Ask HN: Tax deductible donations to individuals?
5 comments
You need to talk to competent tax counsel - specifically someone who works with nonprofits. You can't just use a 501(c)(3) for "gift laundering" - you could make a donation to a 501(c)(3) that did charitable things "in honor" of a particular needy person, but you can't direct that the contribution be passed through to a specific person.
Agreed. That is my next step. I know there will be restrictions and limitations.
Any recommended resources?
Any recommended resources?
If you're in/around the Bay Area, try Gene Takagi - http://www.attorneyfornonprofits.com/
Similar to Watsi? http://ycombinator.com/watsi.html
Similar, but focused on the people close to us. Our friends, neighbors, and coworkers.
I found myself in this situation last year when my Mom passed away and left no life insurance, no savings, and no assets. We had some that supported us in helping to pay for it to the tune of several thousand dollars. Sadly those donations of support weren't tax deductible.
There have been several people I know that have run into similar situations and setup online giving portals for people to donate to. I have given willingly to help those in need, but found the fees to be rather annoying.
I have this idea that I am working on that I would love your feedback on.
Imagine an online crowdfunding site where you can choose to help fund individuals in need. These can be your friends, neighbors, relatives or complete strangers whose story you connect with. The organization would be setup as a 501(c)3 organization so all contributions are fully tax deductible. Families receive 97% of all contributions. Organizational expenses would be covered by donations directly to the organization.
Some basic assumptions... * People care about helping people they know that are in need. * Individuals that give care about transparency and knowing how their donations are spent. * Legalities of course.
Would you find value in such an organization?