I talked to the IRS, and they looked him up. Neither of the 2 companies are 501C3's. What does that mean?
Let's say I create a blogger blog that is a web site for a charity of sorts. Why, I could say I was feeding the poor. I could have buttons all over it that say donate, donate, donate. And, I don't have to be a charity. If I'm not a charity, the donations won't be tax deductible. Why would anybody want to contribute to such a charity, when there are so many legit charity's out there? Good question. I pretty much doubt that anybody would want to donate to such a thing.And it all works fine until somebody asks for the paperwork associated with making a donation to a charity that actually is a charity. 2 possibilities, you simply never get the paperwork, or you get phony paperwork. If phony paperwork is being passed out, that's a crime, and sooner or later the government will catch up with it, and then they will talk to EVERYBODY.
So back to the question of where do you get the designer tomatoes from? At the farmers market, when they're shutting it down for the day, some kid comes along and asks me to give him my unsold tomatoes, he'll give them to charity for me. Got a receipt for me kid, I'm going to want to write that donation off on my tax's. Now what happens? He either cuts me a receipt using someone's legit tax id number (a 501C3's), or he cuts me an invalid receipt that will get me audited if the tax people pick up on it, and the deduction for charity will be disallowed. What does he do with the stuff? Does anybody care? Can it be tracked?
If nobody cares where the tomatoes came from, who then will care where they went? The guy who grew them will care a lot! I've sold at the farmers market before, the vendors are a real close knit bunch. If one of them finds out about such a thing, it will be around the square faster than you can walk around the square.
Tuesday, September 28, 2010
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