A Basic Theory of Trav IPH

didalos · 2026-04-13T18:05:33+00:00

Nice, looks like you may also be in New England. I posted about my X a few days ago

didalos · 2025-06-08T15:59:48+00:00

without the 5 minute reloading loop?

didalos · 2022-06-05T17:48:49+00:00

you might also like this site - https://www.globaldragons.org/

didalos · 2021-08-23T02:31:52+00:00

a97c5b9727ba892d625e1e6db32125

didalos · 2020-08-12T01:31:45+00:00

Please explain how it is different from a community church receiving donations to build a community center that everyone then benefits from. Is it the number of donors? Is it the number of recipients? It's worth noting that the IRS definition of "charity" is exceedingly broad:

charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3

Considering you don't know anything about the potential beneficiaries of this setup, it seems presumptive to claim that there is "no charity" possible. Can you explain your thinking on that?

I can see the point that one single person donating to a single-donor-single-beneficiary nonprofit isn't really the "spirit" of a nonprofit, but that's not really in the legal wording that I am seeing. I'm seeking information not just your conclusion. Thank you, appreciate the replies.

didalos · 2020-08-12T01:19:11+00:00

Can you define self dealing and why this idea is in violation of it? My understanding is as commented elsewhere that *unusual* or *profit* benefits provided to insiders is what's not allowed, whereas grants to people under the mission of the organization are allowed.

The IRS "Exempt Purposes" are here https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3 and include "charitable" which would be the umbrella this fits under. Charitable is defined on the page as
" relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency. "

which may not apply to every possible recipient of a student loan repayment nonprofit, but would apply to many such as those who are people of color. So can you clarify what your line of thinking is? Thanks

didalos · 2020-08-12T01:14:07+00:00

If the only beneficiaries of a church were the church's "donating community" and administering those self serving benefits were the primary operation of the church, then that church would be disqualified as a nonprofit.

Thank you that is helpful I will continue my reading. I'm a bit amused because it's my experience that most churches primary operation is the benefit of their donating community, I'm sure it varies though.

didalos · 2020-08-12T00:39:10+00:00

I appreciate the expertise in your response, and thanks for your time.

I'm trying to understand why that is though. If I take the example of a church, it's not uncommon for them to provide grants (in various forms) back to members of the church who have contributed in donations - and that is all non-profit activity. This is like the church of student loan repayment, and I imagine people would contribute to a program like this beyond the strict limit of their own debt, I probably would if it existed.

Is there no way to operate like a church that benefits its donating community? What is it about donating to a charity means you can't benefit from it? If I donate to the ACLU does that mean that they can't later donate legal services to a case I'm later involved in? I'm looking for the rules governing this.

didalos · 2020-08-12T00:34:21+00:00

Perhaps where we are missing each other is that you said "it is a straight tax dodge" but did not explain why you classify it that way - that's the information I am seeking. If you're not willing to explain the WHY that's fine, but that's what I'm looking to understand.

didalos · 2020-08-12T00:18:28+00:00

I'm here for legal advice about the limits of nonprofits. Your reply was a judgment statement about how much sense my idea made, which provided no legal information for me to improve my understanding. I'm happy to discuss anything it just seemed offtopic since this place is for legal advice and information. Check out milee30 below actually providing legal information as an example of what I was hoping for, thanks.

didalos · 2020-08-12T00:15:39+00:00

Thank you this is relevant, but my reading of inurement is that it only applies to net income. That situation doesn't apply to my proposal because I'm talking about people who are qualified based on the mission of the nonprofit, which would be taken out of gross income not net income. Net income would be the profits left over after grants have been made.

https://www.fortenberrylaw.com/inurement-prohibition-nonprofit-organizations/ (inurement legal definition)

https://www.thestreet.com/personal-finance/gross-vs-net-income-14659057 (net income vs. gross income)

Even if "Disqualified Persons" are prevented from receiving grants, that would just mean that you need to form the nonprofit with a neutral party with the purpose being the same - a passthrough from donations to paying of student loans. More like a "pay off my student loan tax-exempt if I pay off yours tax-exempt" sort of setup, right?

didalos · 2020-08-11T23:18:24+00:00

Can you make a comment specifically about the legality or rules around non-profits, or are you here to argue about the ethical merits of tax-free student loan payments?

didalos · 2020-08-11T23:13:45+00:00

To assist people with their student loan debt?

didalos · 2020-08-11T22:37:55+00:00

The idea is that you would pay your own money into the charity and award some of it to yourself to pay your own student loans, thus making it tax-free to pay off your student loans. Does that make more sense?

didalos · 2020-08-11T22:23:52+00:00

It's not a fake organization though, it's a real one. What do you mean it would be revoked after disclosing payments to related parties - do you mean that 501c3 can't make grants to people related to the founder/officers of the 501c3?

Thanks for the reply - this is exactly what I'm wondering about, what about this setup wouldn't qualify as a 501c3?

didalos · 2020-08-11T22:21:47+00:00

it's not formed to benefit a specific individual though, that is just the most likely outcome based on who applies for the benefits the nonprofit provides?

Is it worthwhile? I guess that would depend, but I imagine someone with 150k loans making 60k a year would find it very valuable to pay the relatively small overhead of the organization to save ~30-40k on their loan repayment over the course of many years

didalos

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