Re: Tax Deductibility?
Jim Miller Sr. (JJMSR@AOL.COM)
Fri, 27 Oct 1995 10:40:21 -0400
In a message dated 95-10-27 08:36:27 EDT, you write:
>Boy Scouts of
>America is a nonprofit organization, therefore contributions made to BSA are
That is correct, however, the donation in the original post concerned
donations to a unit which is technically "owned" by the sponsoring
organization not by the BSA. I know this seems like "picking nits" but
according to "experts" in our council, the donation must be made to the BSA
through its' local arm - the council - not to "Troop 23456" to qualify for
deductability. According to National, deductability is a function of the
Chartered organization - church, school, etc.
The following is the compleate text of the official BSA statement on the
"Tax-Exempt Status of Units and Contributions to Units" from the Finance
Policy Manual, BSA:
BEGIN OCRed TEXT
Tax-Exempt Status of Units
and Contributions to Units
The basic issues regarding the tax-exempt status of Cub Scout packs, Boy
Scout troops, Explorer units, and even Tiger Cub groups or Cub Scout dens are
addressed in the basic concept of the charter process employed by the Boy
Scouts of America reduced to the simplest terms as follows:
1. The local council recommends that specific organizations receive a chart
from the national office based on specific requirements and guidelines.
2. These organizations vary from schools, religious organizations, civic
clubs, neighborhood groups, business, industry, and others; each with a
different tax status. While some may be tax-exempt under IRS Code section
501 (c)(3), others may not be tax-exempt.
Important: The tax-exempt status of the chartered organization determines t
tax-exempt status of their unitspack, troop, post, etc.
The national office (National Council) maintains the group exemption status
for the local incorporated Boy Scout councils and the local council trust
funds conforming to the Model Form Trust Agreement.
Annually, the employer identification numbers of the local council and local
council trust funds are forwarded to the Internal Revenue Service in order to
maintain the group exemption status of these designated subordinates
receiving a charter from the national office.
The chartered organizations with tax-exempt status maintain their status
independently from the National Council and local council. Their units'
tax-exempt status will be consistent with the tax-exempt status of the
Issues for Foundations, Corporations and Employee Time-Share Grant Programs
Most foundations, corporations, and their employee time-share grant programs
require applications for grants to provide:
Verification of 501(c)(3) status
Recent audited financial statements
List of board of directors
In addition, many of these corporate grant programs have limitations on the
types of organizations they will support. The following list of types of
organizations which do not qualify for grants are fairly common:
Religious or fraternal groups
Organizations primarily supported by tax dollars
Organizations which promote a hobby or are primarily of benefit only to
employee or an employee's family, etc.
A review of the chartered organizations in most local councils will reveal a
very large number ineligible to receive a grant or donation.
END OCRed TEXT
I believe that is very clear and should resolve the issue.
I'm just trying to help keep fellow scouters from being blamed if a donor
should be audited by the IRS and have a claimed deduction to a unit
disallowed. Hope this helps.
Terry Howerton Sakima Group, Inc. SCOUTER Magazine Kansas City