[mholmansr]

Originally posted by ladygreek
Be careful with these types of companies and make sure there is no conflict with the receiving group's IRS status and the marketing of products.

Definitely! I looked into this as well. They've setup the same system with various Groups. The first thing that is addressed with Non-Profits is the Tax Status Issue and Distributions being donations.

Its definitely something to look at in the beginning.

The info provided on the Tax Status (dependent on if one individual chapter person is used as the point of contact or signup is done under the Non Profit Group as a whole) is as follows:

"The group can elect a specific individual (which may change from year to year, as with school parent booster clubs) who receives the commission checks, and then makes a tax deductible donation to the group every month in the full amount of the commission check. In this case, that individual is going to get a 1099 form from Cognigen (if the amount received is over $600), and that person will have tax liabilities on the year's total commissions. Yes, the individual can write-off his monthly donations to the group, but even so, that's probably not a dollar-for-dollar write-off. However, that individual may be more than willing to absorb the minor tax liability and consider it as a "contribution" to the group, in lieu of having to staff bake sales, supervise car washes, etc.

Cognigen would also be willing to create a contract between Cognigen and the non-profit group, stating that Cognigen would give a monthly "donation" to the non-profit group, commensurate with the amount of customer usage."

A Sample Church Youth Group's Web Page is in the link below (The whole concept is really web based with user going to your group's personalized website and thus generating your funding):


Sample Church Youth Group Fund Raising Website