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501(c)(3) Pass-through

Discuss anything to do with property law - buying, selling property

501(c)(3) Pass-through

Postby marlan43 » Sun Nov 20, 2016 5:05 am

Can a 501(c)(3) non-profit charity accept funds for another cause that does not have non-profit charity status?  This would be so the donors can deduct as a  tax deductible charity and the 501(c)(3)issue the check for the other cause?
marlan43
 
Posts: 41
Joined: Sat Apr 02, 2011 2:34 am

501(c)(3) Pass-through

Postby Jakob » Thu Nov 24, 2016 11:29 pm

No. From page 8 of www.irs.gov/pub/irs-wd/0530016.pdf

is

---Start of Excerpt--

The Taxpayer [501(c)(3) organization] must ensure that it

maintains its discretion and control over all contributions.

Accordingly, the Taxpayer may endeavor to honor donors' wishes

that designate the use of donated funds.  The Taxpayer, though,

must maintain control over the ultimate determination of how all

donated funds are allocated.  Donors should be made aware that,

although Taxpayer will make every effort to honor their

contribution designation, contributions become the property of

Taxpayer, and the Taxpayer has the discretion to determine how

best to use all contributions to carry out the it's functions and

purposes.

---End of Excerpt--

Also see page 2 of the article in a 2001 issue of "Foundation

News and Commentary" by Attorney Jane C. Nober, who was, at that

time  special counsel at the Council on Foundations.

---Start of Excerpt--

Although there are a few exceptions, generally, contributions to

non-501(c)(3) organizations are not eligible for charitable

income tax deductions. As a result, community foundations must be

quite cautious about accepting donations for charitable projects

that are run by non-501(c)(3) groups. Donors who wish to support

the efforts of a non-charity through the community foundation may

be seeking indirectly to secure the charitable income tax

deduction that they cannot secure with a direct contribution. A

community foundation may not establish a designated fund for a

non-charity.

---End of Excerpt--

www.arcf.org/FileDownload.cfm?file=Legal_Brief.pdf

The point is that a simple pass-through is not allowed. Harvey Mechanic, Attorney at Law - Ha[email protected]  
Jakob
 
Posts: 54
Joined: Thu Jan 02, 2014 5:54 am

501(c)(3) Pass-through

Postby Essien » Sat Dec 03, 2016 11:54 am

Can a 501(c)(3) non-profit charity accept funds for another cause that does not have non-profit charity status?  This would be so the donors can deduct as a  tax deductible charity and the 501(c)(3)issue the check for the other cause?
Essien
 
Posts: 38
Joined: Wed Jan 08, 2014 4:39 am


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