I have a client who makes a product for local school organizations. The parents buy the items through an online store, then my client gives the profit back to the school organization. How should I account for the money they give back to the organization from the profit? Basically, I want to make sure they show no income from the sale. If I count it as a donation, it will be subject to the rules of donations on their taxes, so they may not get the full benefit.
