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Hi,
A officer in my county has been injured in an car accident. His fellow officers are doing fund raising efforts for him and his family. An account has been set-up in his name at the local bank is it possible to make donations to this account tax deductible for donors?
If the fund has been set up as a 501(c)(3) organization then the amounts are tax deductible.
No - gifts to individuals can't be deducted. And you wouldn't be able to set the fund up as a 501(c)(3) because no funds from a 501(c)(3) can be directed to the benefit any designated individual.
What if the fund was setup as a trust for the officer's family?Quote:
Originally Posted by ebaines
I don't believe it would qualify as tax-exempt. This would actually be a foundation which would make grants to certain individuals. Foundations like this may be tax-exempt, but only if they comply with a whole bunch of IRS regulations - too many to list here, but if you go to the IRS web site there's lots of info on how to set up both charities and foundations.Quote:
Originally Posted by ScottGem
The key to a foundation making grants to individuals is that it the criteria must be non-discriminatory. So it may be OK to set up a Foundation that will provide scholarships for Police Officers and their families, but I don't think you can set one up that makes grants solely to a particular family. Now, perhaps a smart lawyer could figure out how to word the foundation's charter so that it passes the non-discriminatory test while still directing the money where it's intended - perhaps limiting grants to officers whose residence is in a certain town and who are wounded on the job between June and August 2007? But I suspect the IRS would see right through that ruse. Again, a smart lawyer would know a lot more about this than I.
How much are you "donating" that you will need to itemize it and deduct it?Quote:
Originally Posted by msratt
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