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Mozilla Foundation Now IRS 501(c)(3) Approved

jesus_X writes "We at MozillaNews have discovered that the Mozilla Foundation is now officially 501(c)(3) approved by the IRS, meaning you can now deduct donations made directly to Mozilla.org from your income tax returns. This is separate from, and obviates the Open Source Applications Foundation donation method mentioned in August on MozillaZine."

116 comments

  1. Not good by Anonymous Coward · · Score: 1, Funny

    Do they really want such an intimate relationship with the Imperial Revenue Service?

    1. Re:Not good by Anonymous Coward · · Score: 1

      How can this be bad? It is more for the benefit of the donators anyway. If you don't want to give money to open source instead of the government then by all means donate to Bush. Meanwhile we can support something that is actually helping people...

    2. Re:Not good by Anonymous Coward · · Score: 0

      You're being naive. Tax money that is earmarked for starving children in third world countries rarely, if ever, makes it to those countries because they are ruled with dictators who would sooner squander the money on their own frivolities.

      Take Ethiopia, for example. The people there are starving. What most people don't know, however, is just how horrible the local government there is. The income tax rate is 90 percent of the national income! Is it any wonder the people live in destitution? They don't need our money. They need their own money, which is being stolen from them!

  2. Hah! by SeinJunkie · · Score: 5, Funny

    Let's see Microsoft do that!

    1. Re:Hah! by Last_Available_Usern · · Score: 1, Funny

      Well, they would, but it would likely cost them more to set up the paperwork then they would get in return donations :)

    2. Re:Hah! by Anonymous Coward · · Score: 5, Funny

      Actually IE users would use the tax code section that covers Gambling Losses.

    3. Re:Hah! by LostCluster · · Score: 1

      Only big winners would be able to take advantage of that. Gambling Losses are only deductable when there's Gambling Income from winning to offset. (At which point, you're claiming that you didn't just win the million by buying one lotto ticket, because you bought tickets all year...)

    4. Re:Hah! by donnyspi · · Score: 1

      I'm pretty sure the parent was just kidding...

    5. Re:Hah! by magefile · · Score: 3, Funny

      Good $DEITY, two tax attorneys in one thread? Wait, did I just violate some corollary to Godwin's law?

    6. Re:Hah! by ZipR · · Score: 2, Interesting

      Microsoft may not be 501(c)(3) approved, but they do get some nice tax breaks, which I'm sure help:
      Microsoft enjoyed more than $12 billion in total tax breaks over the past five years. In fact, Microsoft actually paid no tax at all in 1999, despite $12.3 billion in reported U.S. profits. Microsoft's tax rate for the past two years was only 1.8 percent on $21.9 billion in pretax U.S. profits.
      Taken from here: http://www.ctj.org/html/corp0402.htm

  3. This is great... by mp3LM · · Score: 5, Insightful

    I think this is going to make a lot more people donate, because it has double benefits.

    1. Re:This is great... by vk2 · · Score: 1

      Don't know how to count double but you can add one time more benefit to Mozilla if you employer also has a matching gift program like Bellsouth

      --
      No Sig for you.!
    2. Re:This is great... by Anonymous Coward · · Score: 0

      Score:5, Insightful for this amazingly elucidating remark?

    3. Re:This is great... by scottj · · Score: 1

      I completely agree. I typically only donate to charitable organizations that allow me to deduct the donation from my tax bill. I'm generous with my donations, but I'd like to get a little off of my taxes in return. It's very nice to know that I can now donate to the Moz Foundation in this manner.

      --
      .-.--
  4. A few more reviews needed! by Anonymous Coward · · Score: 1, Informative

    We need to get up to around 1,080 reviews on download.com (ie 1,000 more than there were before the campaign started). Currently at 1,040, so if you haven't done a review yet, please add one!

    http://www.download.com/3302-2356_4-10299359.html

    1. Re:A few more reviews needed! by Anonymous Coward · · Score: 0

      Hehe... he said 1040...

    2. Re:A few more reviews needed! by Anonymous Coward · · Score: 0

      Roger that, over and out. ;)

  5. All the cool people are doing it... by LostCluster · · Score: 5, Informative

    Roll calling a few of our other favorite groups...

    Free Software Foundation: Yep, say they're tax-deductable.
    Electronic Frontier Foundation: Yep, they say they have 501(c)(3) compliance.
    FreeBSD Foundation: Yep, section 2.5.1 on this page says they're tax-deductable too.

    Seems like it'll take some work to find an OSS-supporting group that can't accept tax deductable donations.

    1. Re:All the cool people are doing it... by RLiegh · · Score: 2, Informative
    2. Re:All the cool people are doing it... by Anonymous Coward · · Score: 1

      it'll take some work to find an OSS-supporting group that can't accept tax deductable donations.

      Hrmmm, not a GNU/Linux fork in the bunch.

    3. Re:All the cool people are doing it... by FooAtWFU · · Score: 5, Interesting

      Wikipedia is not... YET. (they're applying, however. At least, I think that's the status, anyway. From what I remember,

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    4. Re:All the cool people are doing it... by PepsiProgrammer · · Score: 1

      I work for a 501c3 non profit ISP.

      Im surprised it took the mozilla foundation this long to set one up. They are quite a bit bigger than my organization, but ours only took 6 months or so to get set up and recognized if I remember correctly (someone else was doing the paperwork)

      --
      "The United States has no right, no desire, and no intention to impose our form of government on anyone else." - Bush 05
    5. Re:All the cool people are doing it... by RussHart · · Score: 1

      Spot on - Not yet, but applying

    6. Re:All the cool people are doing it... by FooAtWFU · · Score: 1

      Yes. Incidentally, the latest on the Wikitech-L mailing list is the best way to put up a beg notice for all slashdot referrers. :) It seems a quick Javascript statement would get many people without breaking caching (and without caching, the servers would be more or less vaporized under the load...)

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
  6. I bought a shirt.... by croddy · · Score: 4, Funny
    I bought a t-shirt from mozillastore ... does that count?

    (fingers crossed)

    1. Re:I bought a shirt.... by LostCluster · · Score: 4, Informative

      Not usually. If you get something in return for what you paid, then you didn't make a donation. However, if the ammount you paid is dramatically more than the value of what you got in return, you can deduct the overage.

      So, how overpriced was the shirt?

    2. Re:I bought a shirt.... by Anonymous Coward · · Score: 1, Funny

      if the ammount you paid is dramatically more than the value of what you got in return, you can deduct the overage

      Hmmm...might want to deduct my ex-wife...

      Ring.............2 mo salary
      Wedding..........$25K
      Divorce..........$10K
      being free and
      clear of her.....PRICELESS!

    3. Re:I bought a shirt.... by fermion · · Score: 1

      My understanding is that if a premium is given in exchange for a donation, the premium has a fair market values (FMV) associated with it. The donor may deduct the value of the donation minus the FMV. Therefore, if the donation is in the form of a sale, the difference will reasonable be zero, which will also be the allowed deduction. IANATA, This is just a guess.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    4. Re:I bought a shirt.... by kabocox · · Score: 1

      Not usually. If you get something in return for what you paid, then you didn't make a donation. However, if the ammount you paid is dramatically more than the value of what you got in return, you can deduct the overage.

      Then does that mean that all those that downloaded and use Mozilla can't make a deduction because they got something (better software) in return?

      Or are you meaning any amount that we donate should be deductable because it is "free?"

      I'm confused.

    5. Re:I bought a shirt.... by LostCluster · · Score: 1

      Mozilla software is given away free, so anything you give them is purely voluntary and would be fully deductable. It's only when there's a quid-pro-quo exchange that there's an issue.

    6. Re:I bought a shirt.... by strike2867 · · Score: 2, Funny

      Actually you get dramatically more money in return, considering all those girls who won't date you for wearing it.

      --

      Vote for new mod!!! Score:-2,Imbecile
    7. Re:I bought a shirt.... by Anonymous Coward · · Score: 0

      LOL! sad, but true ;)

    8. Re:I bought a shirt.... by Anonymous Coward · · Score: 0

      $50 for a shirt, now thats an overpriced shirt!

      http://www.mozillastore.com/products/donations/50s hirt

  7. Very stupid question... by Midnight+Thunder · · Score: 4, Interesting

    At a business level, what is the technical difference between a non-profit organisation and a traditional business. Maybe better: to what extent can it non make a profit? Surely a non-profit organisation still needs to assure it has money in the bank and pay its employees.

    --
    Jumpstart the tartan drive.
    1. Re:Very stupid question... by mattjb0010 · · Score: 1

      Surely a non-profit organisation still needs to assure it has money in the bank and pay its employees.

      Yes, but a traditional business is supposed to also pay its shareholders / owners, ie make a profit instead of being non-profit.

    2. Re:Very stupid question... by afidel · · Score: 5, Informative

      Non-profit's typically have to burn off their cash within a year of aquiring it if it is not for a specific aproved capital function (like buying a new building to house the organization). There are also rules as to executive compensation (often flaunted) and other operational differences. But most importantly a not for profit entity can not go to the stock market for funds because they are not able to return the money to investors that they investors would be looking for.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    3. Re:Very stupid question... by marnargulus · · Score: 4, Informative

      Exemption Requiredments: none of the earnings of the organization may inure to any private shareholder or individual.
      it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates.
      The organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of an IRC Section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction.

      That is from www.irs.gov basically saying that:
      1: No making money for yourself.
      2: No political funding as a main purpose.

    4. Re:Very stupid question... by alexatrit · · Score: 4, Interesting

      Part of it is about the goals of the organization. It's easier to receive 501(C) status if you give back to the community, so to speak. Free publications, software groups, churches... these organizations provide something without expecting anything in return. They are allowed to report income and expeditures. This includes salary to the management of the organization. But at the end of the year, the books (in theory) shouldn't be too far in the black. Historically you're less likely to be sued as a 501(C) non-profit, since it's on the books that there isn't a lot of extra money floating around. There are tax benefits to incorporating as well.

      --

      Nothing but the finest in meaningless drivel
    5. Re:Very stupid question... by LostCluster · · Score: 4, Informative

      The key difference is that a non-profit doesn't have "owners" and therefore there's nowhere to send a dividend. When a non-profit makes more income than it's spending, they either have to spend more on whatever they do, or put the money in the bank for a rainy day.

      The IRS 501(c)(3) standard takes that definition a bit further to require that the non-profit must be doing something for the public good, rather than just giving money to the people who set it up. Here's the IRS.gov page on the matter.

    6. Re:Very stupid question... by ocknock · · Score: 1
      Non-profit's typically have to burn off their cash within a year of aquiring it if it is not for a specific aproved capital function (like buying a new building to house the organization).

      Non-profits have a variety of different revenue streams including membership dues, donations, and grants.
      Grants, which are typically given by foundations, often have a time period constraint, but they are not always one year. As an example, see the financial reporting guidelines given by the William and Flora Hewlett Foundation.
      Dues and membership fees, which might be burnt off in a year, are by no means required to do so unless stipulated by the donor.
      If I had enough money to give a large donation ($1 million USD) to a non-profit, one of my own contraints as a major donor would be that the non-profit NOT burn that money in a year.

    7. Re:Very stupid question... by perdu · · Score: 1
      The IRS 501(c)(3) standard takes that definition a bit further to require that the non-profit must be doing something for the public good, rather than just giving money to the people who set it up
      To clarify a bit: many non-profits aren't tax exempt, like a local social or hobby club. To be tax exempt you have to be an organized religion or provide some community service. Guess Mozilla claimed the former!

      --
      You only use 2% of your DNA
    8. Re:Very stupid question... by Hussman32 · · Score: 1

      Surely a non-profit organisation still needs to assure it has money in the bank and pay its employees.

      I work at a large non-profit, and the name is a bit of a misnomer. Non-profit doesn't mean that they don't want increased revenues, nor does it mean that the people working for them don't make considerable salaries. The CEO at my company (name intentionally omitted) makes over a million a year, and most of the technical workers earn six figures.

      As discussed, they have to spend all of their revenues, while allowing for some permanent assets. I freaked out the first time I heard the term 'spending goals'.

      But the goal is, as always, increased revenue like other corporations. Increased revenue usually means increased visibility in the industry you are supporting, increased work in your area, and increased salaries for those working.

      The main difference is that you are not allowed to compete in the marketplace, if you do so, you can lose your 501c status. This gets tricky, and frankly I don't understand the details, but I've had a ton of ideas shot down for that purpose.

      --
      "Who are you?" "No one of consequence." "I must know." "Get used to disappointment."
    9. Re:Very stupid question... by Stray7Xi · · Score: 1

      another poster linked to EFF being 501(c)(3)

      Wouldn't they have trouble with "it may not attempt to influence legislation as a substantial part of its activities"

    10. Re:Very stupid question... by Anonymous Coward · · Score: 0

      Since Microsoft constantly keeps its dividends for "growth", maybe they could file as a non-profit. Beats that pesky monopoly thing too.

    11. Re:Very stupid question... by nauticalsland · · Score: 1

      hello ?

    12. Re:Very stupid question... by marnargulus · · Score: 1

      No, the phrase "influence legislation" refers to the lobbying in congress, not to the legal defense of persons.

  8. Where does the money go? by Anonymous Coward · · Score: 5, Insightful

    WHen you donate to Mozilla, where does the money go, is it purely on the server, does any of it go to the programmers? Who decides where the money goes? If we donate money to them, can we get any say as to where it goes?

    1. Re:Where does the money go? by Anonymous Coward · · Score: 5, Informative

      Usually, it goes to whatever the folks running the Foundation want it to go to. Their expenses include servers, and also the programmers, and other staff.

      Doesn't look like they have anything set up for it, but in general with non-profits, you can restrict your donation. They either have to obey your condition, or refuse to accept the contribution.

      If you're giving them $10, then restricting it is just going to be a pain the arse, and cost more to administrate than your donation than it's worth. If you want to give a larger amount that's restricted, drop them a line (address is on the donations page) and ask.

    2. Re:Where does the money go? by ArchAngel21x · · Score: 1

      I have heard that when you donate money to an organization you can tell them that the money has to be used for (fill in the blank). Do not just take my word for it. Do some research, and I believe you will find that what I say is true.

    3. Re:Where does the money go? by alexatrit · · Score: 4, Informative

      Part of requesting 501(C) status is presenting a copy of your organization's corporate resolutions. It should outline the answers to these questions, although I haven't been able to find it online.

      --

      Nothing but the finest in meaningless drivel
    4. Re:Where does the money go? by zogger · · Score: 1

      Didn't happen with the red cross. after 9-11 they were accepting donations for the victims and survivors. A whole heaping boat load of that money DIDN'T go to the victims and survivors, it went to a lot of other weird stuff though, like anti guns rights orgs for instance.

    5. Re:Where does the money go? by FooAtWFU · · Score: 1

      "Restrict your donation"? Bah. Money is fungible. If you donate $1000 to their Server Fund, that's $1000 out of general expenses that WON'T be going to the server fund.

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    6. Re:Where does the money go? by guacamolefoo · · Score: 4, Informative

      Usually, it goes to whatever the folks running the Foundation want it to go to. Their expenses include servers, and also the programmers, and other staff.

      You can find out where some of the money is going by requesting a copy of their informational tax return.

      If you request it, they must provide you with a copy. No, really, it's true -- they have to do it.

      So, if you have questions, write to the Mozilla Foundation and ask for their tax return info.

      GF.

    7. Re:Where does the money go? by ocknock · · Score: 1
      WHen you donate to Mozilla, where does the money go, is it purely on the server, does any of it go to the programmers?

      501(c)3 organizations are required to file IRS Form 990, 'Return of Organization Exempt from Income Tax', if the organziation's gross receipts are over $25,000 per year.
      Form 990 will include functional expenses, a balance sheet and the salaries of board members and key employees. There is a great primer on how to read a Form 990 here.
      Any 501(c)3 should be able to provide you a copy of their latest Form 990, and the IRS should also have a copy. Going those routes may be a bit arduous, so you can also use Guidestar, an organization that focuses on "...on facilitating access to information about the operations and finances of nonprofit organizations."

      Full disclosure: I work for an environmental non-profit.

  9. corporate donations - bigger deal by Potlucker · · Score: 5, Informative

    this allows corporations as well to donate and take the write-off.

    this is big since it makes the foundation significantly more likely to recieve large donations.

    IRS Tax Information for Charitable Organizations

    1. Re:corporate donations - bigger deal by Potlucker · · Score: 0, Troll

      and you get a bigger write-off if you can speel.

      the government rewards smart people.

  10. This would be great..... by ObsessiveMathsFreak · · Score: 1

    If those of us outside the US could also avail of this loophole^H^H^H^H^H^H^H^Hcharitable work.

    Though it will be funny to see bigwigs who go to dinner parties with Gates,McBride and Co. donating to an opposing organisation.

    --
    May the Maths Be with you!
  11. That Is Nice But by ArchAngel21x · · Score: 5, Insightful
    I am thinking of donating a small portion to Mozilla since Firefox is my main browser now. However, my motive is not fueled by a tax break. I want to support an organization that makes good software.

    I encourage everyone who uses a Mozilla browser to donate at least $5. Come on, that is only the price of a value meal at a fast food joint. Just think what the organization could do if we all donated.

    1. Re:That Is Nice But by jrumney · · Score: 1
      I am thinking of donating a small portion to Mozilla since Firefox is my main browser now. However, my motive is not fueled by a tax break.

      This is the reason behind the UK's Gift Aid scheme. Most individuals give money because they beleive in a charities aims, not because they want to claim against their income. Why not give the tax break to the charity if the donor does not want it.

    2. Re:That Is Nice But by linuxci · · Score: 1
      A donation drive would be nice as I'm sure they've got a lot of expenses building up around the forthcoming Firefox and Thunderbird 1.0 releases. The main cost I can imagine would be the servers particularly update.mozilla.org as people go to explore all those brilliant extensions.


      OT: Here's a marketing idea which has probably thought of before. Link the Firefox page saying how/why to switch from IE (http://www.mozilla.org/products/firefox/switch.ht ml) to the words 'Internet Explorer' to increase Firefox ranking in Google, etc. But put it in a sentence so the casual reader knows it's not an IE link.

      Fed up with Internet Explorer?

    3. Re:That Is Nice But by Anonymous Coward · · Score: 0

      It's at least something, but what about GNOME, GNU, KDE, and all the other fine programs which are freely available. Saeriously. Why only Mozilla Foundation? Why not artists from whom we download music (for free)? I mean, seriously, not to troll. There are so many good organisations on this planet from which i get a service from, and only donatingto Mozilla doesn't make sense. When i was at FOSDEM 2004 t-shirts were sold, but those costed 30 EUR! Instead i bought a Debian t-shirt for 10 EUR + 5 EUR donation and a GPL / FSF t-shirt for 15 EUR. I know what it coststo produce a t-shirt (not much) so i found 30 EUR just too much. Maybe next time, or maybe i'll develop a scheme in which i give every month 5 EUR to my favorite charity (5 EUR is not "nothing" for me)... ideas on such schemes, or experiences, are all very appreciated!

    4. Re:That Is Nice But by swillden · · Score: 2, Insightful

      Why not give the tax break to the charity if the donor does not want it.

      That's really no different from the US approach, it just shifts the paperwork from the donor to the charity and reduces the government's contribution with respect to a particular tax rate.

      Assume I'm donating $5 and I paid $1 in taxes on that money.

      Under the Gift Aid approach, if I give $5, the charity gets $5 and then can file to get the other $1, for a total of $6. Net, the charity is up $6, $5 from me and $1 from the government. The charity has to do the paperwork on the donation, I don't.

      Under the US approach, I give $6. Net, the charity is up $6, $5 from me and $1 from the government. Except that's not actually right. If I paid $1 in taxes on $5 of income, I paid $1.20 on $6. So under the US scheme, $4.80 of the $6 comes from me and $1.20 comes from the government, rather than the $1 under the UK method.

      I wonder if that side effect was planned when the UK approach was set up?

      I have no idea if the US scheme actually does encourage larger donations. I know I don't actually think "I can afford to donate $100, but I'll get a $20 tax break for that, so I'll donate $120 (or, ideally, the limit of the converging series 100[.2^n], which converges to $100/.8, or $125)", but I certainly do think "$100 is kind of a lot, but it's really only $80; I can afford that", so the tax effects do cause me to make larger donations than I would otherwise, but I can't really generalize that beyond my own giving habits.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  12. Doh! What about last year's return? by buzban · · Score: 5, Funny

    um...

    meaning you can now deduct donations made directly to Mozilla.org from your income tax returns

    what if I've been deducting donations for a year or so now? :P

    1. Re:Doh! What about last year's return? by sik0fewl · · Score: 1

      Well, now it's legal :) See, everybody benefits.

      --
      I remember when legal used to mean lawful, now it means some kind of loophole. - Leo Kessler
  13. Re:Open Source kills jobs! by agraupe · · Score: 1

    Most citizens who have used IE will concede that spending tax money (a questionable connection by the parent poster) to get a better browser is money well spent!

  14. Great. by Scrab · · Score: 2, Funny

    I can claim it on my tax returns. All I need now is to actually have any money......

    *sigh*

    --
    RoseColor red={0, 0xffff, 0x0000, 0x0000};VioletColour blue={0, 0x0000, 0x0000, 0xffff};find / -name *mybase*|chown you
    1. Re:Great. by Anonymous Coward · · Score: 0

      RoseColor red={0, 0xffff, 0x0000, 0x0000};VioletColour blue={

      What, are you half British?

    2. Re:Great. by Anonymous Coward · · Score: 0

      Aren't you the lucky ducky?

  15. Finnaly... by yaroze32 · · Score: 0

    I think mozilla is a great Charity to donate too. Don't you?

  16. Re:Open Source kills jobs! by T-Keith · · Score: 2, Funny

    First the Government recommends it, now they are financially supporting it. What's next, they prosecute Microsoft?

  17. mozilla.org by Anonymous Coward · · Score: 0

    = the most slashdotted website in the past few months...

  18. plugging my interests too by kippy · · Score: 2, Informative

    The Mars Society
    Project Gutenberg and the Distributed Proofreaders
    Wikipedia (sorta, soon it'll be 501(c)(3) )

  19. Re:Obviously... by dangerz · · Score: 0, Redundant

    Actually,

    1. Get 501(c)(3) approved
    2. Post on Slashdot for millions to see
    3. ???
    4. Profit!

    --
    The greatest experience we can have is the mysterious.
    - Albert Einstein
  20. Re:Obviously... by thumperward · · Score: 5, Funny

    Isn't it

    1. Get 501(c)(3) approved
    2. Post on Slashdot for millions to see
    3. ???
    4. don't profit, because you're 501(c)(3) approved!

    - Chris

  21. Actually, those cries set the mood quite nicely by Anonymous Coward · · Score: 0

    mmmm, suffering....

  22. yep, it's not good by zogger · · Score: 3, Informative

    there are a lot of hidden gotchas once you have that status, many of them political. For instance, say you had candidate A who really supported open source, and a candidate B who wanted to restrict heck out of it. Moz . org could no longer issue press releases or endorse candidate A officially about it. It's hit a lot of not for profits lately. A lot of churches now for instance are abandoning their 501 c 3 status because of those restrictions. The government can legally outlaw some things a preacher might preach about if they are incorporated under 501 c 3. It applies to any org like that, not just churches. I'd have to google to go find all the exact particulars, but I know there's a lot.

    A good rule of thumb (well, IMO anyway) is, DON'T sign a contract with the government or any of it's agencies or bureaus if you absolutely do not have to. Every time you "voluntarily" sign something with them, it's always in their favor in the fine print.

  23. UK donations? by 16K+Ram+Pack · · Score: 2, Interesting
    Any way we can donate and get some extra money for Mozilla?


    I don't know if an open source software project would be able to get charity status in the UK.

  24. retro-active? by spoonyfork · · Score: 1

    When does this take effect? I purchased the $50 donation with t-shirt gift a couple weeks ago. Am I going to be able to include that for 2004 on my tax return?

    --
    Speak truth to power.
    1. Re:retro-active? by sunilonline · · Score: 3, Informative

      I am on the board of a 501(c)(3) and when we got the designation from the IRS they said it was retroactive to the date that the organization started.. I don't know if this applies to all organizations or not.

  25. Only if you itemize (Schedule A) by jabberw0k · · Score: 5, Informative

    You can only deduct charitable contributions if you itemize your deductions on Schedule A.

    See the IRS page, "Should I Itemize?"
    http://www.irs.gov/taxtopics/tc501.html

    For those of us without mortgages or major charitable contributions, the Standard Deduction is far greater than what can be achieved with Itemization...

    Permitting charitable contributions even for apartment renters would surely have a huge positive impact socially and economically... but as things stand, I and many others are foreclosed from realizing any *financial* advantage (as opposed to a warm fuzzy feeling) from charitable donations.

    1. Re:Only if you itemize (Schedule A) by daveo0331 · · Score: 1

      If you live in a state with a high state income tax rate , you might be able to itemize even if you don't own a house. It's worth checking.

      --
      Remember the days when Republicans were the party of fiscal responsibility?
  26. Obvious consequence by c0p0n · · Score: 1

    basically, if you donate, you cannot use Mozilla.

    --

    Your head a splode
    1. Re:Obvious consequence by LostCluster · · Score: 1

      Nope. That's not what it means. Your donation doesn't directly give you access to Mozilla since freeloaders can use it too...

  27. Re:Before you donate... by michaelggreer · · Score: 4, Insightful

    Not so scandalous, in my opinion. Someone took their trademarked logos to use in a KDE theme. Now, they may have been wrong not to allow that, but I can understand why they did. They don't want people tagging all sorts of things with their logos: their logo refers to them. It's a brand. If they don't defend it now, then later they can't do so. This is not fair use either: its not a commentary on the logo, but an appropriation of it. There might be ways around this, but it is a far cry from a "scandal."

    Be reasonable, folks. I agree with the free software movement, but that doesn't mean I think everything anyone ever does should be available for anyone to use under any conditions.

  28. Re:Obviously... by JJahn · · Score: 1

    No its more like:

    1. Get 501(c)(3) approved
    2. Post on Slashdot for (not quite) millions to see
    3. ???
    4. The accounting books say you don't profit, because you're 501(c)(3) approved!
    5. Profit!!! because you're really just an easily corruptible, thieving bastard!

    Errr, oh wait thats my life story, not the Mozilla foundation. Bah...never mind.

  29. Re:Open Source kills jobs! by dmh20002 · · Score: 1

    I paid for opera, but have converted to Firefox because its better. To me better means lighter weight and less likely to have a web site complain at me for not using a supported browser.

    so the parent is right, firefox probably is going to destroy opera on the desktop. Hopefully opera will succeed on the embedded platforms.

  30. Re:Before you donate... by linuxci · · Score: 2, Insightful

    Why can't the mozilla foundation protect its trademarks?

  31. This means that . . . by Prince+Vegeta+SSJ4 · · Score: 4, Funny
    because they are not able to return the money to investors that they investors would be looking for.

    I can deduct most of my investments from the late 90's, since 90% of the companies from the dot.bomb era must have been nonprofits! w00h00

    1. Re:This means that . . . by Anarcho-Goth · · Score: 1

      I can deduct most of my investments from the late 90's, since 90% of the companies from the dot.bomb era must have been nonprofits!

      Actually, a lot of people will cut their losses on some of their investments, when other investments have done well, in order to cut down on their taxable income.

      In other words, if you've made a lot of money, but have a bunch of stock that if you sold it you'd be selling it at a loss, you can minimize your losses by saving in taxes from the capital gains that actually made money.

      The companies themselves not making a profit has nothing to do with nonprofit or even not-for-profit, but investors can still have an advantage in certain situations.

      But then in this economy the speculative market has been hurting bad since second quarter 2000. Still, there are other investments beyond speculation.

      --
      I hate Liberals and Conservatives.
      If you are a Liberal or a Conservative, then HAVE A NICE DAY!
      Courage.
  32. 501(c)(3) != deductability! by weav · · Score: 4, Informative

    IIRC, 501(c)(3) status just means the entity doesn't have to pay income tax on its revenues. Being certified as a public charity to whom contributions are deductible is a DIFFERENT THING.

    Don't try to write off Mozilla contributions until you hear they're classified as a public charity...

    Danger, Will Robinson!

  33. Re:Ridiculous by Anonymous Coward · · Score: 0

    geez guys, it was sarcastic

  34. That's not entirely accurate. by autiger · · Score: 1
    You wrote:
    The government can legally outlaw some things a preacher might preach about if they are incorporated under 501 c 3.
    Churches and 501(c)3 organizations are just prohibited from campaigning for/against or endorsing specific candidates. These orgs can still advocate on issues and for/against ballot questions such as inititives, referenda, amendments, etc.

    Churches (more specifically the Christian Coalition) have been circumventing this for years by using a Voter Guide (also allowed under the law) which indicates candidate positions usually obtained by crafting a candidate survey in such a way that the candidates they endorse are most highly rated or have the most checkmarks beside their name. Parishioners will often walk into the voting booth with the guide in hand.

  35. Free Software Foundation doesn't stand for "OSS". by jbn-o · · Score: 1

    Seems like it'll take some work to find an OSS-supporting group that can't accept tax deductable donations.

    The FSF asks that you not lump their work in with "open source". Considering that their work predates the open source movement by many years and is philosophically distinct, I think it would be reasonable to honor that request. Perhaps this list is better left as "a few of our other favorite groups".

  36. Re:Before you donate... by Gerv · · Score: 3, Informative

    Hardly a scandal. The Mozilla Foundation has trademarks on the Firefox and Thunderbird logos, and we want to make sure they are only used to label our stuff. Trademark law says we have to ask people misusing them to stop, or we lose the trademark.

    When I get a second, after tonight's staff meeting where I will be bringing the issue up, I plan to get back in touch with the people concerned and see if we can't find a way to make these legal.

    However, the way to get legal icons is not to distribute illegal, infringing ones and hope no-one notices or fails to take you down. The Free Software movement is (or should be) built on respect for the law. After all, if people ignore copyright law, they can rip off our software. And we would rightly complain about that.

    Gerv

  37. Re:Before you donate... by erroneus · · Score: 1

    From what I read, it's not that big a deal.

    The fact is, if Microsoft didn't want their brand on stuff they didn't sanction, it's expected. The world is FULL of really stupid people and while I'm sure no one here actually reading this qualifies as one of the stupids, there are people out there who might see something "themed" as some mozilla product and later ask about "How about that Mozilla Word Processor? Where can I get that?!" If for no other reason that to avoid stuff like that, it's worth defending your mark.

    Then again, I'd like to make some "Quattro Vezina" hemorrhoid lotion and "theme" it with your face. Would that be okay?

  38. Only in USA? by FlyingOrca · · Score: 1

    Maybe, since there are already so many(!) tax lawyers in this thread, someone can tell me whether this is a valid deduction in Canada if it's recognized in the Excited States. I've been wanting to give a little love back to the lizard for a while. Cheers!

    --
    Corruptissima re publica plurimae leges.
    1. Re:Only in USA? by INAN · · Score: 1

      IANAL, but I believe you have to apply to be a registered charity in Canada with the CRA. See the documentation to become a registered charity.

    2. Re:Only in USA? by FlyingOrca · · Score: 1

      Thank you for responding - that part I knew, as I'm "business manager" (read "IT guy, HR guy, financial guy, assistant director, etc., etc.") for a non-profit here in Canada. I'm just wondering about the tax-deduction status of orgs that are registered in the US but not with the CCRA. Cheers!

      --
      Corruptissima re publica plurimae leges.
  39. here's is the text by zogger · · Score: 1

    direct from the irs, so we can all be on the same page here with what we are talking about:

    http://www.irs.gov/newsroom/article/0,,id=122887 ,0 0.html

    Charities May Not Engage in Political Campaign Activities

    IR-2004-59, April 28, 2004

    WASHINGTON -- Charities should be careful that their efforts to educate voters comply with the Internal Revenue Code requirements concerning political campaign activities, the tax agency said today in a presidential election-year advisory.

    Organizations described in section 501(c)(3) of the Code that are exempt from federal income tax are prohibited from participating or intervening in any political campaign on behalf of, or in opposition to, any candidate for public office. Charities, educational institutions and religious organizations, including churches, are among those that are tax-exempt under this code section.

    These organizations cannot endorse any candidates, make donations to their campaigns, engage in fund raising, distribute statements, or become involved in any other activities that may be beneficial or detrimental to any candidate. Even activities that encourage people to vote for or against a particular candidate on the basis of nonpartisan criteria violate the political campaign prohibition of section 501(c)(3).

    Whether an organization is engaging in prohibited political campaign activity depends upon all the facts and circumstances in each case. For example, organizations may sponsor debates or forums to educate voters. If the debate or forum shows a preference for or against a certain candidate, however, it becomes a prohibited activity.

    The federal courts have upheld this prohibition on political campaign activity, most recently in Branch Ministries v. Rossotti, 211 F.3d 137 (D.C. Cir. 2000). The courts have held that it is not unconstitutional for the tax law to impose conditions, such as the political campaign prohibition, upon exemption from federal income tax.

    If the IRS finds a section 501(c)(3) organization engaged in prohibited campaign activity, the organization could lose its tax-exempt status and it could be subject to an excise tax on the amount of money spent on that activity.

    In cases of flagrant violation of the law, the IRS has specific statutory authority to make an immediate determination and assessment of tax. Also, the IRS can ask a federal district court to enjoin the organization from making further political expenditures.

    In addition, contributions to organizations that lose their section 501(c)(3) status because of political activities are not deductible by the donors for federal income tax purposes.

    The political campaign prohibition as it applies to churches is discussed in Publication 1828, Tax Guide for Churches and Religious Organizations. This publication, along with other information about the political campaign prohibition, is available on IRS.gov at www.irs.gov/eo.

    The IRS issued similar election-year advisories to charities in 1992, 1996 and 2000.

    Related Items:

    *
    Publication 1828, Tax Guide for Churches and Religious Organizations. (PDF 1.3MB)
    *
    Political and Lobbying Activities

    --there are some circumvention efforts, and they are selectively enforced and on shaky ground. The law is vague enough, yet detailed enough, so that they can just assert you are doing something wrong, and you have to prove you aren't, similar to the other backwards rules relating to the IRS, for instance, they can and do seize peoples bank accounts without any court judgement in their favor. Basically it's a club they can use when they choose to use it, that's why I think it's a better idea to just not sign the contract with them. You have waived your rights in advance, in exchange for an arbitrary tax exempt status, that they can revoke on just their say so,and charge you with a crime then, and you then have to go to court to prove they are wrong. In the meantime, they win, you l

  40. Re:Ridiculous by MikeCapone · · Score: 1

    geez guys, it was sarcastic

    Hard to tell with all the nuts out there. Many write such things very seriously all the time.

    I guess that's what happens when you watch too much FAUX News.

  41. its about control and competition by Anonymous Coward · · Score: 0

    You can't compete with larger companies if they give an open source company like Mozilla free money. They get the tax deduction and destroy a profitable buisiness segment.

    Its basically the service industry screwing over the software community and converting that buisiness to a tax write off. Now the engineers and techs get a very small piece of the pie while they profit even more! Oh, the irony...they needed that software to build their "service" but did not want to pay the engineers. Even cheaper than outsourcing...

    But all the kids thought they were programming for free but in an indirect way they are helping construct the death star. Ironic?

  42. Re:Bill Gates was right! by Anonymous Coward · · Score: 0

    It gives the donor ( corporation ) the decision of where to spend the tax dollars and not the government. Move the shell from here to there. Now the money is in donor control.

    Not that the government spends wisely all the time. But I'd say its more likely the government would repair your side walk or road, make another space probe or support the local homeless shelter.

    The pizza money at Mozilla needs to come from somewhere...

  43. Haven't you heard of Darwinism? by Anonymous Coward · · Score: 0

    People in the third world need to help themselves, and if they can't/won't, then they deserve to die.