Where Does the Tax Deduction Go If Rob Ford "Crackstarter" Money is Donated to Charity?
Filed under: Buyer Beware, Celebs & Money, Weird & Wonderful, Taxes
Unless you've been living under a rock, you know that both the Toronto Star and the media news and gossip site Gawker have reported that they have seen a portion of a video that allegedly shows Toronto mayor Rob Ford smoking crack cocaine.You also know that the owners of this video have requested $200,000 in return for a copy of the entire video and that Gawker has been using the crowdfunding website Indiegogo.com to solicit donations from the public for their own "Crackstarter Campaign" in an effort to raise the funds to buy the video and publish it for all to see.
But, then Gawker announced last week that they had lost contact with the owner(s) of the video with the following statement:
"The last time we established contact with the people who are in possession of the video was this past Sunday, and we have not been able to reach them since," wrote Gawker editor John Cook, adding: "If we end up meeting that goal and fail to consummate this transaction, we will-as we promised at the outset-donate the proceeds to a Canadian non-profit that addresses substance abuse issues."
Gawker said they would donate the funds to a Canadian substance abuse charity if the campaign reached it's goal. ($183,450 with 26 hours to go, as I write this) But, who died and made them king? What if Gawker donors don't want to see their money donated to charity and would instead like their money back? Besides, if the money is donated to charity as a plan B, who gets the tax deduction?
These and other questions will be answered after the jump...
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