tailieunhanh - A Charity’s Guide to Car

A single solar cell is able to produce only a small amount of electricity. But solar cells can be connected together on a multi-cell panel to produce larger amounts of electricity. As with batteries, the more cells that are connected to one another, the greater the current of electricity that can be produced. 1 Solar panels can produce enough electricity to power satellites, recreational vehicles, and equipment for other applications where electricity is used in large amounts. For this project, you will be using the electricity from solar panels to power a small car. Your challenge will be. | A Charity s Guide to harities described M. J If section 501 c 3 of the Internal Revenue Code need funds to operate their charitable educational or other tax-exempt programs. These charities may choose from a number of fundraising activities for financial support. An increasingly popular fundraising program is the sale of donated cars. Through this Publication 4302 the Internal Revenue Service IRS and state charity officials provide general guidelines for charities operating car donation programs. The information in this publication applies to the most common types of section 501 c 3 organizations commonly referred to as charities. A companion brochure Publication 4303 A Donor s Guide to Car Donations provides guidelines for individuals who donate cars. Tax-Exempt Status and Deductible Contributions How a charity operates a car donation program may have tax consequences. The program can affect a charity s exempt status and impact the tax-deductibility of the donor s contribution. 1 TAX-EXEMPT STATUS A charity must be organized and operated exclusively for one or more exempt purposes described in section 501 c 3 . If a charity operates a car donation program in a manner that confers improper benefits on private parties the charity s exemption may be adversely affected. If the charity loses its exemption its income is subject to tax and it must file the appropriate federal income tax return generally Form 1120 for corporations or Form 1041 for trusts . TAX-DEDUCTIBLE CONTRIBUTIONS - In order to be deductible a donation must be made to a charity that has full control and discretion over the disposition or use of the donation. Note Taxpayers may only deduct contributions to charity if they itemize their deductions. Types of Car Donation Programs and Their Impacts on Tax-Exempt Status and Deductibility This section identifies four common types of car donation programs and the tax consequences for a charity and its contributors. CHARITY USES OR DISTRIBUTES CARS - The .