Odd Inquiry About Charity Donations

[PhillyChik]

Say a provider wanted to accept monies for philanthropical endeavors--homelessness, cancer, whathaveyou--how does one secure faith on more than word alone that proceeds are rightfully handled? Also, could such be seized if the notion arose that all were obtained under events not yet permissible? Also, if a small foundation of sorts were created, could this also be under legal scrutiny, even if that were completely by the book?

For arguments sake, let's say a successful provider started a .org, totally legit. Could that ever be seized and all donations forfeited, even as a search for discovery, or whatever the legal parameters are? Just curious. Would be nice to give back, but not if a black eye were possible--no one wants to fear giving to a cause, right? Or increasing negative views of this "hobby" we all love.....

[Unique_Carpenter]

Visit the internet web site for the Pennsylvania Secretary of State’s office and look up their requirements for creating a non-profit organization that must be registered with them (other states have similar requirements). And, you will need to submit a non-profit application to the Internal Revenue Service and wait for their approval, at least several months nowadays.
Without becoming a formal charitable organization (the two items above), donations are not tax deductible to the original donor. There may be other requirements. Some states require filings with the State Attorney General Office. All states have a requirement to file with their Department of Revenue to obtain a tax exemption certificate if the organization wants to be exempt from sales taxes on supplies it buys for its office.
Note that a formal business organization will be created and as soon as created, due to having a required Board of Directors, you may lose control rather quickly. Note that everyone on the Board of Directors ends up getting listed sooner or later in the paperwork, which paperwork is all publically available.
I have never seen a single person controlled entity get approved.
In that the organization is not (cannot be) controlled by a single person, it is a totally separate entity and is not owned by anyone. Thus, there's nothing for that person to actually lose. Some organizations appear to have a single person running things. But in those cases, a "quiet" Board of Directors is supporting that person. Of course, if any organization itself is thought to be doing something that attracts attention, that organization can have its own issues. At which point charitable orgs usually collapse cause donors cease making donations. But any organization can be sized if some authoritative agency has a mind to. Last, if someone has legal issues and is a key person in an organization, the organization may also get looked at, even if it's "clean". As I mentioned above, orgs collapse if their donors stop contributing so where would the funds come from for defending itself?

Of course, you yourself can always simply contribute as an individual to any worthwhile cause.