QUESTION

Will I; as founder and only "employee" of a charitable organization, be able to include my own wages as an expense?

Asked on Sep 27th, 2012 on Business Law - Colorado
More details to this question:
I ask because I'd like to know how far into this I would like to go. If the responsibilities of managing this charity get to the point that I must do it full time, would I legally be able to include basic living expenses such as rent, food, clothes, etc for myself as a business expense? Or, is there any way at all that one can single handedly run a successful charity while supporting themselves at the same time? It is a small charity that will focus on donating money to religious centers and create scholarship funds for more established religious learning centers.
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1 ANSWER

Business Transactions Attorney serving Los Angeles, CA at Doland & Fraade
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I suspect you may not have qualified your organization with the IRS. You should know that compensation of "Insiders" in a not for profit is very technical and beyond the scope of this answer-site. A good start for you is the IRS website at www.irs.gov regarding charitable organizations.
Answered on Sep 29th, 2012 at 10:42 AM

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