Pearsons, Who Pledged $100M to UChicago, Want Their Money Back

Re:Pearsons, Who Pledged $100M to UChicago, Want Their Money... by majos on Monday March 05, 2018 @07:34PM (#16525910)

I'm not suggesting this is what's happening, but: does anyone know the financial implications of making a (presumably tax-deductible) charitable donation that you later revoke?

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Re:Pearsons, Who Pledged $100M to UChicago, Want Their Money... by hidenotslide on Monday March 05, 2018 @07:56PM (#16526023)

I'm sure it is structured in a way that mitigates that issue. E.g. donate to an intermediary trust for the tax benefit, then that trust makes the gift to the university. In fact the article seems to name this entity as the Pearson Family Foundation.

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Re:Pearsons, Who Pledged $100M to UChicago, Want Their Money... by jjeaff on Monday March 05, 2018 @08:28PM (#16526175)

Likely nothing in this case. You don't get deductions up front. Only when money is provided. And the deduction would be walked back on refund.

But in this case, it is a non profit donating to another non profit institution. So there are no real tax implications anyway.

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Re:Pearsons, Who Pledged $100M to UChicago, Want Their Money... by cowsandmilk on Tuesday March 06, 2018 @08:04AM (#16528554)

> But in this case, it is a non profit donating to another non profit institution. So there are no real tax implications anyway.

There are implications. A private foundation has required distributions[0] and this could impact that. My guess is the IRS would be reasonable if this donation was returned, but there could be issues, especially if the foundation had delayed past distributions in order to fund this major project.

[0] https://www.irs.gov/charities-non-profits/private-foundation...

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