swap contributions

[guilford1950]

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

we are a community organization. another community organization is interested in swapping checks with us. We would make a contribution to their operating account (for the use of their facilities to hold a picnic) and they will give us a check in like amount from their "charity" account. They have two accounts and are not permitted to transfer funds between them and they need to make some building repairs but the operating account is near depleted.

There is no tax issue for us but this somehow seems a sham transaction

 

[LdiJ]

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

we are a community organization. another community organization is interested in swapping checks with us. We would make a contribution to their operating account (for the use of their facilities to hold a picnic) and they will give us a check in like amount from their "charity" account. They have two accounts and are not permitted to transfer funds between them and they need to make some building repairs but the operating account is near depleted.

There is no tax issue for us but this somehow seems a sham transaction

It seems really shaky to me. I don't think that I would want to get involved.

 

[tranquility]

Depending on why they cannot transfer between the accounts, you could be criminally liable for fraud.