Theos-Talk Archives (May 1997 Message tl00464)

apriorip@earthlink.net wrote:
>
> Hello Scott,
>
> Excellent issue about taxes:
>
> + It is my understanding of the current tax code that, should an
> + organization "charge" for a function, the funds collected become
> + taxable.  If the same function is financed by "donations," no
> + tax liability accrues.  In the former case, the organization's
> + tax-exempt status might come up for investigation; in the latter,
> + the question does not arise, nor would it arise if the function
> + were gratis.  If my understanding is incorrect, I welcome
> + correction.

	I didn't notice Scott's original posting, so I am responding to the
quote.

	For a religious organization in New York State, they are allowed to
charge for some things, but they must have regular meetings for which
there is no charge. Donations may be taken, and even suggested, but
there must be nothing resembling coercion, meaning that the donations
cannot be a thinly veiled fee.

	Bart Lidofsky