Charitable Deductions

[tpnl]

Client has started her own ministry, but has not completed the paperwork to be non-profit. So no tax I.D. number.

She was asked to come and give senimars for other organizations. If the other organizations do qualify as non-profit, and she has the documentation to prove they wanted her to come speak, I say yes she can take the deducation.

She also goes to the local prison and ministers to prisoners. I say she cannot take any charity deductions for any of those expenses because she is only going there through herself and not any approved organization.

Anybody have thoughts?

[solomon]

Client has started her own ministry, but has not completed the paperwork to be non-profit. So no tax I.D. number.

She was asked to come and give senimars for other organizations. If the other organizations do qualify as non-profit, and she has the documentation to prove they wanted her to come speak, I say yes she can take the deducation.

She also goes to the local prison and ministers to prisoners. I say she cannot take any charity deductions for any of those expenses because she is only going there through herself and not any approved organization.

Anybody have thoughts?

I believe your positions are in line with §1.170a-1(g).

[Gretel]

Client has started her own ministry, but has not completed the paperwork to be non-profit. So no tax I.D. number.

She was asked to come and give senimars for other organizations. If the other organizations do qualify as non-profit, and she has the documentation to prove they wanted her to come speak, I say yes she can take the deducation.

She also goes to the local prison and ministers to prisoners. I say she cannot take any charity deductions for any of those expenses because she is only going there through herself and not any approved organization.

Anybody have thoughts?

I thought churches and ministries don't have to file for exempt status and are a qualified org just by what they do. So, if she is a minister, she is the church, isn't she? What do I miss?

[thomtax]

This follows with my understanding.

LT

[tpnl]

She is not a minister. She has never gone to school for ministry. She is a nice lady who wants to help people.

I just found out she has a non-profit tax id number. She told me before she did not have one. She has a check book for this organization. However, she operated in 2008 out of her personal checkbook.

Would any of you have a problem taking her deductions on her personal or would you have her complete a tax return for her non-profit?

She also owns/operates a bar. She has a regular full-time job making 100K. She is always looking for deductions, coming in saying her friends deduct this and that. I just feel uncomfortable the way she operates. She should do things the right way. I did not set up the non-profit, so other accountant did.

[anu31402]

She has her own "ministry" and at same time own a "bar."? ...makes over $100k? A dangerous combination. I say "RUN!

[MAMalody]

That is an odd employment combination. Just cross the "Ts" and dot the "Is".

If the nonprofit is required to file a return, do so.

If there are qualifying contributions, take them.

If you run across a red flag, explain the situation and based upon her response keep her or send her to someone "more familiar with her situation and needs."

Make sure you have an engagement letter and review docs on those items that could be questioned.