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1099 contractor in State of Washington

edited August 2010 in General Payroll Topics
A contractor would like to donate her time and have us give the money to charity without her involved. Is that possible?



  • Elisabeth,
    What kind of entity are you?

    I saw this happen in a non-profit (educational, 501(c)(3)) -
    A long time member and contributor, teacher, leader, officer, etc. was moving from the area. Some of the members wanted to contribute to a gift/recognition for this person who was downsizing to move to a smaller home - so something physical was probably not a good idea. Since this was a traditional dance group, the suggestion was to have a choreographer, who, BTW, was a personal friend of the honoree, write a dance to honor the person. The choreographer was happy to do that gratis, but also recognized that a lot of the members wanted to contribute to the gift - so he suggested that whatever was donated for the gift be given to a charity agreeable to both the honoree. The organization did not handle the donations as a revenue/expense.

    Another example is the charity auction where a business donates services to be auctioned off. Or the auto dealership which donates a "free oil change" to the United Way to give away as a drawing prize at a fund raising meeting.

    This is the contractor donating services to the charity to help it raise money.

    On the other hand, David is correct that if this is a business situation and the reason you are paying the money is because you received services, it is income to the contractor who had a right to receive it and designate where the payment was to be sent.
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