Just curious as to why the Non-Profit Discount (FREE Strictly Business account) is limited to 501©(3) organizations (Charitable organizations). Is there a tax benefit to DH for providing this service free of charge? Is it a philosophical thing that DH wants to give back to those giving freely to others?
I can only guess as to the full extent of DH’s motives (I’m just a customer here as are most others, and I have no special knowledge of DH’s thinking), but I think the answer to both of your questions in quite likely to be “yes”.
Donations to 501©(3) organization are deductible on their corporate U.S. Tax returns, which helps justify the “business considerations” involved in indulging their desire to share some of their success by helping charitable organizations.
IANAAccountant or Lawyer, but my understanding was that services provided to a charity were not tax deductible. A quick search, though, seems to indicate that products and pro bono services are, but time is not.
IANAL either, but I do have some experience with circumstances such as this, and I believe it is entirely possible that the donation of web hosting services, functionally equivalent to a “product” and having a clearly established market value, are tax deductible.
I think the indication you received in your quick search may well be accurate. Several years ago a corporate client of mine engaged my web development services to work on a project for a large national 501(s)(3) corporation. The charitable organization treated those services as a “gift in kind” from the corporation and the corporation’s tax professionals assured the corporate managers that, as such, the funds the corporation expended in that endeavor (my bills rendered for those specific services) were tax deductible.
Another example with which I have experience is a circumstance where a performer’s fee for performing is considered such a “service” as opposed to being a donation of time (as could be the case if that same performer donated his/her “time” working for the charity in some other capacity and for which the performer is not normally compensated).
What I do know for certain, is that these things are rarely as “simple” or “clear-cut” as one might think; and that it is probably possible to find an attorney or accountant to argue either side of a contested determination .