Ask Experts Questions for FREE Help !
Ask
    msratt's Avatar
    msratt Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 27, 2007, 07:48 AM
    How to make a donations tax deductible
    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?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Aug 27, 2007, 08:00 AM
    If the fund has been set up as a 501(c)(3) organization then the amounts are tax deductible.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Aug 27, 2007, 11:52 AM
    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.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #4

    Aug 27, 2007, 03:40 PM
    Quote Originally Posted by ebaines
    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?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #5

    Aug 28, 2007, 06:52 AM
    Quote Originally Posted by ScottGem
    What if the fund was setup as a trust for the officer's family?
    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.

    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.
    CaptainRich's Avatar
    CaptainRich Posts: 4,492, Reputation: 537
    Cars & Trucks Expert
    		  
    #6

    Aug 28, 2007, 07:11 AM
    Quote Originally Posted by msratt
    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?
    How much are you "donating" that you will need to itemize it and deduct it?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Renting an apartment tax deductible? [ 2 Answers ]

I am taking a job that is over 100 miles from my home (where my wife and 2 kids live). I don't want to relocate, or displace them from a great school district. To take this job, which is not commutable distance, I plan to rent an apartment close to work for the week, and commute between that...

Tax deductible amount in CA [ 1 Answers ]

I work in CA and my annual salary is 85K, how much tax I have to pay on it. Or what will be take home amount? My dependents are my wife and one child.

Sdi tax deductible? [ 1 Answers ]

Is nys sdi tax tax deductible on my federal return? On the instructions for schedule A it states that any mandatory payments to the non occupation disability benefit fund in NYS is deductible. Is SDI & this fund the same thing?

Tax deductible? [ 1 Answers ]

Are personal items that were appraised and taken to a dealer for sale with the money going to the trustee to dispurse tax deuctible.

View more questions Search