Legal Question in Business Law in Kentucky
charity
My daughter has cancer and many of her friends and coworkers want to donate money. Mostly small amounts in lieu of flowers, etc. I set up a bank account to which they could deposit funds. However, now my employer wants to donate a large amount to pay off her car loan...around $5000 and would like it to be tax deductible. Is there a way I can set this up that way?
1 Answer from Attorneys
Re: charity
It can be done but there is much that goes into it. You have to set up a corporation or LLC and then you have to get approval from the IRS for 501(c)(3) tax exempt status. It would probably not be worth the effort unless you anticipate other large gifts.
An easier approach is if you are connected to a church and the church is willing to set up a special fund. It would be wise for the fund to be available to others in need. They may even already have such a fund. Then, they agree to accept the donation. If the fund is not just for your daughter and is actually used for others in need, then it would likely be safe for them to put the $5,000.00, or the lions share of it, towards your daughter's needs and it still be tax deductible.
If your church is willing to look at this, they would need to consult a lawyer about the details to be sure it is all above board and compliant with all laws.
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