[Finance] Rent as a charitable donation

[Jeff Cotten]

Unfortunately the money you pay to the YMCA for membership and subsequent
access to the facilities isn't tax deductible.  But because the institution
is a charity, any donations to them that are not tied to your membership
(maintaining the facilities) would be tax deductible.

In hackerspace terms, if you were a 501c3 and charged membership dues, the
dues would not be deductible.
But any donation to upgrade the facility would be eligible as a tax
deduction.




On Tue, Mar 8, 2011 at 12:10 PM, Lokkju Brennr <lokkju at gmail.com> wrote:

> My understanding is that phrase has a some very specific meanings.
> Otherwise, it seems overly broad...  just as an example, if I expect
> to ever use the swimming pool at a YMCA, does that mean I can make a
> (tax-deductible) contribution towards pool repair?
>
> Loki
>
> On Tue, Mar 8, 2011 at 10:02 AM, Jeff Cotten <omegix at gmail.com> wrote:
> >
> > MrFranceIsBacon found this on page 6 of the same IRS document
> > http://www.irs.gov/pub/irs-pdf/p526.pdf
> >
> > "Contributions you cannot Deduct
> > [...]
> > 3. The part of a contribution from which you receive or expect to receive
> a
> > benefit"
> >
> > It sounds like that prevents the landlord from donating the amount you'll
> be
> > paying to him.
> >
> > Omegix
> >
> >
> >
> > On Tue, Mar 8, 2011 at 10:52 AM, Lokkju Brennr <lokkju at gmail.com> wrote:
> >>
> >> Right - but your landlord can legally make a cash donation to the
> >> charity for the rent amount each month, that you pay back to them as
> >> rent, as long as money actually changes hands, correct?  i.e., they
> >> write you a check for tax-deductible contribution of $1000, you write
> >> them a check for rent of $1000, etc - or is your landlord prevented
> >> from making tax-deductible contributions?
> >>
> >> Loki
> >>
> >> On Tue, Mar 8, 2011 at 8:39 AM, Jeff Cotten <omegix at gmail.com> wrote:
> >> >
> >> >
> >> > Synopsis:  Rent is not a tax-deductible benefit when donated to a
> 501c3
> >> > charity.
> >> >
> >> > Thank you to MrFranceIsBacon from Makers Local 256 who brought this to
> >> > our
> >> > attention.
> >> > One of the ideas that Makers Local (Huntsville, AL) had when we
> started
> >> > was
> >> > to attain 501c3 charity status,
> >> > and then convince local building owners to let us set up there
> >> > rent-free,
> >> > while they wrote the Fair Market Value (FMV) off
> >> > as a charitable donation on their taxes.
> >> >
> >> > There are tax laws preventing this, it is considered Partial Interest
> in
> >> > Property.
> >> >
> >> > Ref:  Page 9, Example 1:  http://www.irs.gov/pub/irs-pdf/p526.pdf
> >> >
> >> >
> >> > I've added an entry on the wiki about this here:
> >> > http://hackerspaces.org/wiki/Finances#Tax_Laws
> >> >
> >> >
> >> > Omegix
> >> > Makers Local 256
> >> >
> >> >
> >> > _______________________________________________
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> >> > Finance at lists.hackerspaces.org
> >> > http://lists.hackerspaces.org/mailman/listinfo/finance
> >> >
> >> >
> >
> >
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> >
> >
>
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