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View Diary: Donations to 501(c)4's are not tax-deductible. Good. Why are those to 501(c)3's? (88 comments)

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  •  "But people won't donate..." (18+ / 0-)
    "Yes, I understand both of your points.  But people won't donate to charity without the charitable deduction," you might respond.  To believe so is to have very little faith in human beings.
    I'll counter that to believe otherwise is to have very little experience in non-profit fundraising.  I've worked closely with a state-level 501(c)(4) organization which subsequently set up a 501(c)(3) foundation.  It's not that people won't donate to the (c)(4) org, but it's a hell of a lot easier getting donations for the (c)(3), especially if you're looking for large (four figures or better) donations.
    •  This (8+ / 0-)

      Tax planning is probably the biggest source of our funding as a 501(c)(3). The most important fundraising season is Oct, Nov and Dec. Why? Because people who will benefit from that deduction on their tax filing at years end will have a pretty good idea of what that year's liability will be and donate accordingly.

      We're grateful to the hundreds of people who donate small amounts but unless a charity has a really aggressive direct mail or telemarketing program (which are problematic for a multitude of reasons) it's the larger donations, the 4 and 5 figure ones, that are the heart of a charity's financial planning.

      47 is the new 51!

      by nickrud on Sun May 19, 2013 at 12:36:48 PM PDT

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    •  You expect logical behavior? (2+ / 0-)
      Recommended by:
      Flying Goat, Alice in Florida

      I've worked with charitable (dog rescue) activities for many years.  IME many (most?) potential contributors, however small their disposable income, carefully allocate their donations only to tax-deductible charities, because "that's what you're supposed to do" Besides, if the IRS says it's a charitable organization that means it's ok/safe to give to it (also not true, of course). So even tiny donors who don't itemize or even file look for the 501(c)(3) stamp of approval, and collect those tax-deduction slips!  

      "THERE IS NO JUSTICE. THERE IS JUST US." spoken by DEATH in Terry Pratchett's Discworld books.

      by Sailorben on Sun May 19, 2013 at 04:19:18 PM PDT

      [ Parent ]

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