Would You Donate A Cake?

Business By dandelion56602 Updated 16 Dec 2008 , 7:27pm by kimster

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dandelion56602 Posted 15 Dec 2008 , 10:25pm
post #1 of 6

I know there is a topic on donating for advertising for a football . Mine is a little different. I've not been asked & not 100% sure I'll get the order, but...

I was asked yesterday in a hurry by an associate paster to keep in mind Jan 4th for our lead pastor's bday. They are having a church wide fellowship that night too. My assumption is they'll be serving the slew of people as well as a cake for him. I do know they're asking people to bring desserts so I'm not sure how much cake they would order--guess 2 12x18 & maybe a different tiered cake for presentation (at least this would be my suggestion).

My question would you donate either the sheet cake (which would be $94.50 per cake @ $1.75/serving) or a 6,8" stacked (which would be $99 @ $2.75/serving)? I know the church can afford it, but if they looked at 2 sheet cakes & a small tiered is $300. If I didn't donate the small & they wanted a tiered I would suggest a 12, 9 & 6 ($275) & the total would be $464 for all 3 cakes or $369.5 if they dropped a sheet cake. I'm pretty sure their eyes would pop out if they saw $464!

I guess I'm asking b/c there is always potential customers lurking. And I'm guessing there will be 300 people at the event. I'm just not sure if it would be worth it to bite a big bullet to get "potential" customers or not. Or another question, would you give them a "discount" to make it look better on paper?

Any suggestions appreciated.

5 replies
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Sweet_Guys Posted 15 Dec 2008 , 10:46pm
post #2 of 6

We always bill for what it actually would cost the average person and deduct out the donated portion. That way, they can see what it would have cost if they had paid full-retail.

As far as actually donating the cake, did they ask you to donate? Is it something you feel you should do? Is it your church?

Paul & Peter

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kimster Posted 16 Dec 2008 , 12:43am
post #3 of 6

Offer to donate, ask for a donation receipt or a written acknowledgement and use it on your tax return as a charitable gift. Schedule A on IRS Form 1040. Any little bit helps! thumbs_up.gif

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classiccake Posted 16 Dec 2008 , 3:23am
post #4 of 6

Dandelion,

Here is how I would look at it. Don't think about time, but think about materials. You could probably do the cake at a cost of $50 or less for materials. Are you willing to spend $50.00 to get your name and a sample of your cake to 300 people?

I look at donations as advertising. I have gotten some loyal customers this way.

I do appreciate it when my places offer to pay me for the cake. That way, I have the option of discounting or donating. I agree with the above, that if I discount I always show the total, the discount, and the final amount due. That way they know I have helped them.

Evaluate where you are at with your business and if the cost is worth it to you.

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dandelion56602 Posted 16 Dec 2008 , 4:58am
post #5 of 6

Yes, it is my church. I guess I'll wait for a response to my email that gave details of cost & what it would include. If they are willing I'll jump on board for sure. I guess I'm just wondering if they decline b/c of cost if I should offer a discount or offer to donate one of the cakes? I'm already pretty sure I would include more elaborate decoration on a stacked cake b/c I'm one who likes a WOW factor, need portfolio pictures & would want people to remember. There are both ends of the spectrum (as far as financial goes) that attend.

Kimster thanks for the tip on the forms. Could I still get a donation receipt if I only donated a portion? And business is just starting. I guess I'll see what the response is & make a decision. My dream come true is a big order!

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kimster Posted 16 Dec 2008 , 7:27pm
post #6 of 6

As long as you can show how you calculated the donated portion and your written evidence from the church (i.e. a receipt) agrees. I'm not a tax attorney or anything else along those lines and I'm not licensed to give tax advice. I'm just a financial planner by day, cake fanatic by night.

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