Donation Policy
We are profoundly independent in our mindset and thinking, at the same time we encourage serious thoughts and arguments that may differ from us, such differences might even help us to fine tune our thinking and arguments too. We are willing to subjugate and/or modify our arguments if alternate, rational, logical arguments are provided that show otherwise. At the same time we welcome donations from the general public, to assist in defraying operational costs, according to the individual’s ability to contribute. We wish and intend to maintain that principle but do recognize the ability of “money” to influence content and directional trend.
With this in mind our Policy is to limit identifiable donations above and beyond a certain ceiling. In the US, donation to not-profit organizations must report donation above $5,000 per year on their annual tax returns of their Schedule B of Form 990-PF. The donor also need to take advantage of their tax exempt donation by declaring their donation, with appropriate receipt from the recipient. We will acknowledge all donations with a receipt letter, and if any compensation or quid pro quo that will be stated also. But in any donations of $5,000 and above we require that the donation be anonymous.
How to execute an anonymous donation.
- Some anonymous donations can be made through a Donor Advised Fund set up at a community foundation, some services are provided for this at religious organizations, Universities and several commercial gift funds managed by several financial institutions. Even though the “Donor” is supposedly defined, once the money is transferred, the donor has no legal or effective control as to where the donation actually goes. The Fund should be set up with no reference or link to your name. Checks (cheques) can be made using the Fund name, on advise of an anonymous donor, which is known to the entity managing the Fund. A lawyer may be needed to set this up.
- A more direct and guaranteed approach is to use a trusted agent as an intermediary in the transaction. This agent can be an adviser, a bank or a law firm. The agent issues a check under its name and receives the tax receipt on your behalf. Request documentation of both agent and ourselves that the gift was made by the firm, bank or adviser as an agent for an undisclosed principal.Our receipt will contain the statement “Thanks for your donation of $’5000 +’ you made as agent for an anonymous donor.”
The agent will then forward the tax receipt to you with a statement saying to the effect that “As directed by you, we made an anonymous donation to the Facttracks Organization; attached is the receipt for your donation.” - An Online Clearing House (similar to a Donor Advised Fund) can also be used, e.g. Network for Good. These use a credit card for payment, direct them to the recipient (facttracks.org), i.e. us. Depending on the donation amount use anonymous, mandatory for anything over $5,000, optional otherwise.
- Another approach is to create a revocable trust, NOT a grantor-trust, that does the donation. Here the Trust gets the income tax deduction. As a grantor trust the deduction passes through to the grantor and anonymity is eventually lost.
- Similar strategies are applicable for non-cash donations of comparable nominal value at ‘fair market price’. Such donation requires valuation by a qualified appraiser and submission of IRS Form 8283.
To claim IRS tax benefits for your non anonymous donation
IRS Tip provided – “To claim a deduction for contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document may satisfy both the written communication requirement for monetary gifts and the written acknowledgment requirement for all contributions of $250 or more. If your total deduction for all non cash contributions for the year is over $500, you must complete and attach IRS Form 8283, Non cash Charitable Contributions, to your return.” See IRS publications 561 & 526, and discuss further with your tax agent.
Contributions from International or Foreign Sources
These are treated as above, for US donors, with respect to levels of donation, anonymity, acknowledgment & receipts. Tax benefits of the IRS would not be applicable and would be dependent solely on tax laws in your country. Currently we do not make any contributions to Institutions in any foreign countries. We do know however that certain charities in Canada, Mexico and Israel, are exempt from IRS restrictions to receive tax exempt donation from US sources, we do not know of any reciprocity and as before this would be dependent solely on tax laws in your country and should be taken up with the competent authorities there.
Help Us Keep Our Thinking & Reasoning Free of the Influence of Big Money!