Scouts-L Mail Archive for December of 1999: Re: Deductibility of Contributions
Re: Deductibility of Contributions
Turba, Thomas N
Sun, 19 Dec 1999 19:30:10 -0500
>Second, the technical answer is very clear: contributions to a Cub pack
>NOT deductible, because they benefit individual scouts, not scouting. To
>benefit Scouting the contributions must be made to the Council or National.
Contributions made to individual units can be deducted as long as the
contributions abide by the rules set forth by the IRS for charitable
contributions. There is no IRS restriction that such contributions can only
be made at the Council or National level.
Contributions can be deductible even if they benefit individual Scouts as
long as the contributions abide by the IRS rules for such contributions.
Campership funds, found in many Councils, are a prime example of such a
deductible contribution that benefits individual Scouts. In general, the
key element to permitting such a contribution to be deductible is that the
contribution is made to a general fund and that there are no implicit (or
explicit) strings attached as to who the beneficiary shall be. This is
harder to show, and to do, at a unit level.
The primary cases I have seen where charitable contributions to units have
been disallowed as deductions is when the donor is a direct or indirect
beneficiary of what has been claimed to be a charitable contribution. An
example of this is when some or all of the "donation" covers expenses for a
son or daughter. This is one thing the IRS looks for when auditing a Scout
T. N. T.
Thomas N. (Tom) Turba