Hi there,
I'm volunteering with a social business and am trying to help them find out the legal issues surrounding donations from individuals. They are a for-profit corporation, so I know that any donations they receive are not tax-deductible for the donors. But I'm having trouble finding reliable information about how for-profit corporations should handle donations from individuals in terms of taxes, legal accountability, etc. Here are my specific questions:
1) How/where do corporations report donations from individuals on their taxes? (somewhere on form 1120?)2) Where can I get more information about the legal restrictions surrounding the acceptance of donations by corporations (with regards to conflict of interest, etc.)? I've been trying to search within "Title 26: Internal Revenue" of the Code of Federal Regulations on this site:
4) Are there legal limits about what a corporation can do with donations from individuals? (e.g., does it have to be for a specific project or can it just go into a general pot of funds?)
Any help you can offer would be GREATLY appreciated! Also, if you can point me in the direction of specific tax documents that discuss donations to corporations (instead of to non-profits), I would be so thankful.
Thank you!