Charitable event:Tax implications?

It has to be done through an organized charity ___________________________________

-----> real address on hobokeni or hobokenx

Funds have to be received by an organization that qualifies as tax exempt under Internal Revenue Code §501(c)(3), usually meaning that it has been approved to receive tax deductible contributions by the IRS. If you do not have proper tax status, you could find a qualified organization whose exempt purpose is to help people in your friend's situation (in this type of case they'd be referred to as a "fiscal agent"). All contributions will be given to them, and they will turn around and help your friend. They will keep a fee to cover their own costs, generally between 5-10%. Stu

Nothing practical I can think of.

I don't see that as a problem, but I'd keep very good books. The organizer is arguably just serving as a collection point for gifts to the child.

I'd definitely check with the state's Attorney General's office. Think "Lucy & Ethel need money to go to Europe."

-- Phil Marti Clarksburg, MD

Making "charitable" donations for the benefit of an individual do not qualify as deductible under most circumstances. They may if the collection agency is a recognized charity (501c3) and the funds are disbursed on a need basis. For example, funds collected to help victims of a disaster (flood, fire, tornado, etc). Funds collected specifically for a single individual are merely nondeductible GIFTS.

Recipents of charitable donations or gifts do not pay income tax on such funds.

With some difficulty, if your intent is to turn a gift into a deductible donation.

I don't see anything wrong with people all coming together, even if someone organizes them, and just making free will gifts to this person. They would not be able to deduct the gifts, but is that important enough to go through the trouble and expense of forming a recognized charity?

-- ArtKamlet at a o l dot c o m Columbus OH K2PZH

My take on this is that if you know the identify of a certain individual for whom funds may be "channeled" via a qualified charity, then there's no deduction. And I'm pretty sure that when push came to shove, and upon audit IRS discovered the ruse, they would disallow the deduction and tend to want to poke around that particular charity who lent it's good name to such shenanigans. ChEAr$, Harlan Lunsford, EA n LA

If you find an official non-profit that has a proper exempt purpose, it is permissible to make a constribution with strings (e.g. to help a specific individual) if it is pursuant to the exempt purpose of the organization. And if the organization agrees, of course. Stu