Re: Tax Questions
Robert Caron (robert.caron@UMB.EDU)
Wed, 23 Sep 1998 16:19:48 -0400
Here is what I understand to be the case.
Storms, Randy wrote:
> Two tax questions:
> 1. Are donations made to an individual scout unit deductable?
An individual scout unit (Troop, Pack) is not a legal entity unto itself but
is "owned" by its chartered organization. Therefore, donations are actually
being made to that organization (even though the check might be made out to
Troop xxx). As such, if donations to the organization are deductible (i.e.,
it is a church or other not-for-profit organization for which the IRS
regulation says donations are deductible), donations to the scout unit are
deductible. If large donations are made for which the donor requires a
receipt, the chartered organization's name and Taxpayer ID Number (TIN, EIN)
should be provided on the receipt. Such organizations are often referred to
> 2. If so, can a Charter Organization take a deduction for donations made to
> it's own unit? I wonder because they are would essentially be giving money
> to themselves...
This question implies the opposite of answer 1 above. If a chartered
organization is one that must pay taxes and therefore could benefit from
charitable deductions, it would not itself be a charitable organization and
donations to it would not be deductible. If that organization were the true
charter-holder, it could not "give money to itself" in the sense that it would
become a charitable deduction. I suppose an organization could set up a
charitable subsidiary, like a foundation, as a separate legal entity to hold
the charter and operate the unit, but I suspect this is rare and probably not
worth the expense.
Can any of the lawyers/accountants on the list verify/correct this?
Troop Committee Secretary, Northborough Troop 101
Brotherhood, Chippanyonk Lodge #59, OA
Knox Trail Council #244, BSA
Terry Howerton Sakima Group, Inc. SCOUTER Magazine Kansas City