Re: [alpacapolitics] Re: [AlpacaTalk] UBIT taxes and non profit status-from the IRS website
Let's try a different approach Stephanie since you seem to be determined
not to answer the questions in my previous post.
Here's what you (Stephanie) said:
"5.QUID PRO QUO. Since everyone here seems to think that they are donating
to AOBA as a benefactor (you are paying for a service of getting a mailing
list) or to purchase a female at the AOBA auction, here is some info you
might want to know. When you donate, say, $5000 (and everything over $250),
AOBA needs to provide you with statement of donation to file with your tax
returns. Also, for that Benefactor status, AOBA must provide to you the
ACTUAL value of the benefit. You are ONLY allowed to write off the actual
amount of the benefit received--not the whole $5000, since we know the
benefit is not really worth $5000 in cash."
My comment: When you pay $5,000 to be a benefactor, AOBA does not have
to give you a statement of donation to file with your tax returns because
while it's a "charitable" thing
to do (i.e. participate in a fund raiser) it is not a "donation." The
cancelled
check is proof of payment and John is right, it is an expense. I'm asking
you why do you
think AOBA has to give you a statement of donation? While paying the
Benefactor fee
is a nice thing to do because it rasies money for AOBA as what they give
costs a lost less than
$5,000, it is still an expense for the farm doing it not a donation. And
it's a charitable thing to do but it is not
a "charitable donaton." No "statement of donation" is necessary or
applicable.
Another comments: If you wrote a check for $5,000, you CAN and should
write off (as an expense) the entire
$5,000. It might not be worth $5,000 in value (that's the fund raiser
part) but since you wrote the check and the $5,000
left your account, it should be expensed.
You said in the above paragraph: "...or to purchase a female a female at
the AOBA auction"
My comment: Purchasing an alpaca is not a donation. It's a purchase.
Stephanie said: "We know that. Are you paying for your marketing by paying
for "Benefactor" status, or is it a donation to a non-profit organization?
If you donate to PBS and are recognized for your donation, you are not
given a membership roster so you can do direct marketing to them. You have
told us all how charitable you have been to the membership over and over.
Which is it? Marketing funds, or a donation?
My response: I'm doing the smoke and mirror bit? I'm not certain why this
is so important to you but I'll answer the best I can. Let's say that I
have money in my marketing budget. I decide that buying a sponsorship is a
good way to get my name out there, market and promote my farm and at the
same time I do a "charitable" thing by buying a service for more than it is
worth to help AOBA raise money. IRS sees it ($5,000) as an expense, which
it is because I spent it. It is also a generous thing to do...a
"charitable thing to do." You are playing word games and this is a way to
divert attention away from answering my questions which clearly you aren't
going to do.
Stephanie said: You said that you worked for a CPA firm? So, you have a
CPA?
I made some requests in my last post. Are you going to answer them?
I look foward to seeing what the Board and the lawyers and CPA's set up.
Hopefully, that will answer a lot of everyone's questions. In the
meantime, instead of getting all upset over what might happen, perhaps you
can contact Amy or Steve and find out what's going to happen...or at least
current thinking. Just a thought.
Thanks
Libby
Earn your degree in as few as 2 years - Advance your career with an AS, BS, MS degree - College-Finder.net.
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posted by Chaddo at 9:32 AM
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