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Message: <blockquote data-quote="Fritz the Cat" data-source="post: 180690" data-attributes="member: 605">Farm Rescue is a non-profit. They get money from Foundations. Foundations exist at the pleasure of the U.S. governement to serve a charitable purpose. While "charity" is a wide ranging concept, the Tax Reform Act of 1969 spelled out clear rules for foundations. Before TRA, many (not all foundations) were tax dodges. There are 1.6 million so-called ‘nonprofit’ 501(c)3 organizations in the US. Nonprofits are misnamed and are anything but not-for-profit; a more accurate description is that they are TAX EXEMPT organizations. The two major types of tax exempt organizations are:<ul> <li data-xf-list-type="ul">Foundations- these are the grantors and they are required to donate 5% of their assets each year to charitable organizations. They enjoy enormous tax breaks from the federal government and pay no income tax, no corporate tax and no capital gains tax. States and local governments may also exempt them from property and sales taxation. Some powerful foundations are extremely influential in setting political policies and making laws that benefit their enterprises and pass the cost onto taxpayers.</li> <li data-xf-list-type="ul">Nonprofit Organizations or NPOs also enjoy the same tax exemptions as foundations (no income, corporate or capital gains taxes). NPOs are structured like a business and seek grants from foundations, government subsidies and corporate and private donations. They do pursue profits.</li> </ul>Foundations make grants to NPO “charities”.  Assets within foundations are not owned by individuals, but individuals control the assets.  Because they are allowed to continually re-invest assets without taxation, foundations are used to protect family wealth through estate planning; this scheme is now expanding into business development which means that some businesses are seeking to cut their taxes by pretending to be charitable organizations.</blockquote>

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