Case Study 3
This case is somewhat more complex than the two preceding, in that a great deal of variation in the tax implications exists depending on the type/purpose of the charitable organization and its plans for the property. If a house on Cape Cod somehow suited the tex-exmpt purpose of the charitable organization (e.g. It was used as a hospice for sick children that the organization cared for), then the amount of the deduction Mr. Kennedy could claim would be equal to the fair market value of the house, less the mortgage, or $700,000 (Hopkins 2005, pp. 136).
If, as is more likely, the donation cannot be used by the organization directly for its charitable purposes, there must be a long-term capital gains deduction for the amount of appreciation of the cottage. Mr. Kennedy's deduction would therefore be $350,000, or the amount he had actually paid for the house ($400,000 less the $50,000 still remaining on the mortgage). This is true whether the charitable organization uses the property to generate long-term income or sells it soon after receiving the donation (Hopins 2005; pp. 136). The proper response in this situation would be to advise Mr. Kennedy to consult his accountant/tax attorney; he might be far better off selling the property and making a cash donation...
This generous act not only saves the taxpayer some extra cash come April, but it also helps a number of charities across the country. Charities can either use donated vehicles for their own use or they can auction them off in order to use the cash to help those in need. Either way, the charity is getting great use out of the old bucket which was just a nuisance
Charity/Foundations AngliCORD Board of Directors John Doe, CEO Recent Article in BRW concerning Charity Accountability This memo aims to address a recent and rather disturbing article in the March 24-30, 2005, Australian Business Review Weekly entitled "Charity Inc." I rather suggest that each of you obtain a copy and read it so as to get the full effect of what I am about to address. As I am sure you are all very well
Q1. Why is a budget important for a nonprofit institution? Even if an institution is a charitable nonprofit, it must still adhere to a budget. Nonprofits must be accountable to donors and shareholders for the ways in which they spend their funds. Additionally, although nonprofits are not run for the purpose of making a profit, this does not mean that they can be spendthrift and sink into insolvency. Like all institutions,
Where the charities were directly or indirectly involved in, through their officers in other ventures, the tax debts of such entities were estimated to be $15 million in additional tax debts, mostly payroll taxes. (United States Government Accountability Office, 2007) There were instances where in spite of findings that the exempted entity was abusing the federal tax system, these organizations continued to have the exempt status. (United States Government Accountability
Securities Regulation SECURITIES REGULARIZATIONS IN NON-PROFIT ORGANIZATIONS The ensuring of the fact that an organization is working as per regulations and is following the code of conduct, while keeping the interest of the public first, are matters which are becoming more and more complicated with the passage of time. Therefore, it can be said with some emphasis, that today one of the most basic issues of many organizations is the issue of
GuideStar and the recommended project. GuideStar's Background and Mission Mission statement, history, and leaders. GuideStar's Fiscal Information Annual budget, costs, and fiscal year. GuideStar's Recommended Project Recommended project -- add international non-profit data. How to Implement the Project Some steps to take to begin the project. GuideStar's Increased Budget How the project would impact GuideStar's budget. The Ongoing Project How to maintain the project. GuideStar The purpose of this paper is to introduce, discuss, and analyze the non-profit organization GuideStar. Specifically it will
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