A foundation doesn’t qualify as a public charity, an Appeals Court states. When its operating documents don’t identify the charities it plans to support.
The foundation in the case was set up to aid charities that promote and perform public health or Christian objectives. The organization’s articles of incorporation do not need to name the groups intended to be benefited, they must provide some basis of determination; ie. geographical or by type as to how to identify the beneficiaries.
Although donations to the foundation still can be deducted, write-offs are capped at 30% of the donor’s adjusted gross income rather than 50%, as for public charities. This interferes with my lottery strategy. See that post for further entertainment.
(Polm Foundation, D.C. Cir.)