Re: [AGA-mcm] Category Sponsorship

["S. Hieber" <shieber@yahoo.com>]

Short answer: Because it's the law and I'd rather mess with
mother nature than the IRS.

Slightly longer answer: Because you didn't donate enough to
the Bush campaign or hold fund raisers for the RNC at your
home.

Long answer: Organizations that are tax-exempt under
501(c)4 of the Federal Tax code (as is the AGA), are not
tax-deductible organization. If we were receognized under
501(c)3, the big kahuna of tax-exemption, then anything
folks gave us might be eligible for deductibility. 501(c)3
is like the Red Cross. 501(c)4 is like the New Rochelle
Lily Fanciers & Horticultural Society or the
Corner-of-Braxton-&-Fairmont-Needs-a-Street-Light-Committee.

I believe the ACA has 501(c)3 status. Wow.

But it's not all bad news. By agreeing to be considered for
501(c)4 instead of 501(c)3, which had already been
implicitly denied, or 501(c)7, which was going to be
denied, we were able not only to get tax-exempt recognition
but also get it all the way back to the date of
incorporation -- so no back taxes or penalites for not not
filing annual forms, which alone was probably worth tens of
thousands of dollars -- jsut look at what ACA was asked to
pay for being a few months late with its annual filing.
Retroactive recognition is a special feature of 501(c)4.
Plus the status is not revocable as easily as 501(c)3
status.

sh

--- Cheryl Rogers <cheryl@rightstuffwebsites.com> wrote:

> 
> 
> S. Hieber wrote:
> > 
> > 
> >>What benefits would
> >>
> >>>folks donating prizes who aren't category sponsors
> get?
> >>
> >>. . . Income tax deduction. . .
> > 
> > 
> > 
> > Oh no. Not for donations to AGA. They may be increasing
> > their expenses and thereby reducing their income and
> > possibly reducing their income tax obligation, but no
> > deduction.
> 
> Why not?

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