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Wikipedia’s nonprofit status questioned by D.C. U.S. attorney

(www.washingtonpost.com)
754 points coloneltcb | 1 comments | 25 Apr 25 23:03 UTC | HN request time: 0s | source
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vFunct ◴[26 Apr 25 00:46 UTC] No.43799903[source]▶
I have a question on non-profits in general. What exactly is the advantage of being incorporated as a non-profit, when all you have to do to not be taxed as a for-profit corporation is spend all your money each year and not show any profit? It seems you'd have more privacy as a for-profit corporation, since you don't have to disclose donors.
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hollerith ◴[26 Apr 25 00:50 UTC] No.43799922[source]▶
If I donate to a 501(c)(3) organization, the donation gets very favorable treatment by the tax code, reducing my taxes (provided I have income that can be cancelled out by the donation).
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0x457 ◴[26 Apr 25 01:47 UTC] No.43800190[source]▶
hmm, please correct me if I'm wrong, but donations just decrease your tax liability by the amount you've donated. It's the same as if you donated your pre-tax dollars to 501(c)(3) org.
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1. toast0 ◴[26 Apr 25 03:20 UTC] No.43800640{4}[source]▶
The second sentence is mostly accurate, but the first implies something else.

If your taxable income was $50,000 and you donate $10,000, and (some other conditions) your taxable income would now be $40,000; same as if you managed to move the money pre-tax.

However. If you donate aprechiated capital assets, you get two benefits. Your taxable income is offset by the value of the asset, and the capital gains disappear. It's much better than selling the asset and donating the proceeds; and it's handy if you don't have good records for your cost basis.