Free vs. Charging One Dollar

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Re: Free vs. Charging One Dollar

Postby Dave Miller » Sun Jun 19, 2005 11:16 pm

DJ Iron Mike wrote:
DJMC wrote:I've got one coming up where I'm going to require a signed contract........even though I'm not charging them.
I think Matt is onto something because even if it is a freebie, you have some sort of written agreement and some sort of proof to show for it.
I doubt most people would fool with a contract if it was a freebie but on the otherhand, regardless if it is a freebie or not, you can still be held liable in anything that could potentially come up.
That's why I write it up and charge a dollor. Getting that dollar on their own check acts to bind the contract.

But Donny is onto something even better.

djdonny wrote:You guys have left out the main reason why I ask for payment first and then donate back...

I've had more than one occasion where I've offered to donate services, and held the date, only to have the event cancelled (or some other similar change of plans). I don't like to be jacked around like that. So, I charge as per my usual contract (retainer to hold date, payment in full one month prior) and then write a donation check at the event.
So if it's cancelled, do you keep all the payments received? Hmmm.... Sounds good....
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Postby djdonny » Mon Jun 20, 2005 3:29 pm

So if it's cancelled, do you keep all the payments received?


Absolutely. I agree to donate the DJ cost back to the agency at the event. If there's no event, there's no donation.

I'm more than willing to donate services for a good cause, but too often, it seems, charitable organizations feel perfectly comfortable with jerking around service donors in ways they never would consider trying on their monetary donors.
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Re: Free vs. Charging One Dollar

Postby jonnyrockcom » Sun May 28, 2006 10:56 am

We have a signed agreement with all of our events, even when it's for a charity or a "good cause". The biggest reason is that people in charge know what the services are worth if it was a regular paid event.

Our agreement would say "the price of this event is $850 (less an adjustment of $850) etc.

The second biggest reason is damage to any equipement. [/u]We donate a system sound 5 sundays during the winter for the local winter sports team for their down hill race. This year they blow out a tweeter in one of the speakers (so besides having the time and milage to go setup the system, come back and pick it up), I had to drive to the repair (85 miles around trip plus time) then I had the bill for the repair and then go pick it back up again (85 miles around trip plus time).

I never consider ascap and bmi for free event open to the public, but will now. jonny[/b]
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Re: Free vs. Charging One Dollar

Postby Cap » Sun May 28, 2006 1:23 pm

Check with your CPA.

When income is claimed, it is subject to state, federal, local, FICA, workmen's comp, etc fees. Give the proceeds back as a charitable deduction reduces gross taxable income liability however some pretax liability remains. It is almost (key word...almost) a wash.

Collecting a dollar for a donated service is really not necessary but if it provides a warm and comfy, by all means.

If doing a freebie, always have a signed contract. Most liability insurance carriers require a signed agreement before they'll cover you.

If one doesn't use a contract, doesn't carry liability insurance, and is winging the entire endeavor from the seat of hsi/her pants, this is just mundane reading, isn't it?
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