Quote:I don't think that your post that I quoted came across the way that you think.  I was kind of addressing an earlier post regarding "mega-churches".  I figured that you being the good liberal that you are probably agreed with the post.  Again, it's hard to really discuss this while staying within the COC.

 

I do also agree with you that a group or organization that does legitimate charity work should get tax relief.

 

But that's the problem.   What is "legitimate charity work?"   Right now, getting a tax exemption involves filing a form with the IRS and having them decide whether you are legitimate or not, and that obviously leads to all sorts of abuse.   The problem with exemptions is that someone has to be the judge of who deserves an exemption.   So you set up rules and a judging organization to hand out exemptions.   And that leads to the setting up of businesses who make money on guiding people through the process, finding the loopholes, filling out forms, going to court, and so on and so on.  

 

Set up any simple rule about who can get an exemption, and there will be a thousand ways to take advantage of that rule and turn your "charity" into a money making enterprise for the benefit of those who run it.  That's the problem with handing out tax exempt status.  

 

Suppose I set up a charity that builds homes for the homeless.  Suppose the rules say I have to spend 90% of the contributions.   Okay, fine.   Can I hire my brother's construction company to build the homes?   So you make a rule that says I cannot hire a company owned by a relative.   Okay, what constitutes ownership?   Over 50% ownership?   Can I hire my brother's company if he only owns 49% of it?   What if the other 51% is owned by my brother's son in law?   And so on and so on and so on.   Make a rule, and I will get around it.   Only one rule works.   No exemptions.  

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