Charging a Fee For Service
There are two general categories of fees for service.
Periodic fees for service: This is when you provide some form of service and receive a fee in return e.g. you provide a workshop to a group of paying participants.
Recurring fees for service: Are for ongoing billing for a service you are delivering, for example, monthly tuition for an afterschool program or monthly membership dues.
You can use Fundrazr and Mazlo to process recurring fees for service. If you use any other payment processor (e.g. Stripe, Square, etc…) you must let us know about money being received using the Deposit Notification Form.
Any funds provided in exchange for a service will not be tax-deductible and must be directly in-line with your stated project mission.
Projects wishing to enter contracts/agreements/MOUs with other legal entities for fee for service work, must check in with Social Good Fund prior to signing/entering the contract. In most cases, Social Good Fund will need to review and be party (sign) to the contract. In other words, DO NOT sign an agreement or contract for fee for service work without first checking in with Social Good Fund. Contact: socialgood@socialgoodfund.org
Please note: any fees received for services that are not directly related to your charitable mission may be subject to federal income tax, and are not permitted by Social Good Fund. In rare cases, unrelated business income may be appropriate, but is not permitted without expressed written permission. To learn more about UBIT Taxes check this resource.
Last updated