View Single Post
Old 12-26-2008, 12:50 AM   #59
jefelump
Member
 
Join Date: Dec 2007
Location: Texas
Posts: 552
jefelump is a name known to alljefelump is a name known to alljefelump is a name known to alljefelump is a name known to alljefelump is a name known to alljefelump is a name known to alljefelump is a name known to alljefelump is a name known to alljefelump is a name known to all
Default

Quote:
Originally Posted by chumdawg View Post
It would take a lot of nerve to deduct church donations from your taxes.
It takes no nerve at all. It's perfectly legal, and widely done (and accepted).

Wikipedia
Quote:
Under IRS's IRC Section 170, individuals giving to 501(c)(3) organizations that are either public charities, private operating foundations, and certain private foundations may deduct contributions representing up to 50% of the donor's adjusted gross income if the individual itemizes on his/her tax returns. Individuals giving to 501(c)(3) organizations that are private foundations may generally deduct contributions representing up to 30% of their adjusted gross income. Corporations may deduct all contributions to 501(c)(3) organizations (regardless of foundation status) up to an amount normally equal to 10% of their taxable income.

501(c)(3) status for charities and the related section 170 deduction for donors are important to many charitable groups. Some individuals and groups (and virtually all foundations) will not give to a charity if it does not have 501(c)(3) status (as no tax deduction would be allowed). Therefore, loss of this status can be harmful (if not fatal) to a charity's existence.

Obtaining status

Some organizations automatically acquire 501(c)(3) status upon filing of proper organizational documents (e.g., articles of incorporation as a church), at least until annual income exceeds a statutory threshold. Others will not receive 501(c)(3) status until they file an application and supporting documentation to the IRS and have a certification letter issued. The 501(c)3 application must be accompanied by a $300 application fee if annual income for 1st 4 years is $10,000 or less ($750 if annual income is more than that). [6]The IRS will examine the application and may require further financial and organization information prior to granting the 501(c)(3) status. To cover donations made before the letter is issued, the regulations require prompt filing of the application after organization, or after an existing organization satisfies the criteria for 501(c)(3), or after exceeding the income threshold.
Even though Mavdog claimed 501c was irrelevant earlier, the above is from the tax code. I took it from Wikipedia, only because it was easier to find.

The bolded indicates contributions to 501c3's is tax deductible, and it also says churches are 501c3's. So the IRS grants churches the same standing as other charities. I wonder why that is....
__________________
"In politics, there are some candidates who use change to promote their careers, and then there are those who use their careers to promote change."
-Gov. Sarah Palin, 09/03/2008

"Suppose you were an idiot. And suppose you were a member of Congress.. But I repeat myself."
-Mark Twain

'Outside of the killings, Washington has one of the lowest crime rates in the country,'
--Mayor Marion Barry, Washington , DC .
jefelump is offline   Reply With Quote