Mozilla Foundation Donations Now Tax-Deductible
Friday August 29th, 2003
Via an arrangement with the Open Source Applications Foundation, donations to the Mozilla Foundation are now tax-deductible under IRC Section 501(c)(3) of the United States tax code. The Mozilla Foundation does not yet have the required certification for exemption under 501(c)(3) but OSAF does. Essentially, you send your donation to OSAF and they then pass it all on to the Mozilla Foundation. More information is available on the donations page.
#7 Very risky
Saturday August 30th, 2003 8:44 PM
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Firstly, sec. 501(c)(3) just makes the charity itself tax-exempt and does not mention the deductibility of contributions. The deductibility of contributions is from a completely different subchapter, in sec. 170(c). It's just that the two sections happen to describe mostly the same organizations.
Mozilla.org describes OSAF as acting as its "fiscal agent." Since the funds are, in substance, donated to it, merely passing through OSAF's hands, it is not proper to claim the sec. 170 deduction for these contributions.
Moreover, OSAF is putting in jeopardy its own qualification for sec. 170(c) and 501(c)(3) status. And, normally, deductions for donations to an organization previously recognized as qualifying under sec. 170(c) do not put the donor at risk, but that does not apply to donors who participated in the disqualifying acts.
If you claim a deduction for these donations, you are probably committing tax fraud.