Hang on to your hat and keep your checkbook ready to write another check…to the IRS. The IRS has stated that NIL donors will be taxed & the money that goes into a NIL collective will not be tax-exempt. That’s a dash of cold water for ya…
NIL donations taxable?
- Thread starter acoustimac
- Start date
Frankly, I don't know how they were ever construed as tax-exempt...
I just listened to the Williams and Blum podcast from Sunday. Blum specifically said that the We Will collective already received their letter of affirmation of tax exempt status recently.
Let's slow our roll here. Most NIL collectives that take the money aren't tax exempt, as they were never a tax exempt entity to begin with. You aren't taxed on giving money, only if you were trying to claim a charity deduction to a organization that wasn't tax exempt. It's no different than if you donate to anyone else, it's your money it's not income there is no tax to the giver.
The ISU Foundation is tax exempt but donations to the foundation for preferred seating status are technically not tax deductible...
And frankly most people don't itemize anymore so it really doesn't mean a lot unless states offer a deduction for charitable contributions.
And frankly most people don't itemize anymore so it really doesn't mean a lot unless states offer a deduction for charitable contributions.
Plus, with the changes (increases) to standard deductions you have to have a LOT of charitable dollars to make itemizing a thing for a lot of peeps now. First time in decades I went standard was a couple of years ago. Thinking of doing charity stuff, like ISU Foundation, every two years now, Two years worth in one year would make it back into itemizing for that tax year.
This is correct. Until we hear otherwise from the IRS any gifts made to We Will Collective are still tax deductible. If you’re not comfortable going that route you can always join the We Will Club at wewillclub.com. I’ll definitely keep everyone in the loop as this changes but this hasn’t impacted us or our donors yet.
Most collectives don't operate like We Will and I think you guys have positioned yourselves well to keep your tax exempt status. Just speculating but I'd say 95% of the currently operating collectives will not be tax exempt.
Probably fair. Thankfully we have the for profit route setup and functional if the tax exempt area is regulated. But for now it doesn’t impact donors, hopefully that information is useful!
Tax exempt organizations have a ton of rules. Always check for before donating. Additionally youre going to run into issues if you give more than allowed to for profits or individuals.
https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations
https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations
speculate
1. to guess possible answers to a question when you do not have enough…
dictionary.cambridge.org
This was released by the IRS Friday.
Tax law changes, starting in 2018, made the option of using itemized deductions on a schedule A for the vast majority of 1040 filers almost nonexistent. This makes the issue of "deductible contribution" a moot point.
Make a contribution, don't think tax benefit.
Make a contribution, don't think tax benefit.
There is no way that NIL donors will be taxed.
Do you really not listen to the Williams and Blum podcast?
Nope. If they, like many podcasters, offered a bullet point summary I’d likely look at that. And what Blum may have said is irrelevant to the reason for the post. The IRS has stated the stance is changing as a look at NIL moves forward. While the ISU group may be just fine it’s also possible things will change.
