Charitable donation refund, charity dissolved; what to do.
Hi Terry,
In 2024 I gave the Morton College Scholarship Foundation $5,000.00 to use for a scholarship in my dead sister’s name. In early 2025, I have them another $5,000.00 for the same purpose. Now, 18 months later, I find they never gave out the money. I asked them to return the money, which they did, and they told me the Foundation was dissolving (This was confirmed to me by Joe Topinka, a board member).
Here is my question: Do I file amended returns for the deduction I took in 2024 and 2024, or do I report the $10,000.00 they have just returned (so 2026) and pay tax on that money?
I don’t know if I need an CPA, or a Tax Attorney to solve this.
Thank you so much for all you do for consumers!
Sincerely,
J. J
PS…some funny stuff going on with the charity, they never filed State tax returns since 2022, and other donors has similar experiences with the manager, which prompted my request for a refund.
Terry Says
Whew, I really don’t know the answer to this question. I don’t think you would file amended returns, but you might have to take the returned money as income on this year’s return. But that’s just a guess. Let me contact my experts at TurboTax and see if they have a correct answer.
