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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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  •  A homeless shelter is unlikely to show any profit, (0+ / 0-)

    of course. Unless it's being run as a scam.
    But what is your point? If the shelter does not make a profit, it's not going to pay corporate income taxes. Why make the shelter jump through the hoops of proving it's qualified to be a qualified social-welfare organization; why have the IRS spend money to make that determination?

    "There is just one way to save yourself, and that's to get together and work and fight for everybody." ---Woody Guthrie (quoted by Jim Hightower in The Progressive Populist April 1, 2012, p3)

    by CitizenJoe on Mon May 20, 2013 at 06:01:06 AM PDT

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    •  They might have cash on hand (1+ / 0-)
      Recommended by:
      LakeSuperior

      as reserves. Tax exempt status without deductibility gives you the freedom to manage your money without worrying about the artificial boundaries of the tax year.

      It also encourages a group of people to incorporate into a formal structure, rather than just give their money ad hoc, which they can do without a second round of taxation.

      Fry, don't be a hero! It's not covered by our health plan!

      by elfling on Mon May 20, 2013 at 08:16:21 AM PDT

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      •  Good point about the reserves-- (0+ / 0-)

        --and reserves can be held now (as with homeowners' associations) and not be treated as profit.
        Joe

        "There is just one way to save yourself, and that's to get together and work and fight for everybody." ---Woody Guthrie (quoted by Jim Hightower in The Progressive Populist April 1, 2012, p3)

        by CitizenJoe on Tue May 21, 2013 at 06:31:49 AM PDT

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