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> However it is not a public charity, which is a sub classification that comes with stricter rules and higher donation tax write-off limits. It sounds like you
by nulbyte 3y ago
> However it is not a public charity, which is a sub classification that comes with stricter rules and higher donation tax write-off limits.
It sounds like you mean public charities have stricter rules. I find the opposite to be true. There are additional rules and reporting requirements that apply only to private foundations because of the limited funding and tight control of such organizations by a close-knit group of people.
- shkkmo 3y agoPrivate foundation is the default status for a 501(c)(3), you have to do extra work to qualify as a public non-profit. > https://www.irs.gov/charities-non-profits/eo-operational-requirements-private-foundations-and-public-charities https://www.irs.gov/charities-non-profits/eo-operational-req... The rules are different, so which you view as more restrictive dependa on your perspective. In this case, the context is discussion of this claim: > I thought the tax-benefits of a non-profit were supposed to be tied to some governance requirements and operating in pursuit of some mission other than profit Thr greater tax benefits of public charities are indeed tied to governance requirements (specifically rules that restrict the board makeup of public charities) and mission alignment.
- AlbertCory 3y agothanks. What are these "greater tax benefits of public charities"? They both qualify for deduction of contributions.
- AlbertCory 3y agoI could look this up if I were inclined. I imagine, though, that a public charity is eligible to receive government grants or contracts.
- alexarnesen 3y agoContributions to charities can reduce taxable income up to 50% (of amount) for the donor. For foundations this figure maxes out at 30%.