Client with a good heart

Client contacted me and asked about setting up a charitable fund that will provide foods for the needy people in times of the pandemic. He plans to take donations from other people and use the money 100% on buying foods for the people who need help.

We have two questions:

(1) I think he has to set up a non-profit organization if the donors want to claim tax deduction on their donation. Or is there a simpler way without having to set up a non-profit organization?

(2) He will not mix the donations with his own money. I think he will open a specific account for the project. Are there other things that he will need to do or pay attention to in order to make sure none of the donation will be considered income to himself?

Thank you.

I’d say he’s much better off simply going to his local food bank or house of worship, and asking them to help him set up a specific fund drive. No need for him to set up his own non-profit unless he intends to keep it open for many years to come. Way too much administration and applications to go through in my opinion.... And when he goes to shut it down, he will have to clear everything potentially with his state Attorney General’s office.

Amen, Henry David!

https://nonprofitquarterly.org/fiscal-s ... t=25388277

https://www.councilofnonprofits.org/too ... nonprofits

Find a 50p1(c)3 organization that does that job and give them the money. They will be more productive with it that he will so more people will get fed and he won't have to listen to sob stories.