Let me provide additional refresher on the #CAMA2020 issues.
It is because of the PUBLIC benefit from charities that made governments to grant tax exemption to charities.
It is because of the PUBLIC benefit from charities that made governments to grant tax exemption to charities.
You cannot get the tax waivers and at the same time reject the conditions that is attached to the tax waivers (for the organization).
Another reason why some are angry with #CAMA2020 is that they don’t like this type of governance requirement that’ll make their organizations to disclose how much they are taking from the purse of the organization.
Let me explain this “governance” requirement.
If you collected donations for a church auditorium, you must not use it to, say, send Pastor’s children to Harvard unless it is (1) clearly written in the church’s constitution that Pastors’ children would be sponsored to Harvard,
If you collected donations for a church auditorium, you must not use it to, say, send Pastor’s children to Harvard unless it is (1) clearly written in the church’s constitution that Pastors’ children would be sponsored to Harvard,
and (2) clearly reported in the financial reports to members and contributors that Harvard sponsorship for Pastors children was XXX amount.
However, such benefits (in the pockets of the leaders) are taxable.
The charitable organization is tax exempted, the leaders of such organizations are not tax exempted.
The charitable organization is tax exempted, the leaders of such organizations are not tax exempted.
But there is a way out. Let me give everyone a free consulting opinion.
I can be nice sometimes 😁😁😁
I can be nice sometimes 😁😁😁
You are free to register your religious organization as a limited liability company - just like any other business.
Your organization would pay the necessary taxes and you’ll keep all the “proceeds” to yourself.
Then, you avoid Section 839 and all the wahala. Hope that helps?
Your organization would pay the necessary taxes and you’ll keep all the “proceeds” to yourself.
Then, you avoid Section 839 and all the wahala. Hope that helps?
But, if you choose to register the organization as a charity (for PUBLIC benefit and PUBLIC financial support), the government has a responsibility to protect the PUBLIC to ensure that the charity’s objectives are not derailed and that funds are used for their intended purposes.
So, if you don’t have any plans to derail the objective of the organization and not planning to divert funds for other unintended purposes, fear not, section 839 of #CAMA2020 has nothing on you 🙌🏽
