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To: Tumbleweed_Connection; Taxman
For an organization to qualify as charitable doesn't mean it benefits the poor," he said. "People tend to care the most about institutions they are personally connected to, and those that benefit tend to be those connected to people of means like land charities, museums, colleges and hospitals.

Charitable deductions should not be tax deductable. Most do not go to the poor. This year for example, about 200 million will go to Stanford U. and I think that only puts them at about 7th on the list of "ivy" schools.

Further, there are the BS contributions to "land conservancy", Sierra Club, our own Heritage foundation, etc.

Further are the scams of the United Way, where the director gets 600k a year and the fund pays for condos in FL, and a condo for his mistress.

For the rich, it is also a nice vacation scam. You set up a foundation, pick you and your relatives as "directors" and make sure a lot of "necessary" travel to Fiji, Hawaii, etc. is involved. That way you can donate appreciated stock, get a nice tax deduction, avoid capital gains tax and get free vacations on pretax dollars, with the only caveat that 10% of the money actually go to "charity"

3 posted on 01/01/2004 8:33:27 AM PST by staytrue
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To: staytrue
For the rich, it is also a nice vacation scam. You set up a foundation, pick you and your relatives as "directors" and make sure a lot of "necessary" travel to Fiji, Hawaii, etc. is involved. That way you can donate appreciated stock, get a nice tax deduction, avoid capital gains tax and get free vacations on pretax dollars, with the only caveat that 10% of the money actually go to "charity"

I think everyone I have ever met who could find a way to scam on their taxes scammed on em.

6 posted on 01/01/2004 8:42:20 AM PST by Huck (Tagline Censored by Admin Moderator)
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To: staytrue
"Further are the scams of the United Way, where the director gets 600k a year and the fund pays for condos in FL, and a condo for his mistress."

Mistress? Is this public? If not, and you know this to be a fact, please start blowing whistles. Among my top 10 things I'd love to see is the Unite Way discredited.

10 posted on 01/01/2004 9:22:10 AM PST by John Robertson
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To: staytrue
Foundations are the vehicle by which the very wealthy, say $20 million in net worth and up, pass their wealth on their heirs without going through probate or paying the estate tax. It also allows them to control the disbursement of their estate to their heirs long after their death. The assets transferred to the foundation qualify as a tax-deductible donation. By law, each year the foundation is required to donate 6.2% of its assets to charity, or pay an excise tax on the total assets. If the assets are properly invested, usually in real estate or blue chip stock, annual returns of 8 to 12% can be expected. The return on investments remaining after administrative costs (say .5% to 1%) and the donations are subtracted can be paid to the "directors" (heirs) as a "management" salary. For these directors salaries to be significant, the foundation has to be fairly large. For example, a $100 million foundation earning 10% and with a 1% administrative fee will have about $2.8 million to distribute to the heir-directors. While this example does not factor the declining value of the assets from inflation (real estate is a preferred vehicle for this reason), even distributing the $2.8 million to 20 heirs gives each one $140,000 per year - plenty to live on or piss away, as the case may be. I hope this example shows that probably 80% of foundations are set up for other than charitable purposes.
29 posted on 01/01/2004 11:19:03 AM PST by KAUAIBOUND (Hawaii - a Socialist paradise)
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