Charity and Business

[rsilvetz]

The following proposal has been made and I believe it is illegal but cannot get a firm answer anywhere.

1. Charity takes $5 million donation from X, X gets a tax writeoff
2. Business Z is given a $5 million grant
3. Business Z gives X a $500K per month payout out of running revenues starting 2 years out for several years

Thank you for your time folks.What is the name of your state (only U.S. law)?

 

[tranquility]

There is no way to tell with such simplistic facts. The result could certainly happen through proper arraingement of gifts, discounts and trusts.

 

[rsilvetz]

The charity is Canadian and invests in cancer research, the business is a Panamanian clinic operating in the field of cancer, the investor is most likely a US citizen.

What worries me is the quid-pro-quo that's happening where the investor is making out twice, once in the tax receipt and once off the clinic. Somehow this feels to me like it is skirting the intent of charity law. Clearly the investor would not donate to the charity without the 100% recovery of capital originating out of the clinic.

 

[HomeGuru]

The following proposal has been made and I believe it is illegal but cannot get a firm answer anywhere.

1. Charity takes $5 million donation from X, X gets a tax writeoff
2. Business Z is given a $5 million grant
3. Business Z gives X a $500K per month payout out of running revenues starting 2 years out for several years

Thank you for your time folks.What is the name of your state (only U.S. law)?

**A: you never asked a question and even if you did this website is for US Law only.

 

[rsilvetz]

The question is -- Is the arrangement illegal, e.g. a violation of charity law or securities exchange, for the US investor?

Which is defacto a question of US law. The investor is benefiting twice in a way that clearly violates the spirit of charity law.

 

[HomeGuru]

The question is -- Is the arrangement illegal, e.g. a violation of charity law or securities exchange, for the US investor?

Which is defacto a question of US law. The investor is benefiting twice in a way that clearly violates the spirit of charity law.

**A: my response stands. And your defacto issue is lame.

 

[rsilvetz]

HomeGuru if you have nothing constructive to add why waste both our time?

Move on and let someone who does realize that US investors are subject to US law in regards to securities and charity and their worldwide income answer?