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Do non-profits have to pay an income tax on the donations they receive?

2007-11-13 18:33:46 · 3 answers · asked by swollen_goat 2 in Business & Finance Taxes United States

Any suggestions on where I can read up on all of this?

2007-11-13 18:35:11 · update #1

3 answers

i dont have a source link. but NGOs(non profit organization) does not pay taxes because donations are not income or profit. Donations will be used according those NGOs needs and means. however,e.g ..if u work for NGO and get paid , u have to pay taxes..not the NGO.

2007-11-13 18:51:02 · answer #1 · answered by StevieGtheBest 1 · 0 0

If non-profits have income outside the scope of their non-profit charter that income is taxable. Non-profit does not mean no income. It means that any profits are not used for the personal enrichment of the owners or operators of the organization, but to further the goals of the organization. Non-profits include churches and traditional 501(c)3 charities but also other organizations such as political parties and fraternal orders. Donations to the latter are generally not tax deductible.

Churches are exempt under the concept of separation of church and state. The funds that the church collects are not subject to taxation but the wages paid to ministers ARE subject to taxation unless they are members of an order that has taken a vow of poverty and their wages are turned over to the church. Additionally members of certain orders that eschew acceptance of insurance funds and public support MAY be exempted from Social Security and Medicare taxes. Some Mennonite and Amish groups fall into that category.

2007-11-14 06:49:01 · answer #2 · answered by Bostonian In MO 7 · 1 0

Catholic cardinals are mostly multi- billionaires, even though they sworn a vow of poverty, so, there must be a kickback system within the one world order system. Can we make a non incorporated not for profit church of the bread of the body of Christ & bless each loaf that we receive a "donation" for (not "sell") as we don't really want to call it a bakery; the Catholics pass the basket for donations but are not "selling" those little wafers for a "profit"nor the grape juice, but receive a blessing for a blessing given in the form of money.. It sounds as fair as what they do eh?

2014-11-30 15:11:20 · answer #3 · answered by Mark “the painter” 1 · 0 0

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