sm96

[jjshoe43@hotmail.com]

i am new to this forum. and have a question that i'm sure that has been discussed many times but::: we have a local couple that makes too much money per year and they donate to local charities for tax purposes and to help the community. they have become aquainted with our troop and would like to help out our troop financially and help with the boys going to summer camp. can i accept a donation to the troop and give them a receipt or do they have to donate to the council, in which case can they specify where the money is to be used?? i will check back for answers, thanks for any and all input.

[matuawarrior]

Yes, you can accept the donation.

 

If your Charter Organization is listed a 501© Non-profit,you can write them a receipt from your charter org. OR you can have your unit listed as a non-profit with your state. I would prefer the former to the latter because of complications and legal requirements per state.

 

OR if the couple just wants to donate funds to your unit without receiving a receipt than that's okay too. But most Business would use that as a tax write off.

 

Of Course, council may want the funds for FOS but then if the couple feels that they really want to help Your Scouts then why say NO.

 

Matua

[eisely]

I don't see any reason why they could not donate directly to the troop and take the deduction for the charitable donation. There has to be a precedent out there somewhere. Somebody who is a tax attorney could provide a more affirmative response.

[dsteele]

I'm not a tax attorney, nor do I play one on television. I am a professional scouter, so I may be able to provide some insight.

 

The couple can donate directly to the troop. Taking the tax deduction, however, is where the problem lies. The troop, unless it has filed and been approved as a 501 © (3) charitable organization is not a tax-deduction-maker for individuals recognized by the IRS. There's a similar thread asking how much money a troop could make on a fund-raiser and the answer is that there isn't a limit. This has to do with the non-profit status of the troop.

 

I like the first suggestion of having them make the charitable donation through the chartered organization, if it's a 501 © (3). If it isn't -- if it's a business, or American Legion, Kiwanis Club, etc., then the gift still isn't tax deductible. Most service clubs and veterans groups aren't 501 © (30's, but they may have attached foundations that are.

 

Of course, if the donation is made to the council, it would be deductible. However, I know I wouldn't want to have to administer a gift made to my council for one specific troop. Sooner or later, someone would accuse "council" of stealing the money or mis-directing it. Our accounting system isn't really set up for that.

 

It could be worth discussion with your Scout Executive, Assistant Scout Executive, or Finance Director. Perhaps they could work something out where the couple writes a check specifically for your unit account at the office, but that kind of thing is up to your local leadership.

 

I don't know if I've cleared the air or muddied it up. I hope my 2 cents helps.

 

DS

[mk9750]

Man 'O Steele,

 

Sounds to me like you've probably covered the bases. But your answer leads to a question of my own. Perhaps a tax attorney or CPA may want to try this one:

 

Every year, I take a deduction for my unreimbursed expenses for Scouting, like mileage, copies I make, etc. I am pretty certain I could take these deductions if the Troop were a formal non profit. But in that they are not, am I doing anything shady?

 

If anyone out there is the IRS, please ignore this post.

 

Mark

[dsteele]

Mark --

 

Since you've strung three initials together and invoked the name of an organization I only have something to do with once a year, I'll wait for the CPA answer, too.

 

For the record, (in case Mark's last line proves prophetic) I am brutally honest when I do my taxes each year and I'm sure our friend Mark does, too!

 

DS

[scoutldr]

I do the same thing...I make many checks out to "Boy Scout Troop XXX" during the year, and take the deduction, as long as it's a legitimate donation and not things that benefit me such as camp fees, popcorn, etc.

 

A Scout is Trustworthy. I don't cheat. If ever audited, I will show my receipts, explain what I did and why, and if the IRS chooses to disallow the deduction, I will pay the additional tax. That's a chance I'm willilng to take, as in the past when I have dealt with the IRS (over my Mother's estate), I have found them to be friendly, helpful, fellow Civil Servants. (no, I don't work for the IRS!)

 

My non-legal advice is "proceed until apprehended" but let the Scout Law be your guide. As long as their is no intent to defraud, I think it's OK.

[dsteele]

It's been several hours and no CPA has come forward. Please, if you're a CPA and wish to contradict my opinion, I guarantee I won't be offended.

 

Here's my take on the taking of deductions for voluntary stuff done in the name of Scouting. Mark, you said it in part of one of your sentences. You mentioned your work for Scouting. I'm paraphrasing, but I believe you were referring to your mileage/gas, copies, etc. You take these as deductibles, and from all I've been taught, you are correct to do so. There have been slight revisions in the tax code, but I think the interpretation is still that this is work for the Boy Scouts of America and is not a donation to a specific troop.

 

The IRS has made it clear that uniforms for volunteers are not a tax-deductible item. They're not required. They're deductible for professionals (within reason) because they are required for business use (they're a business deduction and not a volunteer deduction) and because we can't realistically wear them for daily wear. The Century 21 Real Estate guy/gal can take the deduction for the ugly brown jacket for the same reason.

 

My best advice to you that take voluntary deductions based on your volunteer work is to make sure that they're documented with receipts, mileage logs, etc. Be ready to make your case. Also, hope that the IRS agent got up on the right side of the bed and didn't start eating his sandwich from the wrong side. But if they did, appeal it!

 

BTW -- I think the IRS has gone a long way toward fixing it's image with the public over the last several years.

 

Just a point of trivia, however. Do you know how many "dependents," America's youth, disappeared in the mid-eighties when the IRS required social security numbers for dependents? . . .

 

Six million in one year! Poof. Gone. The source is USA Today sometime in April.

 

Maybe the IRS wasn't all that incorrect to be mis-trustful in the 80's. Or, as I would prefer to believe, there were a LOT of fake families, but few liars in the 80's.

 

I've been called naive before. Don't know why.

 

DS