fund raiser

[worthspending]

What is the name of your state (only U.S. law)? Indiana

I am trying to help a single mom by doing some fund raising for her.

A large fast food chain has offered to help with a fund raiser to help this single mom.

The fast food chain requires a W-9 tax form.

The single mom does not have a Federal Tax ID, but, I do as I have an LLC.

The chain has agreed to use my information and give me a check, however, the money will really be going to the single mom. I'm simply going to donate it to her. I'm told this will be all tax free, however, I just want to ensure that I handle the transfer of money correctly.

1. fund raiser take place.
2. I receive a check and my Fed Tax ID is associated with this transaction.
3. I deposit the check into my business account.
4. I write a check to pay for building materials for the single mom.

What problems am I looking at?

 

[tranquility]

There is nothing tax free about your plan.

No one is getting a deduction for the money as it is not a charitable donation.

 

[LdiJ]

There is nothing tax free about your plan.

No one is getting a deduction for the money as it is not a charitable donation.

I agree...

You see people making gifts by sending money to a special bank account set up for victims of various tragedies. However, none of those gifts are tax deductible. They are simply non-taxable gifts.

The gift is going directly from the giver, to the individual.

However, by the fast food chain taking the money into their system, and then giving you a check, you create a problem for both the fast food chain, and for yourself. It ends up being taxable income to both of you, but a gift from you to the end recipient.

I don't know what kind of fundraiser is being done, but if there could be a way to have the money go directly to the recipient, from the givers that would resolve the problem.