Can a Not For Hire trucking company use its trucks for charity work (food bank) to get food from companies donating the goods to the food bank and still retain the Not For Hire status? Also what happens when the Not For Hire company hires drivers to drive the trucks from an outside source for this charity work?
Not For Hire Charity Work
Discussion in 'Trucking Industry Regulations' started by Sportster2000, Feb 17, 2013.
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Nope...not at all. Just because it is a non profit does not make it non commercial. It is "commercial" operation every way shape and form. They may be a "private carrier", but defiantly are "for hire".
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I understand that the food bank is a private carrier. The question is when a seperate company that is a not for hire operation decides to do some charity work for the food bank by hauling goods from point a to point b and not get paid for it by anyone. The food bank is not hiring them. The Not For Hire comapny then pays a contract company to drive for them. The Not For Hire does not get paid by the goods maker or the food bank but decides to do this work for free. Does this change the Not For Hire status of the company that is doing this for free?
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I wouldn't think it would change the "Not For Hire" status. But why would the original not for hire company pay another company to haul for them?? Wouldn't they be losing money. Unless i'm misunderstanding what you're saying.volvo1026 Thanks this.
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Even though no one is being paid, the food bank is a a commercial business...not an individual... and benefiting financially from the haul (by not having to pay for it), hence the commercial status which would not qualify as Not for Hire. If it was moving food for you neighbor, you might be good...but for a food bank you would be subject to all of the commercial regulations.
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Yes the Not For Hire Company would be losing money if you look at strictly by outside eyes. It is just the way the company is set up, I know it sounds very odd. You are understanding exactly what I am trying to say. Company A hires Company B drivers to pick up product from Company C to deliver it to Company D, with the only money exchanging hands from Company A to Company B for charity as it is being told to me.
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I would actually contact a lawyer in the state this is taking place. Non-profits may be considered commercial entities in the strictest sense but there is something about donations of time and materials under some state laws that would allow this to take place because of the purpose of the non-profit (social aid, animal aid, etc ..).
If the use of the truck is the main issue, then donating the exact cost to move the material to the non-profit while at the same time arranging the move may be one solution - the donation is a tax deduction depending on your company situation is while the time involved can be written off as a loss.
Again talk to a lawyer and your accountant about these two ideas.
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