Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
A tax exempt corporation can give money to the gas company, the electric company, the sewer company, the water company. It can give money to a heating contractor, the snow plowing company, and so on. I suppose they are not gifts in the usual sense.

I didn't fully expand on what made me wonder about the tax-exempt aspect of giving to a for-profit company. For example, you give $1000 to Foundation X and you take a $1000 charitable donation deduction on your Schedule A.

Foundation X gives $100 of your money to Private For-Profit Corporation Z. It's as if you made a donation to that private company and got a tax deduction for it. That's what doesn't seem right. Normally you can't send a check to Exxon and deduct the amount, but apparently you can do it through a foundation.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.