it's tax time! Who's your favorite charity?

[pink_albatross]

Say....
I know membership to CHGPA isn't tax deductable (we get some sort of service).
However --considering CHGPA is a non-profit organization, can I make donations to it and will they be tax deductible? Will the treasurer (hi Carlos ) send me a receipt at the end of the year, so that I can claim it on taxes for 2011?

Just wondering
-- ellis

[deveil]

i put out a feeler, don't know if he can help or not…
g

[JohnE]

As a CPA in tax practice (among other things), I can certainly answer that question. BUT I need to know how chgpa is organized. It is a 501c3 or c6 or what? Who can tell me, and then I can tell you?
John

[JohnE]

Actually the most likely case is a 501c7, social and recreation club, but I need to be sure.

[JohnE]

I have to be away from the computer for most of the day, so I am posting the answer for several possibilities and when the authoritative answer comes back as to which 501 'flavor' chgpa is, then you all will know what to do.

I have copied verbatim from the IRS website (Publication 557) http://www.irs.gov/publications/p557/ch ... 1000200325
in case there are skeptics who want to see for themselves.

501c3 donations are tax deductible
Contributions to domestic organizations described in this chapter, except organizations testing for public safety, are deductible as charitable contributions on the donor's federal income tax return.

501c6 may be deductible (not likely, though):
Tax treatment of donations. Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business.

501c7 donations not deductible
Tax treatment of donations. Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return.

Hope this is useful to you.
John

[deveil]

dang you're quick!

[deveil]

btw, john has a lot going on right now, more than just tax time, so best to keep this discussion succinct and tight.

[dbodner]

The other problem is that if CHGPA has more than $5,000K (IIRC) of income for the year, then Carlos would have to submit an income tax return for CHGPA. However, I defer to John's opinion.

[markc]

Many years ago, I saw some paperwork indicating that CHG(P)A had been granted 501c3 status by the IRS. This was a selling point when soliciting donations for the raffle that we've often held during the Pulpit Fly-In, because donors could write off their merchandise donation as a charitable contribution.

Somewhat more recently, I seem to recall that the IRS was making a push to 'recertify' the 501c3 status of tax-exempt organizations. I don't know if CHG(P)A ever complied with that, and if our status is still intact.

There's a chance that I might have copies of some of the 501c3 paperwork, in boxes of CHG(P)A arcana that found their way to my place a few years back. I can look around if anyone is seriously thinking of a large contribution to the club, and would like to realize some tax benefits.

MarkC

[pink_albatross]

Define "large".
And if a number of people do what I was planning to do (monthly donation is so easy to set up with online banking it might be worth it?
-- ellis

[JohnE]

I would be happy to look into that paperwork and see what it suggests and what the status is and report back to you all. For the moment I am a non-flying member, but I can contribute some other way. I have not done any pro bono work yet this year and doing some is good for karma. May would be a good timeframe for me, so just give a call at 703-858-0366 when you unearth the papers.

FYI A search of the online nationwide IRS list of 501c3 entities revealed only 3 organizations including the words "hang gliding":
Elsinore Hang Gliding Association Inc. Mission Viejo CA USA --
United States Hang Gliding and Paragliding Association Colorado Spgs CO USA --
United States Hang Gliding Foundation Inc. Dunlap CA USA

http://www.irs.gov/app/pub-78/

[Matthew]

CHGPA has a 501 (c) 3 status and donations to the club are tax deductible. Skip Rifkin set this up decades ago and I re-certified it when I was treasurer.

Matthew

[mcelrah]

Ya, I confirmed the 501.3(c) long ago and faraway when I was treasurer too. - Hugh

[JohnE]

That's great to hear, but the definitive list of currently recognized charities is Publication 78 of the IRS, which lists every charity recognized by the IRS. It is updated frequently and is now only available online: http://www.irs.gov/app/pub-78/ That publication lists all US charities to which deductible charitable contributions can be made.

I searched for every charity beginning with the word "Capital" in hopes of finding it and could not. So, unless it is listed under another name, or someone else with more time than I have right now can poke around and find it, chgpa does not now appear to have that status.

A phone call to the IRS from one of the current officers could ask the question: "What do their records show as the form of exempt organization of chgpa (give its legal name), taxpayer ID number 12-3456789 (whatever the correct one is)" They will tell you what they have on record. The answer should be something like: "501c3" or "501c7", etc. The IRS will willingly talk to officers of an organization but not just to anyone who has a question about an organization. Hence, the need for an officer to make the call.

Despite popular misconception, the IRS doesn't (usually) bite, so I suggest you give that a try. If, indeed, it has fallen off of the list, it might be worthwhile to get it back on, which is sometimes not a big deal.
John

[JohnE]

Of course, I should have provided the contact info:

Telephone Assistance for Exempt Organizations, Retirement Plan Administrators, and Government Entities:
Toll-Free, 1-877-829-5500
Hours of Operation: Monday – Friday, 7:00 a.m. to 7:00 p.m. Central Time.

sorry!
John

[mcelrah]

How about "capitol" with an "o"? - we had a long discussion about which spelling to use in the name a few years ago...

Thank you for alerting us to this - according to Mark there is a newer IRS position than either Matthew's or my tenure as treasurer. Apparently if you haven't filed - even if no tax owed - since 2006, they are purging you from the list. (This is affecting thousands of small non-profits, such as my son's Boy Scout troop...) According to the article he forwarded, we have until 15 May this year to file to retain the status - but if we aren't on the list, maybe we already got purged? ('Course, then, when individuals claim a charitable deduction, does IRS have the wherewithal to track each one to an "approved" charity?)

- Hugh

[JohnE]

I think it would be worthwile to stay on the list. I do these filings all the time. There is even an EZ form that should work. If the right person (someone with some numbers from last year and some organizational info (name, date created, EIN, etc.)) can get with me next week, the May 15 deadline should be no worry. Hugh is right that the deadline is May 15.

An officer should still call the IRS and get the current view of the situation (or if the officer would sign an IRS Power of Attorney permitting me to call, I would). The proper chgpa person should contact me next week, if you want my help with this.

John
703-858-0366 (work)

PS Nothing starting with "Capitol Hang" is on the list either.

[markc]

Yikes, didn't realize how much club stuff I've got from the 70's and 80's! Took a quick look a some boxes, but finding the original IRS paperwork is going to take some concerted digging. I'll try to do so within the next week or two, in the hopes that the original EIN might be found.....

MarkC

[dbodner]

I seem to remember a couple of years ago that the EIN number we'd long thought was correct wasn't. It only became an issue when the bank made it one. I believe I ended up getting a new number from the IRS. It should be in Carlos' records.