So, I read on a post, I can't remember who it was, but they were talking about doing a cake as a "donation" Now, is this saying she is baking a cake and donating it or as a way to make money without being in "business" pursee can you accept donations $$ from the customer?????

legally $$ is $$... if you are getting something for your money, its not a donation.
a donation would be something given without receiving money/goods in return.

You can not legally accept any amount of $$$ for a donated cake. However, I think this could be an ackward situation if they demand to give you some money from whatever orginazation it is. I'm interested in this answer also. I want to make some goodies for the schools to drop off with some business cards but I'm not sure if this is considered donating since it is to generate business or not. I do donate goodies to some local charity org. but I never thought about claiming those either. (I just started my miniscule business so I'm not sure how everything works yet) My DH has his own computer business so I know some answers because of that, but I'm just not as possitive when it comes to dealing with food.

Some people say that if you take only the money that the materials cost you, then it's a non-issue. You know--like boards, wrap, mixes, frosting, etc.

I happen to agree. But then--I'm a pretty laid back person in most matters and fail to understand why people's panties get in a wad over simple things anyway.

(No flames needed. That's not directed at anyone here--it's just my own personal way to deal with upheavals in day to day life.)

--Knox--

There are two different 'donations'

You can donate, as in give for free, to places that might order cakes in the future. Or cakes you did for practice. In this case, if you are not a licensed baker, you should not receive money for this, even for supplies. It technically makes it a sale.

A Donation to a charitable organization, would also be free. If you have a business, you can only deduct the cost of your supplies/materials. You cannot deduct the 'value' of the cake as a charitable deduction.

Also, beginning this year, you must have a receipt for all charitable deductions. IRS is toughening this rule. good old IRS.

HA HA KNOX! Panties in a wad....too funny.

I have donated cakes for auctions and I recieved no money for it. I look at it as a way to get my name out there.
Jacuqi

I donate cakes or gift certificate at no cost to the organization I'm donating to. They normally give me a document so I can use that as a write-off.