Nonprofits collect LaterPay Donations, while for-profit organizations can ask for Contributions with LaterPay.
Typically, a non-profit organization, or charitable cause, will receive donations -- and they are tax-deductible. An example of a donation would be giving $1 to feed a dog in an animal shelter.
Contributions, on the other hand, are given to for-profit organizations, a collection or a campaign -- and they are not tax-deductible. An example of a contribution would be paying $1 to a publisher to support quality journalism.
So, for-profit companies can ask for Contributions through LaterPay, and nonprofit organizations can use our service to collect Donations.
Specifically, if a person, group, company, organization, or enterprise is recognized by the IRS as a nonprofit with a 501(c)(3) tax exemption, that organization can accept LaterPay Donations. If you are not sure if your organization is a nonprofit, the IRS Nonprofit Charities Database offers a service called “The Tax Exempt Organization Search Tool.” This tool allows you to enter the name of an organization to see if that organization is tax-exempt or not. LaterPay does not charge or calculate sales tax on Donations.
Any person, group, company, or organization can ask for LaterPay Contributions using our LaterPay links and button tool.