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ndation, n.d.) Public charities are made up of churches, hospitals and qualified medical research organizations affiliated with hospitals, schools, colleges and universities. Similar among all these institutions are: a) they receive contributions from many sources and have active program(s) for fundraising; b) their income is generated by activities that enhance and promote their purposes; and, c) they actively work in relationship with another public charity.
To be a public charity, organizations mentioned above should submit documents that “must contain purposes and powers of an organization and disposition of its assets under dissolution, in order to qualify for exemption under Internal Revenue Code section 501 (c)(3).” (Sample Organizing Documents – Public Charity, 2009) In short, they must comply with the language the IRS requires. These documents may be, but are not limited to, the trust instrument, corporate charter, articles of incorporation, articles of association, or other written instrument by which the organization is created under state law. It should be remembered that these requirements may vary among states and/or countries as well. Public charities must ensure that the purpose and assets stated in these documents are dedicated to charitable purposes.
To be exempt under IRS section 501(c)(3) of the Code, initially, a public charity must file IRS Form 1023.This and other forms can be acquired online or from a cd, both available on the IRS website (www.irs.gov), by calling 1-800-TAX-FORM (1-800-829-3676) or visiting local IRS offices. There are certain organizations that are already considered tax exempt even without the filing of Form 1023. These are a) churches, b) their integrated auxiliaries or associations of churches and c) any organization with a gross income of not more than $5,000 in a taxable year.
Applicants must ensure that their organizing documents comply with the IRS requirements. The IRS will not process incomplete
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The conventional observation is that non-charitable purpose trusts are void. In “Re Endacott”1, Lord Evershed M.R viewed that “a non-charitable trust under English law cannot be enforceable as it is not having ascertainable or quantifiable beneficiaries.” In “Bowman v.
Patagonia is dedicated to contributing 1 percent of all their sales to environmental groups (Greenhouse, 2008). Since this initiative began in 1985, the company has donated over $40 million and has convinced several thousand for profit and not-for-profit businesses to donate 1 percent of their own sales as well(Patagonia).
Charitable gifts take several dimensions such as offering services, giving used or new goods like vehicles, toys and clothing, or giving cash (Colliton, 1999, p. 6). Normally, charitable gifts are given with no consideration for return. Legally, that implies that an agreement to make charitable giving does not include return consideration.
In actual context, civil societies influence the social and economic aspects of a nation. Civil society organizations facilitate the realization of the most fundamental goals held by the society in general. These organizations include associations aimed at providing charitable services to the community.
Tax incentives for charities actually reduce the amount of tax revenue for government, which, the government uses for social projects. There are some rules by IRS; one must abide by them if one wants to acquire the tax benefit of charitable donations. Some examples of people in the world who made huge charitable contributions are Steve Jobs, Bill Gates, Warren Buffett, and Oprah Winfrey.
The sales have increased because now the sales from its sound engineering and music technology business has started to become a household name due to the high quality work done by the students of Q notes school.
According to cyberhaven.com with the website http://www.cyberhaven.com/businessbooks/taxes/0966159608AMUS12737.html, in its article entitled The Charity's Guide to Charitable Contributions (Law & Tax Guides for Charities Series) Pamela McAllister, she said that "Charities face increasingly complex government regulation.
Even with all its good intentions Starbuck’s faces an even more complex set of problems with respect to corporate responsibility. It grew up based on a paradigm of corporate social responsibility that has made it so profitable as to create a unique new set of market issues with respect to its corporate success.
The advantages of a charitable organization in United Kingdom are that their earnings are tax exempted, so that they can serve charitable purposes better. Moreover, fund raising takes place very efficiently if the organization is established. Then the employees do not have to worry about reaching targets as to profits.