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AERDO Interagency GIK Standards,
January 1999
Guidance for Understanding Standards
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Standard #1 - Compliance with Agency Mission
Background: Concern has arisen over the practice by a few non-profit organizations of accepting GIK donations which are not compatible or consistent with their tax-exempt purposes or mission.
GIK Standard — Compliance with Agency Mission: All GIK donations must be used in furtherance of the tax-exempt mission, purpose, and program objectives of the recipient non-profit and its affiliates.
Guidance: Federal tax laws require non-profit organizations to perform activities or programs consistent with their stated mission and purpose in order to retain their tax-exempt status. The standard simply recognizes that precedent and requirement as it relates to the receipt and utilization of GIK donations. Donations offered which are inconsistent with the non-profit’s mission and tax-exempt purpose should not be accepted. In instances where such donations may be offered, options available to the non-profit include: declining the donation or referring the donor to another non-profit which has a mission consistent with the offered product. It must be noted that a non-profit which accepts a donation inconsistent with its tax exempt purpose jeopardizes any tax deductibility of a donation for the donor. |
