Re: Car wash; Scout Sunday
Bruce E. Cobern (bec@PIPELINE.COM)
Mon, 10 Feb 1997 09:59:39 -0500
Thank you for the informative post. Let's see if I can address this
without turning this mailing list into a little version of
misc.taxes.moderated, which I also frequent. <g>
You are correct that the deductibility of charitable contributions comes
from section 170, with 170(c) dealing with qualified recipients. Section
501 deals with what types of organizations are themselves exempt from
federal taxation. The key point is that there are many more types of
organizations that are exempt from tax under 501 than are qualified
recipients under 170.
The primary category of qualified recipients under 170 mirrors the
definition of a 501(c)(3) organization, being religious, charitable,
scientific, literary, or educational purposes, etc. Clearly, a fraternal
organization is not included in this list. However, 170 also allows
deduction for contributions to a fraternal organization if they are to be
used exclusively for the purposes listed above. Thus, a fraternal
organization can have a charitable fund and you can make deductible
contributions to that fund, even though it is not a separate entity. I
would guess that, under that section, contributions to a unit sponsored by
a fraternal organization should be deductible.
I, personally, have always felt that ANY Scout unit should qualify to
receive charitable contributions regardless of the sponsor, because it,
itself, meets the "religious, charitable, etc." definition. However, I
have read so often here and elsewhere that the deductibility depends on
the sponsor that I was beginning to believe it. Thank you for providing
independent confirmation of the way I feel. Of course, as a practical
matter, I know of no revenue agent who has ever asked, when confronted
with a contribution to a Scout unit, who the sponsor was. Without meaning
to flame revenue agents, most of them are just not knowledgeable enough in
the BSA structure to understand the concept (the same is true for most of
the public) and most innately understand the "educational" nature of the
So, thank you for forcing me to the books and to be more explicit.
Bruce E. Cobern
> From: Ted Burton <email@example.com>
> To: Scouts-L Youth Group List <Scouts-L@tcu.edu>; Bruce E. Cobern
> Subject: Re: Car wash; Scout Sunday
> Date: Monday, February 10, 1997 9:10 AM
> At 12:55 -0500 2/9/97, Bruce E. Cobern wrote to Ted Burton
> >As far as the federal government is concerned, I believe you should be
> >the id number of your sponsor. Thus, your bank account should be using
> >church's federal identification number. Since you are sponsored by a
> >and state that the PTA has qualified as a charitable, (501)(c)(3),
> >organization, any contributions made to your pack (and there is nothing
> >illegal about opening a bank account in a name that is NOT the name of
> >LEGAL, SEPARATE entity) would be tax deductible, just as if they had
> >made to the PTA. If you were sponsored by a fraternal organization,
> >the Elks, this would not be the case, since contributions to the Elks
> >not tax deductible, I don't believe.
> Hello, Bruce. You will when you think about it recall that tax
> deductibility comes from Section 170 (c), not 503. Section 503 is the
> source of tax exemption for fraterna lorganizations, for that matter.
> is the source of tax deductibilty. Scouts get deductibility out of 170
> education. I am not sure whether PTA's work under 170 or 503.
> For whatever it is worth, I believe a unit can be an unincorporated
> association independent of the charter organization where the charter
> organization is a signature of convenience obtained by a unit looking
> sponsor, as opposed to an organization that decided to have a unit.
> 246 in McCall is chartered by/to the United States Forest Service, but
> are surely not regarded as a federal organization. The Lions had given
> signature for years, but was still not a stable organization and had
> basically said they'd sign if we promised never to see them again. The
> was happy for some PR and provides storage space for troop equipment.
> now co-sponsor us. In both cases the unit had come together before the
> sponsor knew about it.
> Have a great day!
> Thank you for listening.
> =-=-=-=-=-=- II <<<=-=<I=-=<<< II -=-=-=-=-=-=
> Tukarica Lodge 266, Chapter Adviser, Hemene Chapter
> Ore-Ida Council 106, D. Eagle Rep., Pack 246 CM, Troop 246 MC
> ------------ "a good ol' Fox too..." ------------
> Ted Burton Alappiechsu Wiechcheu, Wolf Who Talks Fast
> e- mailto:firstname.lastname@example.org This message composed with Eudora Pro
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Terry Howerton Sakima Group, Inc. SCOUTER Magazine Kansas City