Charity sends millions offshore legally
It is legal for a charity like the Southern Poverty Law Center to invest $69 million into offshore accounts, according to the IRS and the American Bar Association. The only disclosure requirement is a one line note on how much was invested offshore.
https://apps.americanbar.org/buslaw/blt/2009-03-04/mehta.shtml
http://www.baltimoresun.com/news/maryland/bs-md-cayman-islands-20141213-story.html
- Cash contributions in the millions without explanation.
- Lobbying to support political issues.
- Failure to report donors.
Once again, all three items above are legal according to the IRS and American Bar Association.
Why does the Southern Poverty Law Center have offshore accounts? Why does it donor base fail to question it and ask why? Who would continue their contributions without answers?
Former Secretary of State John Kerry said that "Americans have the right to be stupid."
JP Morgan Chase and Apple each donated $1 million and match their employees contributions to the Southern Poverty Law Center.
https://www.upi.com/JPMorgan-pledges-2M-to-anti-hate-groups-after-Charlottesville/6251503333746/
A charitable offshore family foundation offers the wealthy a vehicle to spend up to 90 per cent of its income on salaries for themselves including office overhead. The donor can also maintain how and where foundation funds are spent.
There is no government oversight of charitable offshore family foundations. Funds are protected from creditors and former spouses. The donor can also invest in for profit companies they own, making themselves even wealthier.
https://www.offshore-protection.com/panama-charitable-foundation
Here are copies of three pages of the tax return filed by the Southern Poverty Law Center in 2015.
On schedule F, Form 990, questions three and four are checked "Yes".
Question three says, "Did the organization have an ownership interest in a foreign (non-U.S.) corporation during the year?"
Question four says, "Was the organization a direct or indirect shareholder of a passive (non-ownership) foreign investment company or a qualified electing fund during the tax year?
On Page Five of the 2015 tax return, Part V, Supplemental Information further explains the "yes" answers for questions three and four:
Part IV, Question 3: "The Center has ownership in several foreign corporations. However, the Center's ownership percentage in these corporations does not rise to the level of reporting on the Form 5471."
Part IV, Question 4: "The Center is an indirect owner in several passive foreign investment companies. The direct owner has properly reported these investments on Form 8621. Therefor, the Center does not have a filing requirement."
On Supplemental Information to 990 (the Center's tax return form), 2015, "Form 990, Line 4B, List of Foreign Countries: Cayman Islands, British Virgin Is, Bermuda."
file:///C:/Users/Harry/OneDrive/Pictures/ControlCenter4/Scan/SPLC%20foreign%20taxes%202015.pdf