Tax

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SoScience

Advise on Whether Prize Money is Subject to Taxation

Summary:

Advise a social enterprise committed to ethical research and innovation on whether prize money is subject to taxation.

Referred by:

Jurisdictions: U.S.
About the Organization: SoScience specializes in responsible research and innovation. They support scientists in both public research institutions and private R&D laboratories in orienting their research collaborations to make sure that (1) they answer social and environmental challenges and (2) they collaborate with civil society organizations on the ground in doing so.
Legal Entity Type: For-profit
SDG(s):Partnerships to achieve the Goals
Legal Issue(s):

In 2018, SoScience and its founder received the prestigious Grinnell College Innovator for Social Justice Prize. Unfortunately, SoScience’s founder made a mistake when filling out the tax forms and a 30% tax was applied to the prize. Due to a bilateral agreement between France and the United States, she believes the money was not subject to taxation. In 2019, with the assistance of a French attorney, she submitted a letter to the IRS. The IRS sent a check for half the amount, which SoScience’s founder has not yet cashed. She is seeking assistance from an attorney in the US to: (i) determine whether the prize money was subject to a US tax; and (ii) if not, assistance contacting the IRS or guidance on next steps she can take. She has tried contacting the IRS on her own, but has not received a response.

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SolarBuddy

Advise on Prospective Carbon Offsetting Initiative

Summary:

Assist a social enterprise working to end extreme energy poverty by answering discrete questions about a prospective carbon offsetting initiative.

Referred by:

  • Other
Jurisdictions: US
About the Organization: SolarBuddy is a nonprofit committed to gifting millions of solar lights to children living in extreme energy poverty, while simultaneously educating and inspiring people around the world to be agents of change and end extreme energy poverty by 2030.
Legal Entity Type: Nonprofit/Charity
SDG(s):Affordable and Clean Energy, Climate Action, Good Health and Well Being, Partnerships to achieve the Goals, Quality Education
Legal Issue(s):

SolarBuddy plans to provide a tax-deductible giving platform to employees via their employer to offset their carbon production both during their working days and personal life. This process/program will include involvement from SolarBuddy’s carbon trading partner, as well as a social enterprise dedicated to innovative carbon reduction programs. SolarBuddy is now seeking a consultation to discuss whether SolarBuddy can offer the employers mentioned above certain carbon credits as an incentive to participate in the payroll giving programs. They have some discrete questions ranging from whether employee benefits laws are implicated to possible effects on tax deductions for charitable donations. The SolarBuddy team would appreciate assistance by August 31st if possible.

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Elpida Social Capital

Consultation on Tax Implications of Anonymous Wealth Transfer Platform

Summary:

Provide a tax consultation to a financial education startup dedicated to closing the racial wealth gap.

Referred by:

Jurisdictions: U.S. (headquartered in VA)
About the Organization: Elpida Social Capital (“Elpida”) is a financial education firm dedicated to closing the racial wealth gap by using financial and social capital to invest in historically marginalized communities.
Legal Entity Type: For-profit
SDG(s):End Poverty, Good Health and Well Being, Reduced Inequalities
Legal Issue(s):

Last year, the team at Elpida launched the Black Student Debt Freedom (BSDF) fund in an effort to crowdfund and pay off black students’ education loans. They are now in the process of transitioning the BSDF fund into an anonymous wealth transfer platform called Jubilant Circle, which aims to close the racial wealth gap by paying off student loans, facilitating asset transfers, and offering culturally appropriate financial coaching. The Elpida team is seeking a consultation to discuss a few discrete questions about the tax implications of running Jubilant Circle.

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Alaska Fellows Program

Tax Consultation

Summary:

Provide a tax consultation to an organization that connects young Alaskans with high-impact opportunities in the state.

Referred by:

  • Anonymous Collaborator
Jurisdictions: U.S. (Alaska)
About the Organization: Alaska Fellows Program (AFP) is a fall-to-spring residential program that nurtures the next generation of Alaska-based leaders by pairing them with professional mentors and connecting them with non-profit or public-sector organizations for fellowships.
Legal Entity Type: Nonprofit/Charity
SDG(s):Decent Work and Economic Growth, Industry Innovation and Infrastructure, Peace, Justice, and Strong Institutions, Reduced Inequalities
Legal Issue(s):

Alaska Fellows Program is a fiscally sponsored organization, currently in the process of establishing a 501c3. Their program participants are paired with non-profit and public-sector organizations and paid a modest living stiped. Because the program is not tied with an academic institution and geared towards young professionals/recent graduates (rather than current students), participants are currently paid as private contractors. However, the AFP team is seeking a consultation to discuss avenues/the possibility of making the stipend tax-free. In that same consultation, if possible, they would also appreciate assistance with a few discrete questions about the tax implications of purchasing cars/properties for use in connection with the program.

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