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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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I was contacted by a nationaly known company that does fund

Resolved Question:

I was contacted by a nationaly known company that does fund raising for non-profits. They were looking at raising funds for a private person to start a business venture in agriculture, it is not a non-profit. The funds would be sent to the fund raising company and then given to the seeking party, but you would not be an investor,basically a donor. So if I gave money for this and it is not for charity, how would this need to be structured to write off the funds I might give? and what taxes would the person receiving the funds have?
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.


Hi and welcome to Just Answer!

To be deductible as charitable contribution - the gift should be made to the charitable organization that is qualified to receive tax-deductible contributions.

You cannot deduct contributions to specific individuals or contributions to the charitable organization which benefits a specific individual - regardless how your contribution is structured.

In order to be deductible as charitable contribution - your gift should be made to the charitable organization without any conditions how the gift will be used.

The charitable organization may decide to give funds to give all or part of the money to any specific person. For that person – if that will be not a payment for services, but a gift – it is not a taxable income.

Let me know if you need any help or clarification.

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