Tax Deduction
Ah, the joys of charity work. Not only do you get to help those in need, but you also get a nice tax deduction. It’s a win-win situation! But wait, there’s a catch. Your charity must be for the public benefit, which means you can’t just give money to your best friend’s cousin’s dog walker and expect it to be tax deductible.
However, thanks to an old English case from the 1700s, you can create a “private” charity if it’s used for the relief of poverty of family members. It’s like a legal loophole within a legal loophole. So go ahead, create your own private charity for your second cousin twice removed who’s going through a tough time. Just make sure you can prove they’re in dire need of financial assistance, or else the taxman might come knocking.