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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.


In the case you describe, the foundation isn't paying my Exxon credit card bill for me. THAT would NOT be deductible. But if they're paying Exxon for gas for a fleet of minivans for a sheltered workshop they operate, that's different. And if that is what my contribution to the foundation is for, that is deductible.

It's because of people pulling tricks like that, that charities are required to put that verbiage about "No goods or services were provided in exchange for this contribution," etc.

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