Frequently Asked Questions about the Rampant Lion Foundation
Q: Is the Rampant Lion a charity to which I can make a tax deductible contribution?
A: Yes, the Internal Revenue Service has ruled that the Rampant Lion Foundation is a qualified 501(c)(3) charity, and further, that it is not a private foundation. If you are a US citizen, you may deduct your contributions to the RLF on the same basis as you do other charitable contributions. If your are a citizen of Canada, the RLF is presently working on forming a strategic partnership with a qualified Canadian foundation to which tax deductible contributions may also be made. To view a copy of our favorable determination letter from the IRS, click here. You can gain more information about charitable organizations by checking Guidestar at: http://www2.guidestar.org/Home.aspx
Q: I've heard that qualified charities have to publish their tax returns. Is this true?
A: No, there is no such requirement. We are however, required to furnish a copy to qualified persons who ask for one. To save us both trouble, you may download a copy of our most recent US return, filed on form 990, for the fiscal year ending June 30, 2009, by clicking here.
Q: I heard there’s some kind of a special "deal" for charitable contributions from an IRA. What’s that all about?
A: Persons aged 70½ or older, whether or not they itemize deductions, are eligible for special treatment. There must be a direct transfer of money from the IRA to the charity. The maximum amount that an IRA owner may transfer annually is $100,000. Transferred amounts are counted in determining whether the owner has met the IRA’s required minimum distribution rules. Under these circumstances, there is no income tax on the transferred amount.
Q: When I was younger, I bought life insurance to cover estate taxes and to protect my wife and kids. Now I’ve reached a point where I don’t need it for those reasons anymore. Can I benefit DKE with my policy?
A: Yes. For a full analysis of estate planning opportunities involving the Rampant Lion Foundation, have your attorney or financial planner contact the RLF staff - but here are a couple of ideas:
1. Cashing in the policy can have income tax consequences to you. The IRS has ruled, in Internal Revenue Ruling 2009-13, that, under §72(e) of the Internal Revenue Code, the excess of surrender value over premiums paid is taxed as ordinary income. On the other hand, a gift of the policy to the RLF produces an immediate charitable income tax deduction for you. The foundation can decide whether to keep the policy as a paid up policy and collect the face amount at your death, or cash the policy immediately with no tax consequences since, as a tax exempt organization, it pays no income tax. A third alternative would be for you to continue paying premiums each year as an additional deductible donation to the RLF, so the full face value of the policy would be received at your death.
2. If you have highly appreciated property which would produce a substantial capital gain tax if sold, consider donating that property to the RLF, and replacing its value with a policy on your life, which can be kept out of your estate, and use the proceeds of the policy to replace the value of the donated property for your heirs at the time of your death.
Q: I've heard that the Rampant Lion Foundation is behind in having audited financial statements prepared. What's the status of RLF audit(s)
A: We're pleased to tell you that the audited financial statements for years ending June 30, 2008, 2007 and 2006 have now been completed, and delivered. You can review them at your leisure by clicking here. A new accounting firm, Kessler, Orlean and Silver has been engaged to prepare both our tax return and audited financial statement for the year ending June 30, 2009, and we hope to have both available by January, 2010. You can learn more about our new accountants by visiting their website:
Q. Can I make a payment direct to a supplier of goods or services to the Rampant Lion Foundation and still get a charitable contribution deduction on my income tax return? Example: the Foundation needs equipment to carry out its educational fund, including an LCD projector that can be used for presentations to chapters or alumni groups.
A: You may make the payment and claim a charitable contribution deduction. A donor may claim a charitable contribution deduction for a gift "to or for the use of" a charitable organization For instance, the Foundation needed a flatbed scanner to assist in emailing material from one office to another. The best price on the needed unit was available on Amazon.com® and our Donor had an "AmazonPrime®" membership, which entitles him to two-day free shipping, so he purchased the unit and had it shipped direct to our office in Beria, KY, where it was needed. He received nothing in return (except our deep and abiding gratitude) so he is entitled to deduct the full price as a charitable contribution.
RLF will provide an acknowledgment that you made the payment to the vendor on our behalf. (It is a payment and not an in-kind donation.) RLF will also state whether you received any goods or services in return, and, if so, the value of such goods or services.
You could also give a check to RLF and RLF could use the money to pay the vendor. That is a more usual way to do it, but either method will work.
To find out what equipment and what services are needed by the Foundation, contact Lin Hanson at 847 567 9600.