My name is Beverly Johnston my son's friend was riding his dirtbike on our property and fell and broke his neck and now is unable to move from the neck down. The family hasn't any money and the Mother had to quit her job to care for him..
I want to help by raising funds for them and would like to know if it is legal to do so?
Do I need to do anything or can we just collect for them and give the money directly to the family?
Please let me know what I should do to help.
Bev

Hello Bev:

As long as the contributors KNOW that their donations are NOT tax deductable, then you don't need to worry about the feds... And, as long as this is the ONLY activity of your group, then I don't think you need to worry about local authorities either...

Having said that, I'd run it by a CPA first.. He'll know EXACTLY how to handle it... Besides, he'll be able to set up a TRUST for the boy. It'll be EASIER to get donations if the donor KNOWS his money is going for the boy and NOT his parents.

excon

Yes. Getting people to donate money for him is OK, but they should realize it's not tax-deductible unless the donations are made to a 501 (c) (3) charitable organization.

Strictly speaking, if you (personally, instead of a charitable organization) raise money by selling goods and services, I believe that income would be taxible to you. And, as I said, you couldn't deduct it as a donation, unless you had 501 (c) (3) status.

And I don't think you can get 501 (c) (3) status if the organization is to benefit only one person, as opposed to a class of beneficiaries.

So your best bet would be to find an existing charity which would be willing to help the boy and his mother.

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Originally Posted by BevJohnston

My name is Beverly Johnston my son's friend was riding his dirtbike on our property and fell and broke his neck and now is unable to move from the neck down. The family hasn't any money and the Mother had to quit her job to care for him ..
I want to help by raising funds for them and would like to know if it is legal to do so?
Do I need to do anything or can we just collect for them and give the money directly to the family?
Please let me know what I should do to help.
Bev

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Is there a lawsuit? Yes, it matters in NY.

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Originally Posted by JudyKayTee

Is there a lawsuit? Yes, it matters in NY.

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Really? You mean a personal injury suit?

It's more of a protect yourself situation than anything else. There was a fund raiser in Rochester (NY), raised a lot of money for victim of motor vehicle accident. When it settled for a lot of money people who contributed (and were probably sick of reading about the settlement) wanted their contribution back. I know, how petty can you get. Anyway, I'll see if I can find it. There were letters to the editor and then someone went so far as to file in Small Claims stating they were "misled" about the financial condition of the parties.

Of course, someone will always having something to say but I am seeing these events in my area now with the disclaimer that there may be financial recovery from another source.

Sounds stupid and petty but...

I'll see if I can find it. Of course, anyone can file in Small Claims.