Re: [Fenfire-dev] non-profit association vs. co-operative

[Antti-Juhani Kaijanaho]

On 20040610T161558+0300, Matti Katila wrote:
> And I must correct that all donations are not tax-deductible in Finland 
> because they don't improve trade.  The association can give donations 
> tax-deductible.

You're not making sense.  Donations are not tax-deductible except that
they are?

Certain "IRS"-cerified charities can take donations that are
tax-deductible to the donor.

> I do understand that. With association we need to pay taxes to get funding 
> from members if we don't use membership fee.

Uhh, what?  I've never heard of a charitable association having to pay
taxes on free gifts (freely given, that is) it receives.

In fact, I just rechecked the facts, and charities do not pay taxes on
gifts it receives.  To be counted as a charity, the following must be
true of an association:

   1) Its sole motivation on all its operations is direct common good
      materially, spiritually ("henkisessä mielessä"), educationally
      ("siveellisessä mielessä") or socially ("yhteiskunnallisessa
      mielessä"). [Translations are rough where the original phrase is
      indicated.]

   2) Its activities are not limited to a particular set of people.
      (This means, for example, that membership must be open to anybody
      who agrees with the goals, not only to for example people called
      Kaijanaho:)

   3) It does not bring profit through dividends to those involved, not
      counting fair compensation for work done for the association.

I think a Fenfire association would qualify.

(However, even a charity pays taxes for business income.)
-- 
Antti-Juhani Kaijanaho                  http://antti-juhani.kaijanaho.info/

     Päiväkohtaisia kirjoituksia - http://antti-juhani.kaijanaho.info/blog/
                            Toys - http://www.cc.jyu.fi/yhd/toys/

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