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    Setting up a benefit

    I just had someone stop in and ask about setting up a benefit for their grandson for medical expenses. Do we have to file for a 501c? Will the bank require an EIN and proof? Or can they just set up an account without anything? Not sure how this works.
    thanks for any input.

    Andrea

    #2
    Just tell them to go talk to the bank where the deposits will be made. These are generally non-deductible personal gifts from individuals for the benefit of person in need.

    Specific assistance to individuals is not deductible as a charitable contribution.

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      #3
      Thank you.

      Comment


        #4
        Since medical expenses are deductible as an itemized deduction, there could be a tax benefit for someone in that family. If the grandson is a dependent of the g'parents, they might be able to deduct the medical expenses they pay for him. If not, the grandson's parents might be able to use the deduction. Finally, the grandson himself might benefit from medical deductions, if he is old enough and has enough income that he files a tax return of his own. To accomplish this the g'parents should consider getting the needed funds, via gifting, into the hands of the person who can use the medical deductions when the bills are paid.
        Roland Slugg
        "I do what I can."

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