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Can we limit our assistance to specific individuals, like our affected employees?

October 5 2020 11:57 pm

It depends. Charities must use their resources for the benefit of the public. The group of people eligible for assistance must be sufficiently large or indefinite to constitute a “charitable class.” A charitable class is essentially the cross-section of the public you intend to serve. Efforts to assist a pre-selected co-worker or their family members would not be charitable in the technical tax sense, since the group of people served would be both too small and too definite to make up a charitable class. (It would still be a good thing, just better suited to a supportive platform like GoFundMe.)