Liberty University Allegedly in Violation of Federal Tax Law

https://www.politico.com/news/2021/10/27/liberty-university-jerry-prevo-influence-517303

 

The lawsuit is a bigger threat than the clown comments because it can reveal a great deal--if there is something to this.

Probably shouldn't have fired Lamb. That pushed Lamb to the outside, where he can cause much trouble--if there is something to this.

Follow the money.

 

Yeah, this does raise red flags about the University's tax status but I think it depends on what the institution actually DOES and not on what one official SAYS. This is a good example of why I don't think charitable contributions to any organization should be tax deductible. Americans are an intensely political people. We are quick to resent any restrictions on our political speech, especially restrictions imposed by the Tax Code. If we eliminated the charitable deduction altogether there would be no need for any such hair splitting.

There is a second reason I think. There are certainly organizations I support that other Americans certainly do not support and vice versa. I resent the fact that my tax dollars support such institutions of evil and iniquity and I am sure that the others object to their money subsidizing my brilliant gems of American social genius. Eliminating the charitable deduction completely would end this source of resentment.

The Trump Tax Code made good progress by the way by significantly reducing the number of taxpayers who itemize deductions. I would like to see Congress push it even further and eliminate the charitable deductions from both the Income Tax Code for individuals and corporations and the Estate Tax Code as well.

 

I thought as long as you are approved for a non-profit organization, you do not have to pay any taxes.

 

501(c)(3) organizations which are traditional charities we think of have a federal tax exemption, and donations result in tax deductions for donors. I've also worked and volunteered for 501(c)(4)'s which are social welfare organizations and 501(c)(6)'s who are Chambers of Commerce/Business Leagues. They do get a federal tax exemption but donations are not tax deductible except in narrow cases.

Also, nonprofits of all stripes may still owe state taxes like property tax, sales tax, etc., depending on the state.

 

All stripes except churches.