[Foundation-l] [ANNOUNCEMENT] Greenspan illustration project

Ray Saintonge saintonge at telus.net
Sat Nov 3 16:37:33 UTC 2007

Sue Reed wrote:
> ----- Original Message ----
> From: GerardM gerard.meijssen at gmail.com
> Once money has been given to the WMF, the WMF can spend the money where it
> wants. People or organisations may deduct taxes under certain conditions. If
> these conditions are met is none of our business.
> Thanks,
>     GerardM
> That's not actually true. US-based non-profits typically have restricted funds and non-restricted funds. Money given under non-restricted funds can be used however the non-profit feels is necessary. However, money specifically given to certain projects must be used for those projects. Reading Cary's email, it looks like this gift was given *specifically* for use in creating various illustrations for Wikipedia projects. That is the only thing that the money can be used for. IANAL and don't have access to the specifics of the grant, but things like employment taxes would probably be covered. Most grants require specific accounting back to the people giving the money on how they funds were spent. 
Don't mix up the two issues.  Accounting to the donor depends solely on 
the agreement between the Foundation and the donor, and any taxes paid 
on behalf of the illustrators can be deemed as having been made to the 
illustrators.  Any clause in the agreement forbidding the payment of 
taxes (if any are indeed payable) would likely be contrary to public 
policy.  $20,000 is too small for taxes to be a factor when that money 
is going to be distributed to many hands.


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