Can a non-charity entity raise funds (accept donations) for a cause and send to an individual (not a charity/non-profit organization) in another country who works for that cause? Is this legal in California?
Can I as a non-charity entity accept donations on behalf of an individual (not a charity/non-profit organization) in another country and send it to that person? 100% of donation I receive is to be sent and the donors clearly understand that their donation will be sent to individual in another country.
from the information that you provided, it does seem possible to collect the money and forward it. however, you will have to file a tax return on the money since you are presumably depositing it into a US bank account. The best approach would be to collect the money in another country
Charitable donations may be mad only to the US IRC 501(c)(3) and its FTB T R&TC Section 23701d (I believe it is) approved entities. For foreign donations, you should contact the IRS non-profit section in Cincinnati, and the FTB for the appropriate entity. I used to handle some of their financial aspects in the past and always used to write to their Board warning them of the potential consequences of misappropriation of funds overseas, which have strict limitation as to who the recipients may be. This may be potentially dangerous venture and you must be extra cautious. Some of these funds may end up in the hands of wrong groups or individuals. I had a potential client who wanted to establish such an entity here to transfer the funds to a foreign country with paying taxes on. When I advised him that I have to research the legality of it, he backed out and did not want to pay my fee. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a local counsel. Good luck. Zaher Fallahi, Tax Attorney, CPA, MBA, MS, JD.
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