I don’t think you’ll be able to incorporate this as a 501(c)(3) or 501(c)(4), which means donations to it will not be tax deductible. That is, I think a social club or church that gave out emergency support to members could be recognized as a charity, but one that gives people ‘shares’ that entitle them to their money back does not do so.
This, sadly, looks like it knocks out the whole project; instead of giving $20k to charity and reducing my taxes by $4k and putting that $4k in the bank, I give $20k to charity so that $4k of it gets banked so that maybe I (or other users) could use it.
It would still help people (in the US) who would be donating less than their standard deduction ($12k/yr, so those who earn less than $120k per year), and those are the ones who are most likely to be in the relevant risky situation. It might still be a killer problem though.
I don’t think you’ll be able to incorporate this as a 501(c)(3) or 501(c)(4), which means donations to it will not be tax deductible. That is, I think a social club or church that gave out emergency support to members could be recognized as a charity, but one that gives people ‘shares’ that entitle them to their money back does not do so.
This, sadly, looks like it knocks out the whole project; instead of giving $20k to charity and reducing my taxes by $4k and putting that $4k in the bank, I give $20k to charity so that $4k of it gets banked so that maybe I (or other users) could use it.
It would still help people (in the US) who would be donating less than their standard deduction ($12k/yr, so those who earn less than $120k per year), and those are the ones who are most likely to be in the relevant risky situation. It might still be a killer problem though.
Or those who don’t itemize deductions (most non-homeowners).