USA INUREMENT - CALIFORNIA NON FORPROFIT

[STAR1441]

Hello-

We are a 501 non for profit.
A longtime member has died, and his widow is asking us for a donation ($11,000) to help with thefuneral expenses.
Is it allowed, or is it a prohibited inurement?

Thanks

Yoram

 

[Steve-LevelUp]

I cannot state with certainty from a tax law standpoint, but I would view this as prohibited. Unless the member was an employee of the organization and was expecting an employment bonus of some kind, at which time the payment would be employement income.

Although I can understand the challenges that the family must be facing at these difficult times, I do not think this payment is permitted.