle]

Re-read my post. I think you might have reversed my comments via-a-vis "value of services" and "value of gear rental."

Regarding "In-Kind donations," based on the above points-of-view, any time I've given an "in-kind discount" for whatever reason.... it doesn't go on the books. In other words, I just charge less for that show. I DO track discounts for whatever reasons (cash discounts for community sponsorships, or new client discounts, or whatever) but for the most part, I'm just "charging less" for the show, instead of "making a donation."

-Ray

[Nathan Riddle]

I'm working on some numbers for that big potential client.

Is it customary to add a discount for multiple gigs throughout a summer/fall season?

Large event (~$5k) with 10 summer gigs and 5 fall gigs.

[Caleb Dueck]

I'm working on some numbers for that big potential client.

Is it customary to add a discount for multiple gigs throughout a summer/fall season?

Large event (~$5k) with 10 summer gigs and 5 fall gigs.

Are they contracting and submitting down payment on them as a single transaction?  Or are you thinking of giving a discount on one in hopes of getting them all?  Big difference.

Do your costs go down if hired for the lot, IE it allows you to buy rather than sub-rent items?

Sent from my VS980 4G using Tapatalk

[Nathan Riddle]

Are they contracting and submitting down payment on them as a single transaction?  Or are you thinking of giving a discount on one in hopes of getting them all?  Big difference.

Do your costs go down if hired for the lot, IE it allows you to buy rather than sub-rent items?

All or nothing. It doesn't make sense for them to have multiple providers, either I do it all summer or not.

Yes.

[ProSoundWeb Community]