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  • 1.  Professional Services Definition

    Posted 09-20-2024 01:06 PM

    Hello, I know that professional services is not a charitable contribution.  My question is what is the criteria of a professional service?  Is it one that has a degree or special education in a specific industry or would it be for any type of service?  Examples...if a florist wants gives of her time and flowers to decorate for an event is that a "professional service"?  Does it matter if they sell goods?  Or, if a cleaning service provides cleaning is that a "professional service"?

    Just wondering if "professional service" would only those that have a degree or special education; or, does it apply to anyone that is in business or sells a service?

    Thank you



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
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  • 2.  RE: Professional Services Definition

    Posted 09-20-2024 01:19 PM
    I am not sure where you are seeing the phrase "professional service."

    In IRS Publication 526 it talks only about services.

    In accounting lingo, "professional" services are discussed for GL booking purposes. Here's one definition: "It is a term that refers to any business, department, or individual whose core output is a service or expertise rather than a manufactured product. A few examples of professional services include accounting, advertising and marketing, and legal services."

    John
    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Professional Services Definition

    Posted 09-20-2024 01:41 PM

    Thanks, John.  For my florist example, her time to prepare flower arrangements and and deliver does not qualify as a charitable contribution but product used can qualify as a donation?



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------

    Original Message


  • 4.  RE: Professional Services Definition

    Posted 09-20-2024 01:54 PM
    That is correct.

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 5.  RE: Professional Services Definition

    Posted 09-20-2024 02:30 PM

    The tax code identifies charitable contributions as gifts of "cash or property other than cash."  I find it helpful in making these distinctions to ask, "Was there a contribution of money or property?"

     

    In the examples at hand, the time to decorate for an event is not property, and therefore is not a charitable contribution, but the flowers would be considered an in-kind gift of property.  Similarly, cleaning services is not a transfer of property, so would not be  a charitable contribution.

     

    This analysis also helps with gifts of partial interests.  If, say, a car dealership lets you use a car, they have not made a gift of their entire interest in the car, so that is not a charitable contribution, but if they give you title to the car, that would be a gift of property and therefore a charitable contribution.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

    Alan

     

    Alan S. Hejnal (he/him)

    Data Quality Manager

     

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    Original Message


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