[Foundation-l] Fwd: The question of tax-deductible donations

[Michael Bimmler]

[forwarded post from non-member]


From: Mike Godwin <mgodwin at wikimedia.org>
Date: October 24, 2007 4:36:20 AM EDT
To: foundation-l at lists.wikimedia.org
Subject: The question of tax-deductible donations




My own research today seems to confirm the view that, while in some
nations a contribution to Wikimedia is tax-deductible, in others it is
not. In effect, it seems there is no general answer, and the specific
answers for each country can be maddeningly complex -- complex enough
that we could spend a whole lot of time trying to dig up the answer
for every nation where a donor might reside. I'll see if I can find a
resource that makes it easier, but I'm not hopeful about that.

So ... I'd like to de-emphasize tax-deductibility to the extent
possible, if we can do it.  We so know that Americans who give can get
a break on their American taxes.  We also know that some donors in
other nations can do something similar, sometimes, to some extent.
Beyond that, we don't have a general answer yet, and there may not be
one.

The point I think Brian McNeil has made is a good one -- only a third
of Americans itemize their deductions, and we have no reason to
believe the demographics of our American donors are different from
those of Americans generally. (That's the null hypothesis.) What this
suggests is, in the absence of more data about donors and
deductibility, we should stress altruism more than the tax deductions.
Yes, we can say "in some nations, including in the United States, you
may be able to obtain a tax deduction for your donation."  Or
something similar. But I don't want to take the risk of overpromising
on the tax-deduction question.  We'd like people to give to Wikimedia
because it's the right thing to do and not because they necessarily
get a reduction in their taxes.

I'm sorry not to have a neat, general answer to what turns out to be
complex question, but I'm still researching it.



--Mike Godwin
General Counsel
Wikimedia Foundation