But in the email they asked if I wanted the money, or I could donate it.
Right now I could use the money, but now I feel just a little bad about it.
Though I do appreciate your well cultivated sense of suspicion and cynicism. Keep it up!
-- OR --
You file it as income to your sole proprietorship or llc; you "sponsor" something charitable as an expense.
Either way, the deduction and the income are at best 0 sum.
Though, if it's less than $600; they may not file a 1099 and you may "forget" to report it.
I'm a regular salaried employee, all my income is reported on a W2. Pre-Trump, if I donated $ to my favorite charity...it's deductible if I exceed standard deduction.
That is to say that on w2 income you will pay payroll tax and on 1099 you may pay self employment tax -- in addition to income tax. You then get to deduct the income tax only. So the presented case, to get paid a small sum as a contractor that either you or the company will donate to a charity; it's going to be a net 0 or net negative to take the income and then donate it 100% compared to letting the company donate it.
The relevant changes were to the standard deduction and the % cap (if you're donating >50% of your income). Technically, the standard deduction doesn't matter here at all, that's a choice, it would be a net negative for the filer to choose itemized over the standard if they don't exceed the standard.
The 2018 changes also effect the pass through rate, so there is a small possibility that if you took payment in your pte, you'd be taxed at 21% cap, your business didn't make enough to pay self employment tax, and then you donate the money from your normal earned income at the 22 or 24% rate.