Re: [MLUG - DISCUSSION] [Politics] Restrictions on Charitable Organizations (Stupid ones)

["Christian M. Cepel" <EMAIL:PROTECTED>]

Shucks, I don't know what to believe now.  You are correct that it's 
very tricky.

In one of the links Shannon sent it makes it sound like they are legally 
bound to honor the memo line:
http://www.irs.gov/publications/p526/ar02.html#d0e491

Quote...Generally, you can deduct your contributions of money or 
property that you make to, or for the use of, a qualified organization. 
A gift or contribution is “for the use of” a qualified organization when 
it is held in a legally enforceable trust for the qualified organization 
or in a similar legal arrangement.

But I'm not sure if it means 1 qualified organization, or a collection 
by a qualified organization earmarked and given to another qualified 
organization.

Very confusing.

Jonathan King wrote:
> On 12/1/05, Christian M. Cepel <EMAIL:PROTECTED> wrote:
>
> > I perhaps am wrong.  This is how it was explained to me by two
> > dissimilar folks.  Their explanations matched exactly.  Further, they
> > were both saying it in reference to our church's finance manager and his
> > reluctance to allow the church perform in the gray area of the law.
> > Part of his reason for this is because he is an MU professor teaching
> > exactly these topics.
>
>
> The rules are usually very tricky, so I know a lot of non-profits and
> churches "play it safe".  In many cases, checks are supposed to go to
> the church or non-profit itself, with (to use your example) "Honduras
> orphans" on the memo line.  Now the church is perfectly free to follow
> the suggestion on the memo line or reject it, since it isn't legally
> binding.  Meanwhile, this doesn't necessarily end the potential grief,
> since there are some things non-profits and religious institutions are
> not allowed to do with their (tax-free) funds, and not all of those
> are completely obvious, either.
>
> jking
>
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--
  //Christian

Christian Marcus Cepel            | And the wrens have returned &
EMAIL:PROTECTED icq:12384980  | are nesting; In the hollow of
371 Crown Point, Columbia, MO     | that oak where his heart once
65203-2202 573.999.2370           | had been; And he lifts up his
Computer Support Specialist, Sr.  | arms in a blessing; For being
University of Missouri - Columbia | born again.    --Rich Mullins

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