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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I have question about how to start myself a fund to donate

Customer Question

I have question about how to start myself a fund for people to donate money toward my college education. I also wanted to know if it is legal for me to ask business for donations and if they could get any kind of tax break for it
Submitted: 4 months ago.
Category: Tax
Customer: replied 4 months ago.
I am also curious if lawyers could help identify scholarship or aid available to me.
Expert:  Lev replied 4 months ago.

You may accept gifts from other persons or businesses - that is not an issue.

As long as that is a true gift (and not a compensation for services, etc) - the gift is NOT taxable income for you. Regardless of the amount. Regardless how you use the money.

That is correct - you may accept $1,000,000 as a gift - and will NOT report that amount on your tax return.

However - donors will NOT be able to deduct that gift on the tax return.

Only gifts to qualified charitable organizations are deductible.

Gifts to any specific person or gifts that benefit any specific person - are NOT deductible.


Customer: replied 4 months ago.
Thank you very much. As a follow up what if I made a charity that offered scholarships, and issued a scholarship to myself and others. I am asking just for very general questions to these answers I know they are complex 1. Is that legal? 2. How much does it cost to set up a charity? 3. What does it take to become a qualified charitable organization?
Expert:  Lev replied 4 months ago.

To register a charitable organization - that is absolutely legal.

But to use donated funds for your own benefits world be a violation for charitable status - that is illegal.

Customer: replied 4 months ago.
what makes funds that business donate to a charity that issues scholarships tax deductible? The fact that those funds are not predetermined for a specific person? I am not trying to sound sleazy by asking these questions I am just at a loss for how to pay for school. I have disabilities and other special circumstances that lead me to believe people would want to donate to my college education. I am just trying to see if there is a way to make that somehow tax deductible for them.
Expert:  Lev replied 4 months ago.

Gifts to any specific person or gifts that benefit any specific person - are NOT deductible.

Regardless if that person in needs and donations are reasonable.

That would be illegal to tell donors that their donations are deductible.

Otherwise - you may accept donations and may use them for your education

Customer: replied 4 months ago.
Gotcha. Okay well I don`t know how many questions I get with this thing but I guess Ill ask one more. Is it legal for me to go door to door asking businesses for donations? I understand they are NOT tax deductible.
Expert:  Lev replied 4 months ago.

That means - soliciting for donations - and regulated by your state laws.

"Solicit" or "solicitation" means any oral or written request, however communicated, whether directly or indirectly, for a contribution.

Expert:  Lev replied 4 months ago.

See T.C.A. §48-101-501(10).

Tennessee laws regulates professional solicitors.

For instance - any salaried officer or employee of a charitable organization that engages in the solicitation of contributions for compensation in any manner for more than one (1) charitable organization is deemed a professional solicitor.

But if you are not a professional solicitor - there is nothing illegal.


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