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

[Stephen Montgomery-Smith <EMAIL:PROTECTED>]

Publication 526 is what the IRS expects tax payers to be reading when 
they are puzzling over what to put into Schedule A.  So I would expect 
it to be reasonably accurate.


Christian M. Cepel wrote:
> 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
> >
> > _______________________________________________
> > discussion mailing list
> > EMAIL:PROTECTED
> > http://mlug.missouri.edu/mailman/listinfo/discussion


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