- Jurisdiction
- California
I have been doing some research into a US 501(c)(3) charitable organisation, based in California. However, there are some cloudy specifics:
- This organisation was set up by another Non-Profit Org in the UK (which works towards the same causes), and appears on the surface, to be a conduit for this UK based company.
- From looking at previous 990 forms of the organisation over the last 6 years, every single year it receives in the hundreds of thousands of donations.
- Every single year it sends this annual total of donations across to the UK in the form of a single grant to a deliberately unnnamed UK charitable organisation. The 990 forms state that this UK organisation works towards the same causes as the US charity.
- Every year, the name of the UK charitable organisation is left blank on the 990.
Now, I have some questions about the above I have not been able to find anyone to answer as yet:
1) Is the US based charitable organisation required to specify which specific UK organisation is the recipient of this grant every year on their 990 form?
2) Is there a chance that if it is revealed that this recipient is the exact same organisation receiving all the money, every year, can the US org really be said to be excercising 'control and discretion' in the release of these funds or could it possibly be seen as a conduit and therefore breaching tax laws that make donations to the org tax deductable?
3) Can it be said that if all the annual donations for a 501(c)(3) organisation get given in a single grant to the same foreign company, then that foreign company is being 'defacto earmarked' as a receiver of the donations and thus again, these donations are incorrectly ruled as tax deductable?
4) Is there any way possible to view which UK organisation is the recipient of this grant other than the 990 forms (which dont specify this)?
5) and finally, would either of what I have described above fall under the ruling of conduits in rev ruling 63-252?
Thank you very much for your help,
Your time is much appreciated.
- This organisation was set up by another Non-Profit Org in the UK (which works towards the same causes), and appears on the surface, to be a conduit for this UK based company.
- From looking at previous 990 forms of the organisation over the last 6 years, every single year it receives in the hundreds of thousands of donations.
- Every single year it sends this annual total of donations across to the UK in the form of a single grant to a deliberately unnnamed UK charitable organisation. The 990 forms state that this UK organisation works towards the same causes as the US charity.
- Every year, the name of the UK charitable organisation is left blank on the 990.
Now, I have some questions about the above I have not been able to find anyone to answer as yet:
1) Is the US based charitable organisation required to specify which specific UK organisation is the recipient of this grant every year on their 990 form?
2) Is there a chance that if it is revealed that this recipient is the exact same organisation receiving all the money, every year, can the US org really be said to be excercising 'control and discretion' in the release of these funds or could it possibly be seen as a conduit and therefore breaching tax laws that make donations to the org tax deductable?
3) Can it be said that if all the annual donations for a 501(c)(3) organisation get given in a single grant to the same foreign company, then that foreign company is being 'defacto earmarked' as a receiver of the donations and thus again, these donations are incorrectly ruled as tax deductable?
4) Is there any way possible to view which UK organisation is the recipient of this grant other than the 990 forms (which dont specify this)?
5) and finally, would either of what I have described above fall under the ruling of conduits in rev ruling 63-252?
Thank you very much for your help,
Your time is much appreciated.
