"Mike" <littleboyblu87[at]yahoo.com> wrote:

- quote -

Probably Just personal gifts from you to them. Not
deductible by or taxable to the giftee. Do tou report your
birthday presents? Sucker!

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Barry Margolin wrote:
- quote -

But, if the small amounts total large sums and they are
deposited in a bank account they will start to get in radar
range. Professional criminals do not talk in public about
their activities.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Mike wrote:

- quote -

Yes.

In the case where "donations" are for certain costs, it might be alternatively
permissible to reduce those expenses instead of including the full amount of
the expense and the donation as separate items - like reimbursement (from the
pure accounting point of view). I'm certain that the IRS will think of the
structure set up by IRC 183 and demand both entries, complete with the 2% of
AGI floor screw factor on the expenses (should the activity actually have a
"profit").

The act of solicitation of an amount kind of kills off the character of it
being a gift.

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littleboyblu87[at]yahoo.com (Mike) wrote:

- quote -

It's income, and they're probably not tax-free
organizations, so I don't see why they wouldn't be required
to.

Whether they actually *do* report them is a totally
different matter. If they only get small amounts, they could
probably slide under the IRS's radar and get away with not
reporting.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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I see a lot of non-profit websites that ask for people to
make donations to help pay for webhosting costs. I've also
seen people who post on message boards asking for people to
make donations to their "happiness fund" which is just so
they can go out and buy beer.

Do the people receiving these donations have to report them
on their taxes? I can't seem to find any rules about that.

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