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Syndicates on the Loose

 

Begging for money

Begging for money

Syndicate

Syndicate

Charitable giving does not always have to be in an institution, people have always been asking for help on the streets, on the train stations, actually they are everywhere scattered all over the city and we pass by them all the time. Sometimes it is hard giving out a hand especially when one reads about the rumours of how syndicates are using the beggars or people who have no money to ask for money on the streets and at the end of every night these syndicates collect all the money everyone has got to buy them food and keep the extra money for themselves. It is sad to hear that people still take advantage of the poor and use them for their own benefit, threaten them when they do not follow. On a personal note, I’ve heard that those who are actually amputated or blind or whatever deficiencies they have, it has been said that they are gangs responsible for this, that they are being imperfect physically on purpose so that people pity them and going to give some money. It is their way of attracting the gallant and the kind and soft hearted to give money even if it is against their will because the human nature is that people are still helpful. It would not be much of a drag when people donate small amounts or even coins since these sums up to quite a value when gathered all together. It is good to help people out but thinking about these rumours, when one gives, tendency is the syndicates think that their plan is actually working and that they are successful in their modus operandi. And we would not want to support this illegal doing now would we? And it is a dilemma on what one will do, but there are always prayers. What I do is that I donate to the poor or beggars on the street or anywhere since it gives you a good deed helping out, it feels good deep inside knowing you did a good thing, then afterwards I pray that the money I have given goes to a good purpose, and not the illegal ones. Also, I pray for the beggars who sometimes are not given options since they are being threatened or their families are being threatened, I hope for the awakening of this people to stop the wrong doings they are committing and think about other ways to earn, legal and proper ways.

 

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Rich? Please Fully Pay Taxes

Many rich people who have to pay taxes opt to pay via donating large amounts of cash to charities instead of paying the full amount of their taxes, because donating to charities provides a reduction to what they have to pay for in taxes. Believe it or not, this affects our economy, especially if those who get tax reductions are extremely rich, and whose money would benefit the government more than it would charities.

Why the Rich in Particular?

Tax loophole

Understand that the rich are placed in higher brackets to pay for tax, giving to charities usually decreases what they have to pay in taxes overall. If they’re earning a lot, they can get a chunk of the taxes that they’re paying back – and that could be a hefty amount, depending on how rich the person we’re talking about is, thus making donating to charity a better option… Plus, philanthropy makes them look good.

Charity Scam

We really hope that charities do make the most out of what they receive.

For the sneaky and super rich, they can create the charities themselves and donate to them, while making sure that what they’ve donated to that charity won’t be spent – because they own it themselves. There is no law that forces charities or non-profit organizations to spend everything that is donated to them. So if a billionaire donates a vast property to a charity that his/her brother, son, or daughter owns, that charity does not have to be accountable to taxes that they should be paying for had it not been donated.

Left to Fend

The reason why we push for the rich to pay in full taxes is because they can afford to. It’s obvious that they pay charities so they save more overall – but the country needs it. What ends up happening is that those who are poorer keep paying up, which contributes largely to society, while rich families try to get away with paying less than they should to the state – to charities that they pick themselves.

Is it right that the rich get to say where the money that should have gone to taxes goes to? They can decide to fund a charity of their choice while what could have gone to parks, education, roads, and government programs that help develop society in general go to weigh on those who dutifully pay their taxes. When you combine how much the rich could have (and should have) donated to the government but escaped because they paid it to charity, you’ll be surprised. So whose side are you on?

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The IRS tax tips

 

IRS 8283

IRS 8283

 

FORM 1040

FORM 1040

The IRS, a government agency in the US that focuses on the tax collections and the tax reinforcements, had made the lives of the citizens easy by compiling eight tips for the donors to assure them of their tax reductions. All in all there were eight tips that were provided. First off is that you must give to a qualified organization, and not to certain individuals or political organization or churches, for-profit schools or hospitals, fines or penalties that pay to state governments or even local ones, foreign governments, etc. The next tip is to sign or file a form 1040, it is mandatory for the reductions to be valid. Also, to itemize each donation for the corresponding tax reduction to happen. It is a one page form that asks about medical and dental expense, the taxes you paid, the interest you paid, the gifts to charity, casualty and theft losses, job expenses and certain miscellaneous deductions, other miscellaneous deduction and the total itemized deductions, again this is to help you reduce your tax bill that is why it requires detailed information. If you happen to have other deductions for tax or discounts, you can only deduct the fee that surpasses the market value of the value obtained; this is to not get too much tax reduction.

Regarding the stocks or the non –cash property donations, they are usually priced at fair market price as well. One can also donate certain clothes or household stuff; however, it requires a good condition and should be assessed first to check if it is still of value, strict rules apply here, and vehicle donations have their own set of rules as well to be valid. The fair market value price that is being considered is one wherein both parties would agree of the price. It is not based on some law but rather based on the decision of the buyer and the seller. Regarding the money donations or related to it, monetary gifts or checks or cash donations, the bank will be included for formality’s sake. They must be able to provide a bank record and a payroll deduction record or written communication from the concerned organization to be valid. And for text donations, telephone bills will meet the requirements together with the required details.

When the donation reaches or exceeds $250, requests are stricter and the requirement is that you should have a bank record or a payroll deduction record or written acknowledgement from the organization you donated to. Included there is whether you got something in return for that donation you made or it was a strictly one sided giving. And if the total donation reaches or exceeds $500, a new form, the IRS 8283 form is already required, or the non-cash charitable contribution. And for those payers donating more than $5000, they would also need to fill up the form B of the IRS 8283 wherein it requires an appraiser already.

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