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Selling goods for charity

2022-10-20

Question

Dear community

I sell earrings on my website to raise money for Think Pink. The entire amount goes into my account. This is therefore considered income.

I keep a small portion from this amount (costs for the materials used) and the other portion is transferred.
I do not transfer the amount to Think Pink myself, but rather a beauty salon with which I collaborate.

How should I enter the amount I transfer to the beauty salon? Is this considered a credit note or an expense? I only have a bank statement as proof.

Thank you.

Kind regards,
Katrien

I think you have a problem with the way you are doing it now...

I believe you 100% that you are transferring the money to the beauty salon so that the beauty salon can transfer it to the charity. But an auditor will not believe that, and I even think that, legally speaking, he is not allowed to believe it.

Either you transfer the money directly to the good

Or you transfer the money to the beauty salon, but that has no impact on the accounts, so that amount remains profit for you, in other words</

Or you have to ensure that there is some invoicing between you and the beauty salon in order to arrange the transfer in this way.

Because, for example, for that beauty salon... They receive some money from you in their account, but for them this is not turnover or income or anything else. It has no impact on their accounts. They then transfer the money to the charity and receive a certificate for 100 euros (I'll just stick something on it) and that certificate is in the name of the beauty salon. The beauty salon can use the 100 euros as a certificate, which is nice for them.

Less nice for you, of course...

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