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Old Feb 13th, 2008, 04:50 PM     #1
Gabe
 
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Default Need some creativity

Hi!

I have an interesting situation. May a parent contribute money to a non-profit helping the needy and the org. then go and give charity to the married children (living on their own) of the the donor/s.

I know it sounds like the parent is using the non-profit for a tax deduction, but the parent isn't legally obligated to their married children, so any help is charity. Charity as you know begins at home.

If this can't work with a parent-org-child setup, is there any way to make it work. i.e. parent-org1-org2-child, or parent-donor advised fund-org-child.

If the parent contributes $100 and the child only recieves part of the money, does it make a diference. If so what percentage is allowed.

Is there a legal way?

This issue has come to me and a solution would be helpful to some really needy people.

Thank you,

Gabe
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Old Feb 15th, 2008, 09:35 AM     #2
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Default Re: Need some creativity

to my (good) best knowledge, this is forbidden. Money that is given to charity can't be designated to a family member. A charity can't serve as a pass through for that.

In theory if you desginate scholarship donation to your university, they need to have a very clear set of critera for its distribution, if a family member applies for scholarship and he/she meet the critera and given one... this is ok, but it needs to be as objective as a process can be.

i hope this is helpful.

best
ET
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Old Feb 19th, 2008, 10:42 AM     #3
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Default Re: Need some creativity

You may want to consult with trust lawyers or others to see if something similar may be set up but I also don't see this through a nonprofit.
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Old Feb 20th, 2008, 12:59 AM     #4
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Thumbs Up Re: Need some creativity

Thanks for the answers.

I'm hoping someone could come up with a way to accomplish this.

There are some very interesting entities out there, as I have have found googling, for example:

http://www.npr.org/templates/story/s...toryId=5590281

Don't be shy, speak up!

Thanks in advance.
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