<me[at]helpmefigurethisout.com> wrote:

- quote -

I'd like to know what IRS Pub says that, because the correct
pub doesen't say that either, but a highly technical read to
deduce the answer!

You will become a disqualifying contributor, meaning you
fall under restrictive private foundation rules to prevent a
sham. Even if you avoided that with a much smaller % of
total contributions, you still have the IRS approval
problem. You must propose how the org will be structured, a
real independent board of directors, how the research will
be done and by whom. You must solicit donations from the
general public, any one of whom might take you before Judge
Judy if he finds out the guy asking for the money is the
only one doing the research.

Fred F.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Let's say I had a sole proprietorship that earned me
$500,000 taxable income per year, with $250,000 remaining
after taxes. Then I decided I would like to begin doing
non-profit scientific research that is completely unrelated
to this sole proprietorship. So, I set aside $200,000 of my
after tax income per year with the goal of opening up a lab
and buying equipment within 3-4 years. But it would be much
quicker if I could save $450,000 (i.e. remaining income
before taxes) per year. Would it be possible to set up a non
profit organization so that I could "donate" most of my
taxable income to this research? My initial reading of the
IRS publications indicates that this would not be allowed.
But there are many potential applications of the research
including cancer and alzheimers, does that count for
anything?

This is all hypothetical, I do not make anywhere near
$500,000 per year.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >