discuss: Advertisement banner on tldp.org?
Subject:
Re: [discuss] Advertisement banner on tldp.org?
From:
Rick Moen ####@####.####
Date:
7 Jan 2009 23:16:33 +0000
Message-Id: <20090107231510.GI6223@linuxmafia.com>
Quoting Borden Rhodes ####@####.####
> Just a quick note in case this is ever revisited: it's not strictly
> true that you have to incorporate and register in a charity for people
> living in those countries to claim deductions.
Nor did I so claim.
What I said was that IRS certification of an organisation being a
tax-exempt charity, as that term is defined under United States Code
title 26, section 501(c)(3) * , i.e., an IRS "determination letter" of
501(c)(3) charity status, is available only to groups that prove to IRS
that they've incorporated as non-profits (and met other requirements).
Nothing stops any group, with or without IRS certification, from
claiming to be a tax-exempt charity. They may even be correct: Whether
a group _is_ exempt from Federal income tax, and whether donations to it
can be lawfully deducted as charitable contributions, is a question of
fact. Your group either qualifies or not, independent of whether you
have a determination letter.
Of course, taxpayers who make donations to uncertified groups do so at
their peril: If IRS challenges/disallows the deduction, the burden of
proof is on the taxpayer that his/her contribution _really was_ to a
qualifying charity.
Since the whole idea of claiming to be a charity is to assure potential
donors that "No, really: We're a charity. We're real. You can donate
money to us, deduct it on your IRS form 1040, and not get challenged",
going around claiming to be a tax-exempt charity but having to mumble
and turn red when asked if you've been granted 501(c)(3) recognition
sort of defeats the purpose of the exercise.
In fact, if any group were to be that rash, I'd hope they'd make sure
there's a _really_ prominent notice saying "Although we believe we're a
qualifying charity under US tax law, we have no IRS recognition of our
status, to date." Otherwise, people who donate and then end up looking
at an unfriendly Revenue Agent might become a tad annoyed.
> I know that Canadians can claim donations to American charities on
> their returns, for example. I don't know what the laws and/or
> treaties are in other countries but I'm guessing that American
> incorporation and possibly European incorporation would give the LDP
> sufficient status.
You know, instead of _guessing_, you _could_ ask someone who's worked as
a tax preparer. Like me, for example.
Back in the day, if a tax-practice customer said to me, "I've just
donated $100 to a European charity that has no 501(c)(3) determination
letter, so can I safely deduct it?", I'd probably say "no". As usual,
though, It Depends<tm>.
> Or we could just make ourselves adjunct to the FSF if we're looking
> for sponsors.
Just like that, eh? ;->
Why don't you secure their OK, and get back to us so the group can then
discuss the separate question of whether it wishes to put FSF in charge.
(If you think FSF can permit "adjuncts" whose policies it doesn't
control and still keep its own 501(c)(3) status, then you're dreaming.)
Meanwhile, is there any chance I can get a monetary bounty of some sort,
every time I spend twenty minutes explaining what's wrong with a bad
idea proposed by a computerist who knows nothing about business and tax
law? ;->
* http://www.law.cornell.edu/uscode/26/usc_sec_26_00000501----000-.html
