Trump's influence going forward

[Gregg]

Is a PAC a charity? What, if any, is the difference between a non-profit and a charity and is Trump allowed to run either one?

[Tiredretiredlawyer]

Is a PAC a charity? What, if any, is the difference between a non-profit and a charity and is Trump allowed to run either one?

A PAC is a Political Action Committee, not a nonprofit or charity. It can only receive monies donated, not grants, and the donations are restricted. The tax filings are different.

[AndyinPA]

I remember lessons learned from Stephen Colbert and Trevor Potter:

https://en.wikipedia.org/wiki/Colbert_Super_PAC

[Colbert] was able to show America the loopholes (or “loop-chasms” as he called them) in the laws designed to regulate coordination between candidates and supposedly “independent” groups. By having his own Super PAC and 501(c)(4), Stephen could evolve right alongside the campaigns—or often be a step ahead of them. His understanding of the possibilities inherent in the legal confusion was keen enough to discover and exploit absurd legalities before it became clear that actual candidates and political activists were doing the same thing.[23]

[bbflatt]

All charities are tax-exempt not for profit entities, not all tax exempt entities are charities. IRC section 501 lists over 20 types of tax exempt entities, including certain insurance companies (501(c)(15)), cemetery associations (501(c)(13)), veterans groups (501(c)(23)) and credit unions (501(c)(14)). Donors are only permitted a deduction for contributions to a charity described in IRC 501(c)(3).

PACs are effectively tax exempt under IRC section 527.

[noblepa]

All charities are tax-exempt not for profit entities, not all tax exempt entities are charities. IRC section 501 lists over 20 types of tax exempt entities, including certain insurance companies (501(c)(15)), cemetery associations (501(c)(13)), veterans groups (501(c)(23)) and credit unions (501(c)(14)). Donors are only permitted a deduction for contributions to a charity described in IRC 501(c)(3).

PACs are effectively tax exempt under IRC section 527.

PAC's themselves may not pay taxes, but I don't believe that donations to a PAC are deductible by the donor. OTOH, donations to a charity, such as the Red Cross or your local church ARE deductible by the donors.

Nor are donations to a candidate's campaign deductible.

[neonzx]

PAC's themselves may not pay taxes, but I don't believe that donations to a PAC are deductible by the donor. OTOH, donations to a charity, such as the Red Cross or your local church ARE deductible by the donors.

Nor are donations to a candidate's campaign deductible.

Correct. Only giving to a 501(c)(3) org can you claim a deduction for a donation.
For example, some non-profits have two wings -- the lobbying wing, those donations are not tax deductible. A second wing that may provide assistance and education, those deductions are.

i.e. The NRA has both. (never given, of course).

ETA: Are tithes to a church really deductible? I can understand if they are offering public services, like a food kitchen feeding people -- but normal operating expenses?

[MN-Skeptic]

ETA: Are tithes to a church really deductible? I can understand if they are offering public services, like a food kitchen feeding people -- but normal operating expenses?

Absolutely.

[Suranis]

I remember lessons learned from Stephen Colbert and Trevor Potter:

https://en.wikipedia.org/wiki/Colbert_Super_PAC

Yes Colbert was able to show some of the ridiculous things PACs can do. I think that this is my favorite footage from that whole arc though.

[Volkonski]

Chris Polansky
@ChrisKPolansky
Eyes Eyes Eyes

Lahmeyer is primarying
@SenatorLankford
from the right, and he’s planning to officially launch his campaign next week in Jenks alongside disgraced general Michael Flynn. He’s campaigning on Lankford having “betrayed President Trump.” He just posted this.

[Slim Cognito]

Will he have to kiss a ring?

[Estiveo]

Will he have to kiss a ring?

Or a wee, tiny, little toadstool?

[Flatpoint High]

Is a PAC a charity? What, if any, is the difference between a non-profit and a charity and is Trump allowed to run either one?

A PAC is a Political Action Committee, not a nonprofit or charity. It can only receive monies donated, not grants, and the donations are restricted. The tax filings are different.

and unless he decides to run for office again, he can really do more or less as he pleases with the money, as he in fine print informs the >$5K donors, I think

[Lani]

Former President Donald Trump's latest off-the-cuff quip occurred at Mar-a-Lago Friday night, in which he floated the idea his daughter-in-law, Lara Trump, is preparing a North Carolina U.S. Senate campaign.

Lara Trump, a senior 2020 campaign adviser for the 45th president's unsuccessful re-election effort, is seriously considering mounting a campaign to replace retiring North Carolina GOP Senator Richard Burr. Several anonymous sources and close associates have for weeks suggested she is planning to run in her home state, but the 38-year-old has only hinted to supporters and urged them to "stay tuned."

On Friday, during a surprise remark to attendees of a Big Dog Ranch Rescue fundraiser for pets, the former president appeared to amplify those rumors.

"I want to thank Lara, who's been so incredible," the former president said on the stage of the fundraiser Friday at his Mar-a-Lago resort in West Palm Beach, Florida. "I don't know, you're running for the Senate. I hear she's going to run for the Senate."

https://www.newsweek.com/donald-trump-h ... 1615653957
Video at the link.

Big Dog Ranch Rescue appears to be money funnel to the former guy.

[bill_g]

Correct. Only giving to a 501(c)(3) org can you claim a deduction for a donation.
For example, some non-profits have two wings -- the lobbying wing, those donations are not tax deductible. A second wing that may provide assistance and education, those deductions are.

A benefit of having a 501(c)(3) to donate money through is the ultimate recipient does not have to claim it as income. For example, if you wished to assist your neighbor with their bills, giving them money directly counts as income. But, if they receive it through a 501(c)(3), it doesn't.

[humblescribe]

Correct. Only giving to a 501(c)(3) org can you claim a deduction for a donation.
For example, some non-profits have two wings -- the lobbying wing, those donations are not tax deductible. A second wing that may provide assistance and education, those deductions are.

A benefit of having a 501(c)(3) to donate money through is the ultimate recipient does not have to claim it as income. For example, if you wished to assist your neighbor with their bills, giving them money directly counts as income. But, if they receive it through a 501(c)(3), it doesn't.

Actually, this would be considered a gift. Gifts are not income to the recipient. Ever. The only downside to gifting is that the person who gives property to another must file a gift tax return if one or more recipients receive >$15,000 per year per giver. Even then there would be no gift taxes due on the return.* Then there is an exception for paying tuition and medical bills directly to the providers. Those payments are off the radar.

Now, if said neighbor loaned money as evidenced by a promissory note, and then he forgave this loan, that is a taxable event. Forgiveness of debt is income.

*TLDR; for the ultra wealthy; maybe. But that is another show.

[Uninformed]

[bill_g]

Correct. Only giving to a 501(c)(3) org can you claim a deduction for a donation.
For example, some non-profits have two wings -- the lobbying wing, those donations are not tax deductible. A second wing that may provide assistance and education, those deductions are.

A benefit of having a 501(c)(3) to donate money through is the ultimate recipient does not have to claim it as income. For example, if you wished to assist your neighbor with their bills, giving them money directly counts as income. But, if they receive it through a 501(c)(3), it doesn't.

Actually, this would be considered a gift. Gifts are not income to the recipient. Ever. The only downside to gifting is that the person who gives property to another must file a gift tax return if one or more recipients receive >$15,000 per year per giver. Even then there would be no gift taxes due on the return.* Then there is an exception for paying tuition and medical bills directly to the providers. Those payments are off the radar.

Now, if said neighbor loaned money as evidenced by a promissory note, and then he forgave this loan, that is a taxable event. Forgiveness of debt is income.

*TLDR; for the ultra wealthy; maybe. But that is another show.

Thank you for the correction. Back in the early 2000's when I has president of a local food bank, we wanted to start a rent assistance program because we saw the need. Our group lawyer advised we create a foundation to run the money through so the recipients would not be burdened with taxable income. Perhaps he was wrong, or perhaps things have changed. But, that is how we proceeded.

[Luke]

It is so nice not to care about DL2XIT's influence (if he's really going to have any). The Trumpers are mostly silent on Twitter (other than the grifting trolls, keep them in a Clowns list but even they seem half-hearted), they've either been banned or discouraged. Parler is mostly a ghost town. Maybe they are on Gab but don't bother with that much. For example, oh no, Lindell is doing a Dr. Seuss ad:

Gorka Lindell.JPG (40.15 KiB) Viewed 3037 times

Trumpers make a big deal of the low initial number of views of President Biden's events. It still hasn't sunk in that most of America is not a cult that hangs on every word of a Dear Leader. And, knowing the government is being run by competent adults means we don't have to watch 24/7 to see what pettiness or disaster happened overnight. Cable ratings are bearing this out, the news networks' ratings are down significantly (but that's also normal for non-election years). DL2XIT supporters can't or won't understand any of the reasons; they misinterpret tiny details desperate to find some solace.

[pipistrelle]

And, knowing the government is being run by competent adults means we don't have to watch 24/7 to see what pettiness or disaster happened overnight.

Precisely.

[noblepa]

Correct. Only giving to a 501(c)(3) org can you claim a deduction for a donation.
For example, some non-profits have two wings -- the lobbying wing, those donations are not tax deductible. A second wing that may provide assistance and education, those deductions are.

A benefit of having a 501(c)(3) to donate money through is the ultimate recipient does not have to claim it as income. For example, if you wished to assist your neighbor with their bills, giving them money directly counts as income. But, if they receive it through a 501(c)(3), it doesn't.

Actually, this would be considered a gift. Gifts are not income to the recipient. Ever. The only downside to gifting is that the person who gives property to another must file a gift tax return if one or more recipients receive >$15,000 per year per giver. Even then there would be no gift taxes due on the return.* Then there is an exception for paying tuition and medical bills directly to the providers. Those payments are off the radar.

Now, if said neighbor loaned money as evidenced by a promissory note, and then he forgave this loan, that is a taxable event. Forgiveness of debt is income.

*TLDR; for the ultra wealthy; maybe. But that is another show.

IANAL or a tax accountant, but doesn't the IRS question whether there is a "gifting relationship" between the donor and the recipient. Gifts to close family are perfectly okay, although, if the gift is large enough, it may trigger a gift tax. But a gift to a stranger is not considered a legitimate gift. I remember reading of a case in which someone gave money to a homeless person, not through any kind of charity, just a direct payment. Had the gift come through a charity, all would have been okay, but it wasn't. I believe the donor tried to argue that, since a similar gift to a legitimate charity, which would have, in turn paid the money to the recipient, his payment should be deductible as a charitable contribution. The IRS said no.

I have also heard of people trying to sell something to another, such as a car, with the seller calling the car a gift to the buyer and the buyer calling his payment a gift to the seller. The idea was to avoid paying sales tax. Again, the tax authorities said no. In Ohio, and perhaps other states, the gift of a car does not create a sales tax liability. I know, because back in 1982, my father gave me a 1978 Chevy Caprice. I was surprised when I went to get an Ohio title, that I did not have to pay sales/use tax.

[MN-Skeptic]

A gift is a gift no matter who you give it to.

A gift is not a deductible charitable contribution unless it is given to a charity as defined by IRS regulations.

A gift is not a gift to the extent that you receive something in exchange for that gift. I can't "gift" my neighbor $1,000 with the agreement that he'll paint my house. That $1,000 is income to him. If I receive a $25 tote bag from my local charity when I give them $500, I can only deduct $475 on my tax return.

[northland10]

A gift is a gift no matter who you give it to.

A gift is not a deductible charitable contribution unless it is given to a charity as defined by IRS regulations.

A gift is not a gift to the extent that you receive something in exchange for that gift. I can't "gift" my neighbor $1,000 with the agreement that he'll paint my house. That $1,000 is income to him. If I receive a $25 tote bag from my local charity when I give them $500, I can only deduct $475 on my tax return.

A $25 dollar tote bag? Wow, that is quite a tote back. Likely, most tote bags and mugs would fall under the insubstantial value rules as their cost is likely not higher than 2% of the payment (or $113). Now, I can safely say that a tie for a contribution of $125 would still require a $25 quid pro quo for the deductible amount, in the United States.

There is a fun feature from Canada revenue that shows that the IRS is not the most stringent agency around. If a business contributes to a charity, like a symphony, and the symphony prints names of donors, the business may not receive a tax deduction if they are listed as that is considered to be a benefit to the business (i.e. advertising). If the business chose not to be listed, they could receive the deduction.

[bbflatt]

There is a fun feature from Canada revenue that shows that the IRS is not the most stringent agency around. If a business contributes to a charity, like a symphony, and the symphony prints names of donors, the business may not receive a tax deduction if they are listed as that is considered to be a benefit to the business (i.e. advertising). If the business chose not to be listed, they could receive the deduction.

I know virtually nothing about Canadian tax law, but it seems to me that if it is to be considered advertising it should still qualify as a business deduction.

[Flatpoint High]

His team is looking to formalize a process for vetting endorsement prospects, assessing what candidates have said and done for Trump in the past.

Ahh, yes. A country in which the ONLY qualification for public office is, "What have you done for the boss of the nation's leading crime family?"

Can't wait to see it come to fruition.

Knowing how obsequious his sycophants are, they just might succeed. Remember: has foot soldiers who will resort to intimidation to get what their 'GEOTUS' desires

[northland10]

There is a fun feature from Canada revenue that shows that the IRS is not the most stringent agency around. If a business contributes to a charity, like a symphony, and the symphony prints names of donors, the business may not receive a tax deduction if they are listed as that is considered to be a benefit to the business (i.e. advertising). If the business chose not to be listed, they could receive the deduction.

I know virtually nothing about Canadian tax law, but it seems to me that if it is to be considered advertising it should still qualify as a business deduction.

If the business is listed in a list of donors like a "hall of honor" or some donor page of the concert program, they cannot take a charitable deduction (in Canada). Whether they are entitled to other deductions for business expenses, like advertising, I have no idea. That is outside my basic charitable giving knowledge (picked up from some classes, various work engagements, conferences, forums with experts, and reading material).