Charitable Contribution Tax Question

[GotIssues]

I'm looking for clarification about tax write-offs and the like.

So, my sister-in-law's brother has some rare genetic disorder that attacks the kidneys and eventually destroys them. Currently, he's on dialysis and trying to raise money for a kidney transplant, and they want gobs of money before they do it. Unfortunately, it's quite a financial burden that most people can't do by themselves. It's particularly painful for her because my nephew has the same disorder, and she was the carrier for it. I'd like to be able to help out so that she doesn't have to go through it, at least not for 20+ more years. They have set up a bank account and going to have some fundraisers over the summer to try and fill out the financial requirements for the transplant.

My wife and I do fairly well, and are looking to donate a significant amount of money toward the procedure, but what I want to know is: what would qualify for a tax write-off as a charitable contribution? Now, I'm not some evil monster trying to keep money in my pocket, I actually want to know so that I can put more in (basically, for every $1 we want to put in, I want to put in $1 / (1 - tax bracket &#37 )

I am not asking for any donations, I am looking for advice so that I can help get it set up to be as advantageous for their efforts as possible. If there are requirements for the contribution (like making it a charity or some other legal stuff), I'd appreciate a point in the right direction so I can help them out a little on the logistical side of things. Any help would be greatly appreciated.

 

[EagleKeeper]

Unless there is a organization that is setup as a charity, you are out of luck in that regard.

Inlaws can be claimed as dependents based on their financial profile and you support.
If you were to arrange to claim the inlaw as a dependent; then you could write off on the 1040 the medical costs spent for the procedure.

Another option would be to talk to the hospital where the procedure would be done. A "donation" to the hospital might be in order.

 

[Ns1]

tell your SIL BRO to setup a 501c

 

[Atomic Playboy]

You'd need to establish a 501(c)(3) non-profit organization that you could make tax-deductible donations to. However, if the entirety of the non-profit organization's money is used to help a family member, the 501(c)(3) status would be revoked and there would be significant auditing by the IRS, and very likely charges of tax evasion. Non-profit organizations really can't exist solely to serve one individual; it defeats the purpose.

You might be able to set up a charitable trust, which can be used to give money to a single individual. However, these are usually set up based around some pre-determined timeline, and it's unclear when exactly you will need to use the money. Your best bet is to talk to a tax attorney about your options; there's almost certainly some way that you'll be able to pay towards your nephew's surgery in a tax-deductible fashion, but you want to ensure that it's all legal and above board to avoid an audit and potential charges of fraud. Don't skimp on something like this; get expert advice.

 

[GotIssues]

Thanks for the help.

It pretty much sounds like I'm out of luck, unless we can talk to the hospital (which we don't know when or where the transplant would be done). I suppose the next step is to look at that charitable trust angle to see if that would be an option. Thanks for pointing me in the (hopefully right) direction I need to go. I was thinking about going to talk to a Tax Attorney, but I didn't want to go in blind, this at least gives me an idea.