- quote -

A charity will *have* 501(c)(3) status if it has submitted
an application to the IRS, and has been informed by the IRS
that the application has been accepted. Any potential
contributor should be able to get a copy of that.

By the way, just because it's a qualified nonprofit doesn't
mean it's not a scam. I once gave money to a nonprofit that
solicited me, the money to be used for a specific purpose
like buying concert tickets for poor kids. But they took
the money and ran, and the kids never got either money or
tickets.

Stu

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- quote -

If it has 501(c)3 status, then contributions are deductible.
If it merely _claims_ 510(c)3 status, you're better off
checking with the government as to whether or not that claim
is correct.

- quote -

If they get goods or services in return for their donations,
the value of those goods or services is non-deductible.
(For instance, if you donate $2,000 to Carnegie Hall in
their membership program, they'll give you some free tickets
and a letter stating that $1800 (or so) of your contribution
is tax-deductible.)

Seth

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Phil Marti <philmarti[at]aol.com> wrote:
- quote -

Not quite: the borrower would then have been unable to
secure a mortgage. (Genesis seems to be skirting close to
the edge of fraud here, but presumably the lenders are aware
of what it does and allow it.)

Seth

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sethb[at]panix.com (Seth Breidbart) wrote:
- quote -

A search of the IRS's Publication 78 (list of organizations
eligible to receive tax-deductible contributions under IRC
Sec. 170) doesn't turn up this entity. And as Seth pointed
out, their web site doesn't suggest that the seller's
contribution to the organization is tax deductible.

Katie in San Diego
The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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- quote -

can you tell if a charity qualifies as a charitable
contribution for taxes? it seems some organizations claim
you can deduct donations or "501(c)3" status but look
questionable, for example "canine therapy" where people tak
e their dogs to hospitals for the benefit of the patients

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Aine Branwen wrote:
- quote -

Not all non-profit entities qualify to have donations to it
count as charitable contributions.

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Aine Branwen wrote:
- quote -

This agreement is so transparent that it smacks of fraud
against a federally-insured lender!

You clearly did not make a gift. The common situation would
be you sold your house for $(x + y) and paid GHD $(y + 300).
This allowed the buyer to get a mortgage for $x claiming to
have made a down payment of $y, i.e., zero equity. If you
wanted $x for your house, then only the mortgage company
got scammed.

Dick
--
Richard D. Adams, CPA

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midcendeb[at]yahoo.com (Aine Branwen) writes:

- quote -

Not in my book. Whenever you see any version of "to give"
in quotes, you can be sure someone's up to something. You
didn't make a donation to Genesis, you paid $X of the
buyer's closing costs. You could have saved $300 by leaving
Genesis out of the process. There's no charitable
contribution here, just a reduction in sale proceeds and,
hopefully, a lesson for lurkers.

Phil Marti
Topeka, KS

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midcendeb[at]yahoo.com (Aine Branwen) wrote
- quote -

If the payment is required, or even if not required but is
considered to be in exchange for anything of equivalent
value, it is not deductible as a charitable contribution.
It doesn't matter what their status is.

Stu

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sethb[at]panix.com (Seth Breidbart) wrote:
- quote -

Thank you Seth, Genesis Housing Development is a non-profit
corporation. I have a letter of agreement from them. It
states that I paid a "service fee" to them which includes
the "gift amount" plus about $300.00. I also have a letter
from them which verifies their non profit status and
acknowledges their donation to the buyers came from
pre-exisitng funds and not from my gift. I do not have a
letter which specifically states what the deductable portion
of my contribution is. Would that be the "gift amount"?

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Harlan Lunsford <hlunsfordns[at]bellsouth.net> wrote:

- quote -

Nope; I didn't see anything about the "contribution" to
Genesis being tax-deductible to the seller.

(Now, if I were the lender, I wouldn't like that sort of
finagling.)

Seth

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Aine Branwen wrote:

- quote -

Never heard of this Genesis program, but...... it sure
sounds like a scheme to make otherwise non deductible costs
deductible.

I wonder what IRS knows or would say about such a finagle?

Cheer$,
Harlan Lunsford, EA n LA

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Aine Branwen wrote:

- quote -

This is not an answer to OP's question, but the URL to the
web site for Genesis:

http://www.thegenesisprogram.org/highlights.cfm

Does this sound too good to be true?

Cheer$,
Harlan Lunsford, EA n LA

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Aine Branwen <midcendeb[at]yahoo.com> wrote:

- quote -

What is the tax status of the Genesis organization? If it's
such that contributions to it are deductible, then it should
provide you with a letter giving the deductible amount of
your contribution. Without such a letter, even if your
contribution is deductible, the deduction is limited to a
rather small amount (relative to house sale prices).

Seth

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midcendeb[at]yahoo.com (Aine Branwen) writes:

- quote -

This is the second time I've heard of this type of thing,
and it still sounds to me like it was just seller-paid costs
plus, perhaps, a reduction in price. I don't see anything
charitable about it.

Phil Marti
Topeka, KS

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Last year I sold a home using the Genesis program. Genesis
donated the money for the down payment and closing costs to
the buyer, and at closing I donated a similar amount to
Genesis. The agreement states that money donated to the
buyer came from pre-existing funds and not from my gift. I
was told at the time that a portion of my donation was tax
deductable. No one could tell me what that portion was or
how to calculate it. I have a very straight forward tax
return otherwise, but no idea how to handle this.

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