Our organization is purchasing a piece of equipment from an Individual. Since the price is well below the value of the equipment, they have requested a charitable tax donation write off. We are not a 501C-3 and cold not provide this. Another organization, tied very closely to our, has agreed to give this person a charitable write off receipt for the additional value of the equipment. Is this legal to do?

Probably not. For the other company to give a tax deduction then turn around and give the equipment to your company would probably be considered tax fraud

No, since the equipment is not being given to the other organization.

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Originally Posted by ScottGem

Probably not. For the other company to give a tax deduction then turn around and give the equipment to your company would probably be considered tax fraud

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Thank you for your reply.
I'm not too good at explaining things so, let me try again. Our organization is wanting to purchase an piece of equipment valued at $6,000.00 for $3,000.00 cash. The owner of the equipment agreed to sell it to us for $3,000.00 and a tax write off receipt for the difference of $3,000.00. We are not a 501(c)(3) but, a 501(c)(4). Another organization that is a 501(c)(3) and performs the same work we do has agreed to give this person the tax receipt. I hope that makes sense.

Doesn't seem to change the deal. But lets say, the other company purchases it for $3000 plus the writeoff. Then you you purchase it from the other company for, lets say $3100. That might fly since the other company purchased the equipment for the purposes of getting a return.

That would still be pretty iffy and I would run it by a tax attorney first.