# My tips go to charity and boom, my tips increase!



## mattadams (Apr 19, 2016)

I was hesitant to post this... because I know there are people out there who would use this great idea fraudulently to pocket extra cash... which I hope most people get is a good way for karma to cause bad things to happen to you of course .
So I've been raising funds for National MS Society. My neighbor is in the diagnosis stage of MS, and I have a co-workers husband with MS so severe he can't move around without a scooter, etc. I'm doing the MS150 bike ride for National MS Society and raising funds anyway I can, so thought, heck, I'm not really getting any tips anyway, may as well say all my tips are going to national ms society and see what happens!
So I had two signs made up by a laser engraver friend of mine. One fairly large (about 10" x 2") that I have posted in the front, and a smaller one, about 6" x 1" that is posted in the back, explaining that a portion of my fares and ALL tips go to National MS Society. I went from getting one tip every 30 or 40 rides, to getting a tip every 3rd or 4th ride... generally AT LEAST $5 and up to $20 tips. It's also led to some good conversations and some genuinely good people being educated more about the disease.
And yes, all my tip money is donated to National MS Society. Sometimes on my own fundraising page, sometimes on friends pages, but it all gets donated.

http://main.nationalmssociety.org/site/TR?px=11897526&fr_id=27037&pg=personal if you'd like to donate .

Now. Use this information for good and not for evil.


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## mattadams (Apr 19, 2016)




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## mrlasvegas (Aug 9, 2015)

I wonder if I put up a sign that my fares and tips are donated to Visa and MasterCard if it would have the same effect? Seriously though. great job. You are definitely a great individual.


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## valor (Aug 25, 2015)

mattadams said:


> may as well say all my tips are going to national ms society and see what happens! ...Use this information for good and not for evil.


That's really thoughtful!
You might consider making the sign more specific. Because "a portion" could be .000002%. Or at least be ready to explain about how much you donate in case you get asked. Thanks for being a good person though.


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## mattadams (Apr 19, 2016)

True, I thought about that. The "portion" will vary depend on how much I'm making and other bills I've got going on, etc. and I'd hate to promise I'll donate 5% or 10% or whatever if I find I'm not able to do that that particular time period.


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## Kru (Feb 4, 2016)

How does deductions work in this situations?
I am as well thinking to put sign that all the tips will go to certain non profit.

I will not show that I received any tips when showing earning during tax return and deduct the donation from earning.
Does that really help?

Lets say I received 1099 with $2000 after uber fees.
I show expenses as $1000 from 2000 miles of driving. (just guess)

If I donated $1000 does my profit from Uber set to 0.00$?

or it counts my total income from my regular fulltime job??


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## mattadams (Apr 19, 2016)

Have you never donated to charity before?  your cash tips would probably not get reported to the irs anyway (unless you're like super honest, or like with Lyft if it happens electronically and therefore has to get reported).
So if you make a charitable donation you can deduct it from your taxes. Within certain limits (and requiring proof for larger amounts... Receipts, etc.) you then don't pay tax on that portion of your income. I think it only does it for a certain percentage of income and probably depends on your tax bracket... Best to look into that with a tax professional... But if I make $100k in a year and I donate $10k, I pay taxes as if j made $90k instead of $100k. It is your overall net income though not broken down by job.


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## UTX1 (Dec 7, 2015)

Matt, you're one of the good ones.

Ordinarily, I don't think much of tip signs and can see why most often
they cause many riders to get "turned-off" even before the ride begins.
They feel put on the spot and they often just feel uncomfortable about
seeing a written plea for extra money positioned in their line of vision.

When I saw this, I didn't feel anything like that. Your sign seems to
invite good people to participate in doing something good. Bravo !

Sure, there will be riders too cynical to see any good in your efforts.
I'd choose to believe that those are the exceptions, rather than rule.

This is different. I'd support this or a similar effort without feeling
badgered or cajoled into offering a tip. It appears offered up in a good manner.
The sign looks professional and it doesn't look like you're out there to run a scam.

Also, if this is the only visual you draw focus or attention to during a ride,
I'd say you'll remain successful in your efforts. Having too many things
going on in the car is unsettling for some ppl, even if it's for a good cause.

Keep fighting the good fight.


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## Gung-Ho (Jun 2, 2015)

Kru said:


> How does deductions work in this situations?
> I am as well thinking to put sign that all the tips will go to certain non profit.
> 
> I will not show that I received any tips when showing earning during tax return and deduct the donation from earning.
> ...


Your total taxable income would be reduced by your charitable contribution. You can look at it as your uber income being zero but it doesn't really work that way,charity is a schedule A deduction not a schedule C so you still are liable for self employment taxes on uber income minus business expenses.


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## BenjaminBar (Jun 1, 2016)

I would add:

Consider the scale of the issue (how many people are being harmed or killed by this problem?)
Consider the tractability of the action (how much difference will this cause actually make toward solving the problem?)
Consider the room for more funding of an organization (what would this organization do with more money?)
As a general rule of thumb, aim for the world's worst off individuals
These are pretty basic but I think most mainstream social causes (e.g. Black Lives Matter, ALS Ice Bucket Challenge) fail to take these considerations into account.


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## mattadams (Apr 19, 2016)

A bit of an old post, but since I just signed up for another National MS Society page, thought I'd post the link, in case any fellow driver would like to help out with a tax-deductible donation . 
http://main.nationalmssociety.org/goto/mattadamsaz


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## steveK2016 (Jul 31, 2016)

Will im sure you have pure and noble intent, i rarely believe or take at face value, anyone claiming to give portions of anything to anyone. I don't trust million/billion dollar corporations to follow through, i certainly wouldn't trust an uber driver.

Especially being a driver and knowing what you're making.

Good luck, hope the good Karma continues but i wouldn't tip more from a sign like that. Id automatically assume a scam or a sob story to get more tips.

But if you think it works, keep on keeping on!


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## Mars Troll Number 4 (Oct 30, 2015)

How about putting up sign that a portion of the fares/tips goes to the poor?

That would be honest...


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## mattadams (Apr 19, 2016)

But I"m not poor, so that's not honest. They go to charity, which is honest.
One of my neighbors and best friends have MS. I see the effects of it daily. I raise thousands of dollars a year for different charities, between National MS Society and the Leukemia and Lymphoma Society (hence my profile photo where I was running the Disney World Dopey Challenge last year for LLS).


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## Mark Askins (Mar 13, 2017)

Brilliant idea! I was thinking about this today as I was driving around the beautiful Bay Area and feeling very fortunate and grateful. A couple thoughts I had as I drove around and read this thread...

How much more money and exposure would be raised if this was a structured campaign where drivers who opted in chose a wonderful nonprofit like LLS or MS in a given metro area or state to designated all of or a portion of their tips for a given week, or month, to a specific charity and have a designated charity each month or week. The site could be used to apprise drivers of the opportunity, track the earnings, pool the money, chose the charity, and give the riders a chance to see the impact of their tips when combined with others. Not sure of the overhead, expense, or possible legal or fiduciary barriers in creating something like this..

2. There can be very friendly competitions set up between metro areas or amongst drivers to see who brings in the most money for the given charity.

3. Having collateral material/brochure in the car for the charity to share with the riders if they are interested.

4. Ask the rider if there is a charity that is near and dear to their heart and spread the word.

All the best. A kindred spirit in the Bay Area

Mark


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## mattadams (Apr 19, 2016)

Yeah I think that would take several drivers in the same area driving for the same cause... and most drivers likely wouldn't be interested, but not a bad thought. 
I'm getting a new sign made up for Leukemia and Lymphoma Society, since that's where my tips will be going until the end of the year. Feel free to visit the link in my signature .


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## wk1102 (Dec 25, 2015)

mattadams said:


> Yeah I think that would take several drivers in the same area driving for the same cause... and most drivers likely wouldn't be interested, but not a bad thought.
> I'm getting a new sign made up for Leukemia and Lymphoma Society, since that's where my tips will be going until the end of the year. Feel free to visit the link in my signature .


Nice job man!


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## Kerplunkenstein (Sep 3, 2015)

All you need is just one IRS worker to hop in your car and next thing you know, you're getting audited or worse


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## elelegido (Sep 24, 2014)

Mark Askins said:


> 3. Having collateral material/brochure in the car for the charity to share with the riders if they are interested.


What on earth are you talking about? Why would you need collateral in your car?


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## mattadams (Apr 19, 2016)

I think he's talking about collateral as far as marketing material, not like loan stuff.
Kerplunk, why would I get audited for saying my tips go to charity? I can provide receipts, instantly, for thousands of dollars worth of donations every year. I actually do donate the money. Why would I have anything to fear?


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## tohunt4me (Nov 23, 2015)

mattadams said:


> View attachment 44795


Good cause.
Just watched " Close Encounters of the Third Kind" yesterday. Realized I saw it 40 years ago in the theaters !
40 YEARS !
Anyway,Terry Garr who played Richard Dryfuss wife in the movie has M.S. A shame how it sneaks up on people.
A very good cause.


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## Kerplunkenstein (Sep 3, 2015)

mattadams said:


> I think he's talking about collateral as far as marketing material, not like loan stuff.
> Kerplunk, why would I get audited for saying my tips go to charity? I can provide receipts, instantly, for thousands of dollars worth of donations every year. I actually do donate the money. Why would I have anything to fear?


It just takes ONE IRS worker with a hard on to bust someone to get into your car and audit you. Even if EVERYTHING is on the level, is it really worth it? What % are you giving to charity?

Also you say you have receipts. UMMM do you have receipts for cash tips? To be honest, if I'm a pax and I see this in an Uber car, I would feel VERY VERY uncomfortable. This reminds me of


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## Fuzzyelvis (Dec 7, 2014)

Kerplunkenstein said:


> All you need is just one IRS worker to hop in your car and next thing you know, you're getting audited or worse


Let's assume you decide to do this simply to increase your tips.

If you ALREADY donate to charity then you could certainly get away with it even if you didn't increase what you donated.

For instance, let's assume you donate $500 a year to the SPCA as I do. All you will be doing is marking the tips for your donation rather than money from your regular job or wherever you get the rest of your money from. So to appease the IRS agent you put in your taxes that you received $50 in tips from that year and you donate $500 to a charity. Unless they can show that you got more than $50 in tips they can't prove that that $50 wasn't part of the $500. And since we all know Uber drivers get shit for tips it would be quite believable depending on how much you drive. Basically as long as you donate as much to a charity as you make in tips or at least that you declare in tips you'd be pretty much covered. The fact that you would've made that donation even if you weren't working for Uber and even if you got no tips is not something that they would know.

Take this however you want by the way.


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## mattadams (Apr 19, 2016)

Kerplunkenstein I get your point... but hte point is... why would I have to fear an audit? An audit is just verification that the income and deductions you provided in your taxes is actually valid. If I have all the verification needed, then let them audit away, I have nothing to hide, and I do my taxes honestly. 
Fuzzyelvis, good point... I don't keep exact track of it but if anything, I donate far more than I receive in tips. I've had times where I'lld onate the tips on a weekly basis, etc. or I'll save it up and odnate it monthly or whatever, but it gets donated. I don't account for it dollar for dollar, but as I said I generally donate more than I receive.

Uber is my part-time job, whenever my schedule happens to allow it. I would estimate that last year I got around $150-200 in tips. I donated about $2500 last year to various charities.


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## Kerplunkenstein (Sep 3, 2015)

Adams, maybe your heart is in the right place, but you're opening yourself up to possible prosecution. Lets say that you give 3% of every tip to charity, and I as a pax gives you a $10 tip in cash. How do you account for that? Where is your paper trail illustrating that you received a $10 tip and that you donated .30 cents to charity?


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## mattadams (Apr 19, 2016)

Umm it's a little charity tip sign. Good grief. Prosecution? For what crime? If you look at the numbers, I donate 1000% of my uber tips to charity, 10x the actual amount of tips I received since as I said, I got about $200-250 in tips, but donated about $2500 last year. If they really wanted to audit, all they'd find is that I donate a good chunk of my overall money to good causes. In fact, depending on how you look at it, about 40% of my overall uber revenue, after taxes, was donated to charity. Can't imagine being prosecuted for that.


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## nickd8775 (Jul 12, 2015)

Let's say you pay 25% in taxes. If such sign increases your tips over 4 times, it's profitable even if you don't keep any tips.


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## Kerplunkenstein (Sep 3, 2015)

mattadams said:


> Umm it's a little charity tip sign. Good grief. Prosecution? For what crime? If you look at the numbers, I donate 1000% of my uber tips to charity, 10x the actual amount of tips I received since as I said, I got about $200-250 in tips, but donated about $2500 last year. If they really wanted to audit, all they'd find is that I donate a good chunk of my overall money to good causes. In fact, depending on how you look at it, about 40% of my overall uber revenue, after taxes, was donated to charity. Can't imagine being prosecuted for that.


Okay you still haven't answered the question. WHERE IS THE PAPER TRAIL for your tips? If a pax tips you in cash, where is the paper trail?????

I'm becoming INCREASINGLY alarmed as to the fact that you can't answer this question.


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## mattadams (Apr 19, 2016)

And I'm still not sure why I would even need one, or why you are so pissed off about it.
Lets use your example. IRS guy goes for a ride in my car. Says "hmm... this seems suspicious... I think we'd better audit"
IRS guy: "So it says on your sign you donate all your tips to charity"
Me: "Yup, this is true"
IRS guy: "How much would you say you earned in tips last year"
Me: "Probably about $200 or so"
IRS guy: And how much do you have in the way of receipts to prove donations were made?"
Me: "about $2500"
IRS guy: "So you're saying you donated more than 10x the amount you took in for tips?"
Me: "yup"
IRS guy: "but do you document every tip you receive?"
Me: "no, but I just keep that money in a separate place in my car, and when I take that cash out of the car I count it up and donate it. Often donating at least twice as much was received in tips. I also offer the passengers the ability to donate directly to the non-profit via an app on my phone, if they'd prefer to get a receipt for tax purposes or if they'd like to know 100% that their donation went to the correct cause without worrying if I actually donated it or not"
IRS: "You sure sound like a stand up guy then."
Me: "Thanks"

We aren't talking thousands of dollars here. We're talking a $5 tip here, a $10 tip there, usually a $1-2 tip... if that. If a customer wants a receipt they can just donate directly. I'm not going to be giving out receipts for $1 tips, and anyone who would try to deduct a $1 donation is likely insane.


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## Kerplunkenstein (Sep 3, 2015)

AGAIN, there is NO PAPER TRAIL that shows someone tipped you in cash. Let me clarify: When I donate money to charity, I write a check, I use my charge card and VOILA there is a PAPER TRAIL. But when someone is using CASH, there is NO PAPER TRAIL. As an IRS agent, how do I know how much you made in tips w/o a paper trail???? 

I'm not sure if you're being dense on purpose to evade the question and be coy, but in all my years I have never found anything to be endearing and the way you're dancing around my line of questioning CERTAINLY IS NOT endearing.


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## mattadams (Apr 19, 2016)

So you are talking about a receipt confirmation that I donated the money? Oh, of course I have those. I get email receipts whenever I make a donation and I keep all of them. I don't keep track of the exact tips I get, since I get them in cash and make the donation with credit card anyway... I have receipts for all my donations. Do I break that down by individual tip or day, etc.? No, it just all goes into the same pot. I also make all my donations with credit card so they could be tracked that way if needed.


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## steveK2016 (Jul 31, 2016)

You are basically donating your tips and Uber earnings to Charity?

What mattadams makes sense as far as IRS is concerned. Tips don't have a paper trail, even in food service industries. As long as the amount he donates far exceeds the reasonable expectation of tips, which Uber has a $0 expectation of tips, I don't think he's got much concern with the IRS.

My biggest concern is getting someone from that organization a ride and them wondering if you have a sponsorship agreement that authorizes the use of their logo. Im a Marketing guy, I've participated or tried to participate, in various types of charity promotions and always had to get an authorization/sponsorship agreement in order to use their logo. They just want to make sure everyone that uses the logo is 100% legit.


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## mountainchick04 (Mar 21, 2017)

Thank you for doing this and for raising money for MS. This is an awesome thing that you are doing!!


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## Go4 (Jan 8, 2017)

Kerplunkenstein said:


> AGAIN, there is NO PAPER TRAIL that shows someone tipped you in cash. Let me clarify: When I donate money to charity, I write a check, I use my charge card and VOILA there is a PAPER TRAIL. But when someone is using CASH, there is NO PAPER TRAIL. As an IRS agent, how do I know how much you made in tips w/o a paper trail????
> 
> I'm not sure if you're being dense on purpose to evade the question and be coy, but in all my years I have never found anything to be endearing and the way you're dancing around my line of questioning CERTAINLY IS NOT endearing.


He donates the tips, the customer need the paper trail, not the drive. And then only if the pax want to deduct the tip as a charitable donation. The drive is documenting the tips and the donations.


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## Kerplunkenstein (Sep 3, 2015)

Go4 said:


> He donates the tips, the customer need the paper trail, not the drive. And then only if the pax want to deduct the tip as a charitable donation. The drive is documenting the tips and the donations.


you're incorrect. I know someone who works for the IRS, he said you have it backwards.


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## Lee239 (Mar 24, 2017)

mattadams said:


> View attachment 44795


A portion can mean 1%.


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## mattadams (Apr 19, 2016)

exactly. It's stupid to keep debating. If you're so worried about me being audited, feel free to send the IRS my way. I'm not concerned. I donate all my tips, and I do donate a portion of other proceeds from doing uber/lyft... technically, I donate about 50% of all the money I make on uber/lyft, since uber is just my part-time job. My bigger concern would people who would take the charity idea and misuse it, say "tips go to a good cause" and the good cause is their pockets, or something like that. My conscience is perfectly clear and I have zero concerns of audit problems.


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## Kerplunkenstein (Sep 3, 2015)

mattadams said:


> exactly. It's stupid to keep debating. If you're so worried about me being audited, feel free to send the IRS my way. I'm not concerned. I donate all my tips, and I do donate a portion of other proceeds from doing uber/lyft... technically, I donate about 50% of all the money I make on uber/lyft, since uber is just my part-time job. My bigger concern would people who would take the charity idea and misuse it, say "tips go to a good cause" and the good cause is their pockets, or something like that. My conscience is perfectly clear and I have zero concerns of audit problems.


Please leave me out out of your illegal money-making scam. Consider this a cease and desist warning!


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## steveK2016 (Jul 31, 2016)

mattadams said:


> exactly. It's stupid to keep debating. If you're so worried about me being audited, feel free to send the IRS my way. I'm not concerned. I donate all my tips, and I do donate a portion of other proceeds from doing uber/lyft... technically, I donate about 50% of all the money I make on uber/lyft, since uber is just my part-time job. My bigger concern would people who would take the charity idea and misuse it, say "tips go to a good cause" and the good cause is their pockets, or something like that. My conscience is perfectly clear and I have zero concerns of audit problems.


Is the IRS paying a finders fee? If I'm gonna be a rat, I'd rather be a paid rat...


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## Laura Allison (Apr 5, 2017)

Matt, this is an excellent idea! I had the same thought but different charity. A tithe is 10%-it's a good number to aim for. Pay yourself 10%, then 80% goes to your FPU Four Walls and Debt. 


mattadams said:


> I was hesitant to post this... because I know there are people out there who would use this great idea fraudulently to pocket extra cash... which I hope most people get is a good way for karma to cause bad things to happen to you of course .
> So I've been raising funds for National MS Society. My neighbor is in the diagnosis stage of MS, and I have a co-workers husband with MS so severe he can't move around without a scooter, etc. I'm doing the MS150 bike ride for National MS Society and raising funds anyway I can, so thought, heck, I'm not really getting any tips anyway, may as well say all my tips are going to national ms society and see what happens!
> So I had two signs made up by a laser engraver friend of mine. One fairly large (about 10" x 2") that I have posted in the front, and a smaller one, about 6" x 1" that is posted in the back, explaining that a portion of my fares and ALL tips go to National MS Society. I went from getting one tip every 30 or 40 rides, to getting a tip every 3rd or 4th ride... generally AT LEAST $5 and up to $20 tips. It's also led to some good conversations and some genuinely good people being educated more about the disease.
> And yes, all my tip money is donated to National MS Society. Sometimes on my own fundraising page, sometimes on friends pages, but it all gets donated.


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## DelaJoe (Aug 11, 2015)

Uber should be the one that donates to charity of drivers choice...I think one day a year Uber should donate to the charity of the drivers choice (Give the driver a choice of 20 charities)...So lets say Uber donates 50% of its proceeds to the drivers charity.


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## lnrmom (Jul 29, 2015)

mattadams said:


> Yeah I think that would take several drivers in the same area driving for the same cause... and most drivers likely wouldn't be interested, but not a bad thought.
> I'm getting a new sign made up for Leukemia and Lymphoma Society, since that's where my tips will be going until the end of the year. Feel free to visit the link in my signature .


I think I'll be doing the same, LLS is near and dear to my heart and was considering dedicating all tips for a month to see how it goes.


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## Tomahawk21 (Apr 3, 2017)

Matt where did you get your sign done at? Thinking of getting one for breast cancer or leukemia. Lost Grandmother to Leukemia after she survived her bout with Breast Cancer. So if I can help raise some extra funds I'm all for it!


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## mattadams (Apr 19, 2016)

http://www.ebay.com/itm/2-x8-Engrav...hash=item33c175bc29:m:myfoTB4Jh9SWiLbhkS4YcnA
I ordered from this person, but I designed it myself with the logo and everything so they didn't have to do any work for it aside from engraving it. They need it in eps/ai format for engraving.
If you decide you want to do it, I can help you design it... for a donation to Leukemia and Lymphoma Society on my page... .


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