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Nonprofit Law/donations or charitable contributions

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Question
If I owned a company could I donate a % of my companies profits on a yearly basis? Or if possible make a non profit a partner or shareholder?
Thanks Jeff

Answer
Yes. Companies may make charitable donations that are deductible.  As to charitable deductions, see IRS Publication 526 "Charitable Donations"  which is available at http://www.irs.gov/pub/irs-pdf/p526.pdf
-limits on deductions for non-corporate taxpayers on page 13. There are lower limits of 10% of your taxable income if yours is a regular corporation but 50% limit if it is a "S" corporation. Section 170(a) of the Internal Revenue Code allows taxpayers a deduction for charitable contributions made within the taxable year.  However, 170(d) provides that in case of a corporation, the total deductions under subsection (a) for any taxable year shall not exceed 10 percent of the taxpayer's taxable income.
http://snipurl.com/fd10n

A nonprofit may also be a partner, but then the income to the nonprofit is generally taxable to it.

Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.

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Harvey Mechanic

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I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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