Seeking Your Assistance In Disbursing Funds To Charity

Seeking Your Assistance In Disbursing Funds To Charity

Seeking Your Assistance In Disbursing Funds To Charity

In the current economy more and more scams come out of the woodwork in order to manipulate the average citizen out of their all too precious financial resources. Although their goals may seem lofty, their feet need to be on the ground when it comes to handling business. Therefore, all charities have to be a legally recognized organization and must operate within the letter of the law, inclusive of having a business license and articles of incorporation. This is not a gray area. All charities must have a legal identity in order to operate. So, be confident in requesting to see a charity's proof of appropriate business licenses and or published articles of incorporation. If they do not have adequate legal documentation, then this is a sign to walk away.

Spot the Illegal Charity

One of the benefits of charitable contributions is the tax writeoff they provide at the end of the year. All too citizens have given in good faith only to find out that the organization they contributed to does not have the legal tax status in order to make their contributions count at tax time. According to the IRS, in order for a taxpayer to be able to deduct their charitable contributions, a charity including religious organizations, must have the 501(c)(3) tax status. To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization "must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. "