Qiyam,
And from your iterations over what 501 (a) says..
Your posts fail to address these very
iterations over what 501 (a) says that leads me to believe that you don't understand what I am saying. Any non-Bohra CPA will tell you that.
When the US government allows an entity to be setup as a non-profit there is a catch; please review my previous posts regarding
ministers and
insiders. They are designed to prevent the very scenario that you are ignorantly justifying as gifts and confusing the gift
giver as being treated the same as a
gift taker. Please don’t quote from the trivial gift tax exemption , which is not relevant here.
Let me give you an example in layman’s terms ( I am giving you the benefit of a doubt, in that , it is not your bias, but your ignorance that fails to address my very specific
iterations).
I setup Anjumane Bohra Plumbing as a non-profit under section 501, with the sole purpose of providing free plumbing services to monetarily poor Bohras that have to convert their toilets to those that conform to the Dai's vaez. Just call me the Dai Master Plumber. I hire a few Bohra plumbers and pay them room & board to do this full-time. This makes them
insiders just like me .
Now I (Dai Master) say, well if you want expedited services, (let's just call it Red Feto response ), you can gift me personally $10,000 (let's just assume it is cheaper than a Kadam Bosi). Then I add, a Sheik Response will merely cost you $5000 ( to me personally), and we will leave you a green scarf. Please note
it is all voluntary
In the meantime my fellow
insider plumbers figure out that, well if they hang around for a
gift from this fellow using free plumbing services, they will show up earlier for his next call. Let's just call this the
Razaa arrangement. In the process they will continue to make sure that no Bohra suffers from non-Safai Shitty (pun intended). This is
voluntary too.
What is wrong with this picture ?
Now that I have placed these
iterations in Plumbing terms, perhaps you (or your CPA) can answer my original question. Please stick (no pun intended) to my example.
Best Regards....