Quote:
Originally Posted by retiredguy123
You don't need to create a false charity. A legal one will do just fine. I read a lot of IRS Form 990's filed by charities. One that stands out was a charity created to sound like the well known "Make a Wish" charity. It is a common tactic to make the charity name sound like a well known charity. They collected almost $500K in one year. The CEO collected a salary of $200K, his wife, the vice President, collected $150K and his mother-in-law collected $100K as the treasurer. So, almost all income went to three people. The charity owned two condos at Disney World, and they would allow a sick child and their family to use one of the condos for a few weeks each year. For the rest of the year, they used the condos for themselves. They raised the money by hiring telemarketers, who received 80 percent of whatever donations they collected. I know this because the naive telemarketer who called me told me how much she would receive if I donated. This was not a false charity. As long as they provided a free vacation to a sick child, as stated in their mission statement, it was all legal. So, the problem is with our extremely lax laws for creating and operating charities. If a charity has a legitimate mission statement, and follows the IRS reporting rules, they have no obligation to be efficient or to spend the money wisely. Wasting taxpayer money in a charity is not illegal.
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I always assume you know what you are talking about when it comes to this kind of stuff, retiredguy123…….and , as usual, you just stated the facts here……
But, wow, this sure is a creepy loophole, not only on the backs of taxpayers, but shamelessly on the backs of sick children — and other targets, too, of course.
There certainly is a whole lot of slime slithering around through those loopholes. (shudder)
And yet, the much repeated marching orders, to be carried forth by those easily programmed to think the increasing of IRS staffing is after the middle class, were immediately planted in the minds and mouths of those who never look for the agenda behind such statements.
The firing up of ire and paranoia is being done by those who have their reasons for wanting things to stay as they are — with no accounting for accounting.
Back to the SECURE Act, passed in 2019, btw…..so…….
Helloooooo, that one is after the middle class who worked to fund those IRAs and using them up while alive can lead to being between-a-rock-and-a-hard-place with those caveats wisely listed by another poster in this thread. (Whoops, I intended to quote that poster, too, buy, hey, it’s a short thread now, so please go find that other post here, if interested, before you unnecessarily screw up your Medicare costs or your tax brackets.)
Boomer