Non Profit Daycare Question

[misspollywog]

I posted this in the main forum and then realized this is probably a better place to ask.

My dh and I are starting up a non-profit to host summer camps for disadvantaged youths up here at Yellowstone park. We've got a lot of fundraising contacts and volunteer support in place and I've decided to only take dc kids from teachers or college students so I can have summers off to do the camps.

My question is, can I donate a portion of the proceeds from the dc to the non-profit directly or do I need to claim it as income and then donate as an individual? Can I tell dcf's that x amount of the dc fees goes directly to our non-profit or would that be a problem on their taxes? Or, should I just tell dcf's they can add a donation on top of my rates and then lower my rates?

I'd love to use up to half of the dc monies toward funding the camps, just not sure how to do it or it it is even the right thing to do....

[Michael]

That's a tough one. Maybe Tom Copeland will answer. You can always ask him when we do the tax webinar.