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| Whoa, Minas dude, you totally golded her |
"While it certainly is true that powerlessness, poor health, poor education and absent transport infrastructure are important root causes of poverty, there can be no question that the most direct and cost-effective first step out of poverty is to find ways to help poor people increase their income."The "non-profit" or 501-c(3) status in the USA IRS definition of charity was an attempt to establish clear certification that an organization is doing good works and is not "profiting" from those good works. The charity status has certain "third rails" - you cannot issue or sell stock, you cannot be both a charity and a political organization (respect limitations on advocating for specific legislation or candidates), you must file a 990 form and disclose your sources of income, etc.
An obscure IRS tax code for avoiding taxes on income has become, to many decision-makers, a shortcut to definition of good works (karma yoga). It's used as a "certification" for good... (e.g., for helping poor people earn income.)
Churches are 501 (c)3, as are federal and state charted credit unions, veterans organizations, cemetary companies, and ditch and telecommunications infrastructure management companies. You file for the status, and in return you get to pass along tax-benefits to anyone who donates to you, a Midas touch of tax breaks. They pass income to USA donors, via the IRS.
