*While the whole charitable donation subject and process for soliciting donations for both ABLEConf and PLUG (which, granted are quite different orgs) and for Volunteers claiming a tax credit or equipment donations, claiming a tax credit needs to be addressed formally, and recommendations or best practices to members and volunteers needs to written up and displayed on the volunteer section of the PLUG website, this post at tax time can assist you.* *ARIZONA LEGAL Summary: * A) Neither the PLUG, nor ABLEConf are 501c designated community action agencies. (Estimated DIY ost to obtain $1,000 fees, etc.) 1 below. below. B) Neither the PLUG nor ABLEconf have open public budgets. Part of A above requires election of a board, and treasurer. Neither the PLUG nor ABLEconf spend 50%of budget on services to Arizona residents. [Unknown see B above] C) Neither the PLUG nor ABLEconf have planning budgets, fund raising events or submit events for TANF (Temporary Assistance to Needy Families, however we could easily do so, should we be able to take 501c equipment contributions, for computer recycling. D) Neither the PLUG nor ABLEconf can submit a the Department of Revenue letter We could possibly get a charter as a "feeder organization" from LPI, ScALE, or LOPSA, however, I believe they will also require standard accounting and more. It might just be easier to DIY our own non-profit. Non-profit status would allow us to: 0) Have elected or appointed Board members designated for various ongoing responsibilities (so President [aka King] Hans doesn't have to do everyone [or nothing which is what is required in a non-profit, yet fails to grow because of limitations]]) 1) Hold fundraisers 2) Reimburse people for tee-shirts, equipment purchases for events, or at least provide a budget for BIG events and let they do as they will; since we would be able: (see 3) 3) Provide tax write offs for volunteer time, equipment, cash donations and mileage 4) Provide grants to youth for various purposes 5) Provide Scholarships to Member Classes or ASU? *Current Needs:* Of course we currently need: 0: a volunteer center for the PLUG both on the website (file and information sharing and in he real world where we can lock up equipment. I will set that up today in drupal). 1) Buy in and assistance from Der Hans for starting the Non-Profit Project fundraisers and putting together the court papers for both ABLEConf and plug (need address, [Han's house or business will do fine, but a P.O. Box is optimal]. From: http://www.azdor.gov/About/FAQs/QualifyingCharitableOrganization.aspx *References Regarding Volunteer Status Taxes and Benefits * A charitable organization must submit written certification on a prescribed application form to the Department of Revenue along with other information and documents. To view the form and detailed instructions, click here . The charitable organization must: 1) be a charitable organization that is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code Section 9901. 2) Spend at least fifty percent of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families (TANF) benefits or to Arizona resident low-income households or to chronically ill or physically disabled children who are Arizona residents. “Services” means cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state. 3) Provide financial data indicating the organization’s budget for the prior operating year and the amount of our budget spent on services to residents of Arizona who either receive Temporary Assistance of Needy Families (TANF) benefits, are low income residents of Arizona or are chronically ill or physically disabled children and 4) State that the organization plans to continue spending at least fifty percent of the budget in the future on services to residents of Arizona who receive Temporary Assistance of Needy Families (TANF) benefits, are low income residents of Arizona or are chronically ill or physically disabled children.The organization must also notify the Department of any changes that may affect its qualifications. The certification or change letters should be mailed to: Arizona Department of Revenue Office of Economic Research and Analysis 1600 W. Monroe Phoenix, AZ 85007 *Excerpt:*: *Charitable Contributions Tax Credit: If you are donating to a charity, you have to itemize deductions on your Arizona return in order to get this tax credit. * You can't just pick any non-profit organization. To qualify for this tax credit, a charity to which you would contribute must spend at least fifty percent of its budget on services to Arizona's residents who are considered working poor. You don't have to find that out for yourself; each charity knows if they qualify for the tax credit. Most of them will indicate this on their web site if they are. The organization may also have a form for this contribution* or online payment system*. You can often find the annual report online to take a look at how the money at that organization is spent. Even if the charity's web site doesn't have the information, you can call them to get it. The important issue here is that for you to receive the tax credit, the organization must be able to provide a copy of the certification letter from the Arizona Department of Revenue. Once you know that the organization you support is certified, then you can make the contribution and take your Arizona tax credit when you file your tax return. Charitable Contributions Tax Credit If you are donating to a charity, you have to itemize deductions on your Arizona return in order a charitable contribution deduction (get this tax credit). You can't just pick any non-profit organization. To qualify for this tax credit, a charity to which you would contribute must spend at least fifty percent of its budget on services to Arizona's residents who are considered working poor. You don't have to find that out for yourself; each charity knows if they qualify for the tax credit. Most of them will indicate this on their web site if they are. The organization may also have a form for this contribution or online payment system. You can often find the annual report online to take a look at how the money at that organization is spent. Even if the charity's web site doesn't have the information, you can call them to get it. *The important issue here is that for you to receive the tax credit, the organization must be able to provide a copy of the certification letter from the Arizona Department of Revenue*. Excerpt:: Once you know that the organization you support is certified, then you can make the contribution and take your Arizona tax credit when you file your tax return. If you don't have time to check out all the individual organizations that might qualify, and you don't have a favorite qualifying charity in mind, there are umbrella organizations, like United Way, where you can donate the money and they will distribute it. Abuse includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or income from donated property. The IRS also continues to investigate various schemes involving the donation of non-cash assets including situations where several organizations claim the full value for both the receipt and distribution of the same non-cash contribution. Often these donations are highly overvalued or the organization receiving the donation promises that the donor can repurchase the items later at a price set by the donor. The Pension Protection Act of 2006 imposed increased penalties for inaccurate appraisals and set new definitions of qualified appraisals and qualified appraisers for taxpayers claiming charitable contributions. Donors donating in-kind goods and claiming significant deductions for the contribution should expect extra scrutiny this year. Generally, donations of property (other than cash, inventory, publicly traded stock, or intellectual property) in excess of $5,000 require qualified appraisal. Also, any single item of clothing or any household item that is not in good used condition or better and for which the donor deducts more than $500 requires a qualified appraisal. The appraisal must meet the definition of a “qualified appraisal” which requires specific information to be included and must be prepared by a qualified appraiser who meets certain qualifications. If the donor does include the appraisal with his or her tax return or if the appraisal does not meet the specific criteria for a “qualified appraisal,” the donor cannot deduct the contribution. The qualified appraisal and qualified appraiser rules impose high standards that are extremely specific. Care should be taken to ensure the appraisal and appraiser meet these standards. Additional resources: http://www.azdor.gov/About/FAQs/QualifyingCharitableOrganization.aspx http://charitylawyerblog.com/2010/03/30/abuse-of-charitable-organizations-and-deductions-included-in-2010-dirty-dozen-tax-scams/ - Categories - Acquisition(2) - Annual Reports(2) - Application for Exemption(9) - Arizona Corporation Commission(2) - Arizona Nonprofit Corporations(5) - Arizona Nonprofit Lawyer(3) - Articles(5) - Audits and Examinations(1) - B-Corp.(1) - Benefit Corporation(3) - Board Chair(1) - Book Review (3) - Business Judgment Rule(2) - Bylaws(7) - Carter Law Group(5) - Cell Phone Rules(1) - Charity Raffles(1) - Charleston Principles(1) - Charter Schools(1) - Collaboration (5) - Commensurate Test(1) - Commerciality Doctrine(1) - Compensation Setting Procedures(4) - Conflicts of Interest(1) - Directors and Officers Insurance(2) - Donor Advised Fund(1) - Donor Issues (2) - Donor Restrictions(2) - Economic Development(1) - Endowment (2) - Ex-Officio Directors(1) - Excess Benefit Transactions(2) - Executive Committees(1) - Feeder Organization(1) end excerpt: *Any suggestions, ideas, or?*