# Charity? \[Tax question\]

**URL:** https://boards.straightdope.com/t/charity-tax-question/509214
**Category:** Factual Questions
**Created:** [September 7, 2009, 11:03pm UTC](https://boards.straightdope.com/t/charity-tax-question/509214 "2009-09-07T23:03:17Z")
**Posts on this page:** 6
**Page:** 2

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### Author: ![Raza](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/raza/32/213_2.png) [@Raza](https://boards.straightdope.com/u/Raza)
#### Post date: [September 9, 2009, 4:02pm UTC](https://boards.straightdope.com/t/charity-tax-question/509214/21 "2009-09-09T16:02:17Z")

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When I’m involved, confusion is always a possibility. However, the IRS rules on forming 501©(3) organizations specifically say that the organization itself cannot be formed for the purpose of benefitting an individual or specific group of individuals (such as a family).

Related (and in line with my cites) is that an otherwise-properly-formed 501©(3) cannot say “hey! donate $20 and we’ll spend it on Joe’s cancer treatment” and have that contribution be tax-deductible.

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### Author: ![legalsnugs](https://avatars.discourse-cdn.com/v4/letter/l/45deac/32.png) [@legalsnugs](https://boards.straightdope.com/u/legalsnugs)
#### Post date: [September 9, 2009, 4:54pm UTC](https://boards.straightdope.com/t/charity-tax-question/509214/22 "2009-09-09T16:54:25Z")

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> [@Raza](#):
>
> When I’m involved, confusion is always a possibility. However, the IRS rules on forming 501(c)(3) organizations specifically say that the organization itself cannot be formed for the purpose of benefitting an individual or specific group of individuals (such as a family).
> 
> Related (and in line with my cites) is that an otherwise-properly-formed 501(c)(3) cannot say “hey! donate $20 and we’ll spend it on Joe’s cancer treatment” and have that contribution be tax-deductible.

If the 501(c)(3) charity cannot be formed to specifically benefit Joe, then of course you could not say “give to Joe through the charity and it’s tax deductible.” You can say “give to the charity and we will assist poor people who are having cancer treatments,” and Joe can be one of your recipients and \*\*\*that \*\*\*contribution would be tax deductible.

I used to work at a 501(c)(3) college and rich relatives were always trying to fund their niece’s education, but they wanted a tax deduction for it. We would have been happy to take the contributed funds for a scholarship, but had to tell them that there was no tax deduction if the donor specifies the recipient. Nope, it’s a gift, just not a tax deductible gift.

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### Author: ![TickledToDeath](https://avatars.discourse-cdn.com/v4/letter/t/e56c9b/32.png) [@TickledToDeath](https://boards.straightdope.com/u/TickledToDeath)
#### Post date: [September 9, 2009, 10:58pm UTC](https://boards.straightdope.com/t/charity-tax-question/509214/23 "2009-09-09T22:58:28Z")

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> [@dracoi](#):
>
> Well, we all know those Hasidic Jews are primarily motivated by the need to save a buck or two. No chance there are serious religious beliefs that might justify the position. 🙂
> 
> Seriously, this is what audits are for, and if you want to crack down on rampant abuse of the tax code, home churches are not the target. Something like $20 billion dollars are unlawfully claimed through the Earned Income Tax Credit. And around ten times that is the estimated amount of self-employment income that goes unreported.

Oh I fully understand and know there are bigger fish to fry but it just gets me riled knowing my school taxes and property taxes are so high and I don’t even have kids in this school district( but that is another issue) and they are living free counting the money they are saving. As for those $20 billion unlawfully claimed etc etc. again that is also another issue parallel to the one at hand.

TTD

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### Author: ![Raza](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/raza/32/213_2.png) [@Raza](https://boards.straightdope.com/u/Raza)
#### Post date: [September 10, 2009, 6:01pm UTC](https://boards.straightdope.com/t/charity-tax-question/509214/24 "2009-09-10T18:01:05Z")

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> [@legalsnugs](#):
>
> If the 501(c)(3) charity cannot be formed to specifically benefit Joe, then of course you could not say “give to Joe through the charity and it’s tax deductible.” You can say “give to the charity and we will assist poor people who are having cancer treatments,” and Joe can be one of your recipients and that contribution would be tax deductible.

We agree. This is an issue that comes up a lot (both from contributors and potential recipients), and we have to dance carefully.

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### Author: ![muttrox](https://avatars.discourse-cdn.com/v4/letter/m/a8b319/32.png) [@muttrox](https://boards.straightdope.com/u/muttrox)
#### Post date: [September 10, 2009, 8:13pm UTC](https://boards.straightdope.com/t/charity-tax-question/509214/25 "2009-09-10T20:13:12Z")

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> [@TickledToDeath](#):
>
> No they are not all Rabbis either yet they say their HOME/ HOUSE is a place of worship and get away with it.

Perhaps you do not fully understand the role of the Rabbi in Judaism. You do not need one to have a ceremony “count”.

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### Author: ![Munch](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/munch/32/5281_2.png) [@Munch](https://boards.straightdope.com/u/Munch)
#### Post date: [September 10, 2009, 8:38pm UTC](https://boards.straightdope.com/t/charity-tax-question/509214/26 "2009-09-10T20:38:14Z")

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> [@muttrox](#):
>
> Perhaps you do not fully understand the role of the Rabbi in Judaism. You do not need one to have a ceremony “count”.

Nor the role of a Rectory for parish priests (Catholicism).

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