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Suppose I have some criminal legal issues but I also have a

 
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  • Answered by:Ely
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Customer Question

Suppose I have some criminal legal issues but I also have a desire to take donations for an unrelated cause.

I do not want my past to conflict with what I am currently campaigning for and was thinking of getting a caretaker for the donations so there will be no questions as to where the money is going. I do not want people to think that the money might be going to my own legal defense.

What options do I have and will they be costly?

 

Optional Information:
Country relating to Question: United States
State (if USA): Texas

Submitted: 308 days and 15 hours ago.
Category: Legal
Value: ¥2,249
Status: CLOSED
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Expert:  Ely replied 308 days and 15 hours ago.

Hello and thank you for the opportunity to assist you. There may be a slight delay between your follow ups and my replies as I am typing out my answer. Please remember that this is general information only, not legal advice, and no attorney-client relationship is formed.

Kudos on donations to a good cause. As for keeping your name out of it, this is not new. The government and private parties have been going toe to toe since the beginning of this country as to what is/can be seen from the money donated.

The easiest way is to contribute with a untraceable prepaid credit cards. Simple and clean.

Also, if your cause has a PAC (political action committee), then PACs generally do not disclose their funding and you can continue to the PAC, and then the PAC can contribute to the cause. Make sure to ask them if they voluntarily give information on donors anyhow.

These are the primary two ways to make anonymous contributions.

I hope this finds you well. Please click Reply to Expert to keep talking, or rate my answer when we are finished. Kindly rate my answer as one of the top three faces because this is how I get credit for my time with you. I work very hard to formulate an informative answer for you; please reciprocate my good faith. Otherwise, reply to chat more until we are finished and you are ready to rate. (You may always ask follow ups free after rating.)

Customer replied 308 days and 15 hours ago.

You have misread my question.


I do not want to DONATE.


I want to accept donations for my cause but I don't want the controversy that would come with the money coming directly to me.

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Expert:  Ely replied 308 days and 15 hours ago.

My sincere apologies.

So are you trying to set up a defense fund for your legal matter, but wish to have the option of people donating anonymously?

Customer replied 308 days and 14 hours ago.

No, I have a completely separate cause I want to champion. I don't want anyone to think the money might be used for my defense.


Sorry but, you really might want to read the initial question again.

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Expert:  Ely replied 308 days and 14 hours ago.

Okay, my apologies. Please forgive the confusion as obviously this is a unique situation.

The best way for you to do this is to set up a non-profit. Non-profit corporations are entities that work towards a charitable goal. The entity also files with the IRS, and generally keeps a list of donors and expenditures. That way, everything is open and anyone can verify what the money is being spent on.

The non-profit is known as an 501(c)(3), after the Internal Revenue Code that it is based on. You can begin a non-profit for your cause by:

(1) filing for a corporation with Texas:

http://www.sos.state.tx.us/corp/nonprofit_org.shtml

... and (2) sending off non-profit application to the IRS:

http://www.irs.gov/charities/article/0,,id=96109,00.html

Opening up a corporation costs about $300. Applying for 501(c)(3) is free. No one can accuse you of using the non-profit for your own interests since the non-profit keeps a record of who donates to it and what the money is spent on; and it is completely and totally different from you as a separate, legal entity.

Again, apologies for any misunderstandings.

I hope this finds you well. Please click Reply to Expert to keep talking, or rate my answer when we are finished. Kindly rate my answer as one of the top three faces because this is how I get credit for my time with you. I work very hard to formulate an informative answer for you; please reciprocate my good faith. Otherwise, reply to chat more until we are finished and you are ready to rate. (You may always ask follow ups free after rating.)

Customer replied 308 days and 14 hours ago.

As I understood it a 501(c)(3) is not really transparent though.


How can someone verify the charity and see how the money has been spent?



Accepted Answer

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Expert:  Ely replied 308 days and 14 hours ago.

Hello,

No, a 501(c)(3) is basically as transparent as they come. See here for the requirements of transparency:

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14712.pdf

A combination of filing the required documents as well as voluntary open records will generally keep your 501(c)(3) in the clear.

Alternatively, you may always have someone else begin/run the 501(c)(3), but essentially, it is the same thing.

You can also register your charity with GUIDESTAR for excellent transparency so others may scrutinize it at will:

http://www.guidestar.org/

I hope this finds you well. Please click Reply to Expert to keep talking, or rate my answer when we are finished. Kindly rate my answer as one of the top three faces because this is how I get credit for my time with you. I work very hard to formulate an informative answer for you; please reciprocate my good faith. Otherwise, reply to chat more until we are finished and you are ready to rate. (You may always ask follow ups free after rating.)

Expert TypeCounselor at Law
Category: Legal
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Answered: 7/9/2012

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