# Could I legally start a charity for the 'rich'?

**URL:** https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756
**Category:** Factual Questions
**Created:** [January 20, 2006, 1:05am UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756 "2006-01-20T01:05:49Z")
**Posts on this page:** 8
**Page:** 1

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### Author: ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)
#### Post date: [January 20, 2006, 1:05am UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/1 "2006-01-20T01:05:49Z")

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Due to rising energy cost, which include the cost of jet fuel. I was wondering if I could start a charitable organization to offset the cost of ‘JET A’ for private owners of airplanes by donations. I envision people dressed up in green suits ringing bells outside Wal$mart.

Can this be legally done? is there some income requirements that have to be met by the recipients?

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### Author: ![Mindfield](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mindfield/32/19759_2.png) [@Mindfield](https://boards.straightdope.com/u/Mindfield)
#### Post date: [January 20, 2006, 1:21am UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/2 "2006-01-20T01:21:15Z")

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I’ve no idea personally, but I can’t see why not, as long as you’re okay running a charity that perpetually operates at a net loss. 😃

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### Author: ![Goblin\_Shark\_Proboscis](https://avatars.discourse-cdn.com/v4/letter/g/f19dbf/32.png) [@Goblin\_Shark\_Proboscis](https://boards.straightdope.com/u/Goblin_Shark_Proboscis)
#### Post date: [January 20, 2006, 1:45am UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/3 "2006-01-20T01:45:21Z")

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> [@kanicbird](#):
>
> Due to rising energy cost, which include the cost of jet fuel. I was wondering if I could start a charitable organization to offset the cost of ‘JET A’ for private owners of airplanes by donations. I envision people dressed up in green suits ringing bells outside Wal$mart.
> 
> Can this be legally done? is there some income requirements that have to be met by the recipients?

You bet you can do this. But speaking as a person who has worked in nonprofits for five years, and currently for one of the most well-known relief agencies EVAR… if people don’t give enough for those who truly need it, then they won’t for those that don’t.

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### Author: ![Freddy\_the\_Pig](https://avatars.discourse-cdn.com/v4/letter/f/a587f6/32.png) [@Freddy\_the\_Pig](https://boards.straightdope.com/u/Freddy_the_Pig)
#### Post date: [January 20, 2006, 2:48pm UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/4 "2006-01-20T14:48:42Z")

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It’s a free country, and you’re welcome to solicit donations and make contributions to anyone you please. You can even do it on Wal-Mart property in the unlikely event that you get their permission.

By asking if you could do this as a “charitable organization”, however, you undoubtedly mean that you want your organization to be tax-exempt and for contributions to be tax-deductible for the donors. Your friends at the [Internal Revenue Service](http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html) are likely to take issue with that.

> [@](#):
>
> The organizations described in IRC Section 501©(3) are commonly referred to under the general heading of “charitable organizations.” Organizations described in IRC Section 501©(3) . . . are eligible to receive tax-deductible contributions in accordance with IRC Section 170.
> 
> The exempt purposes set forth in IRC Section 501©(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes **relief of the poor, the distressed, or the underprivileged** ; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening of neighborhood tensions; elimination of prejudice and discrimination; defense of human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

My bolding. Doesn’t sound like jet fuel for private plane owners will qualify.

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### Author: ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)
#### Post date: [January 20, 2006, 3:02pm UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/5 "2006-01-20T15:02:38Z")

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**Freddy the Pig** hit it. Nobody’s going to prohibit this, but getting your organization acknowledged as charitable in the sense of tax law, which means donations to you are deductable (which, practically, means a huge public subsidy), is a totally different thing, and the answer would most likely be no.

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### Author: ![shelbo](https://avatars.discourse-cdn.com/v4/letter/s/3d9bf3/32.png) [@shelbo](https://boards.straightdope.com/u/shelbo)
#### Post date: [January 20, 2006, 7:01pm UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/6 "2006-01-20T19:01:05Z")

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Based on what **Freddy the Pig** said, it seems that the charities for the rich are limited to the traditional ones – the Opera, the Philharmonic, the Museum and the University.

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### Author: ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)
#### Post date: [January 20, 2006, 7:11pm UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/7 "2006-01-20T19:11:37Z")

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> [@shelbo](#):
>
> Based on what **Freddy the Pig** said, it seems that the charities for the rich are limited to the traditional ones – the Opera, the Philharmonic, the Museum and the University.

As well as research into alternative sources of jet fuel.

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### Author: ![Crandolph](https://avatars.discourse-cdn.com/v4/letter/c/7cd45c/32.png) [@Crandolph](https://boards.straightdope.com/u/Crandolph)
#### Post date: [January 20, 2006, 8:21pm UTC](https://boards.straightdope.com/t/could-i-legally-start-a-charity-for-the-rich/340756/8 "2006-01-20T20:21:09Z")

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I think this is called “US Congress.”
