Thread Starter: Greg
Title: Re: Charitable organization
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For CIP purposes you need a legally existing entity. In Michigan that means it must either be a DBA titled in the owner's name or an entity ( Inc, LLC, etc) registered with the State.
You are under no obligation to monitor what's done with the fund. That being said, if you believe he may be defrauding donors you should file a SAR - assuming the threshold is met.
Caution your tellers about "donation receipts." Unless the entity has a not for profit determination letter from the IRS "donations" are not tax deductible.
True example: a young wife and mother in our community disappeared. Her husband asked our manager to open an education account for their daughters. I refused, the local credit union opened the account. Thousands of dollars were donated - he cashed out and moved out of state. Eventually he was arrested and returned here to stand trial for murder and tax evasion for failure to claim the donations as income. Guilty on both counts. There were multiple stories in the media about the credit union that collected money for a wife killer.
Be charitable but dot your I's and cross your T's.
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