Lodge charity tax deductible?

Discussion in 'General Freemasonry Discussion' started by tbone1321, Jul 12, 2011.

  1. tbone1321

    tbone1321 Premium Member

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    Any brother know if there is a way to take donations for the lodge and be able to make it tax deductible?
     
  2. cemab4y

    cemab4y Premium Member

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    The procedure is simple. You set up a "foundation", and incorporate it as a non-profit corporation. You register the non-profit corporation with your state government. You register the non-profit corporation as a 501c(3) corporation with the Internal Revenue Service (Federal). Then you can donate to the corporation, and all of the donations are tax-deductible.

    Consult a tax attorney for the specific details.
     
    Last edited: Jul 13, 2011
  3. tbone1321

    tbone1321 Premium Member

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    but how could you move the money into the lodge funds
     
  4. cemab4y

    cemab4y Premium Member

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    I am not an expert, you should consult a tax attorney. The procedure for transferring funds runs like this.

    Your non-profit corporation opens a bank account. Individuals can donate funds into the account. Your lodge can host a fund-raiser. The proceeds from the fund-raiser can go into the corporate account.

    The non-profit corporation can disburse (spend) any of the money in the account on projects, that are in accordance with applicable laws.

    Many lodges set up "temple associations", and other such entities, to enable Masons (and other persons) to contribute to Masonically-affiliated charities, and be eligible for a tax deduction. I suggest that you contact a nearby lodge, or other service club (Rotary, Lion, Civitan), and get some advice. Chances are that some organization in your community, has set up a non-profit foundation, to enable individuals to support their actvities, and get the tax deduction.
     
    Last edited: Jul 13, 2011
  5. Beathard

    Beathard Premium Member

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    Need to be careful. Texas lodges are not 501c3. The Grand Lodge is... Check with a CPA.
     
  6. cemab4y

    cemab4y Premium Member

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    Agreed. When you are dealing with the tax code, always be careful. Masonic lodges, are not 501(c)3 corporations. That is why your lodge dues are not tax-deductible. And when a lodge has a fund-raising project, like for a new carpet or roof, contributions are not tax-deductible. That is why many lodges (including my own), set up "temple associations" or some other "sidecar" corporation. That way the separate corporation can raise funds for college scholarships, etc, and contributions made to the separate corporation. are tax-deductible.
     
  7. tbone1321

    tbone1321 Premium Member

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    Thanks for the info any one know of a good CPA to talk to?
     
  8. Observer

    Observer Registered User

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    Also, financial reports must be filed with the IRS. I'm guessing this is at least annually, but it may be quarterly. I have heard of several "sidecars" that are facing major fines because the person who was supposed to file either became ill, forgot, or decided they did not need to do that (we all know that kind).
     
  9. tbone1321

    tbone1321 Premium Member

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    Thank you again brothers I appreciate the info
     

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