Fund for Firefighters’ Families Hits Tax Obstacles

A United Way in Riverside County, Calif., hopes to give more than $1-million for the families of deceased firefighters, but it may not be able to distribute the money due to tax concerns, reports The Los Angeles Times.

In managing the money for the families of five federal firefighters who were killed in a local arson fire in October, the Central County United Way did not look into IRS tax law. Regulations stipulate that charitable organizations cannot raise money for a group as small and specific as the firefighters’ families without violating their tax-exempt status.

Federal law allows such organizations to give money to individuals only if they are part of a much broader group of people or if helping such individuals benefits the community at large, such as donations made to Katrina victims.

The Central County United Way’s chairman, Bob Duistermars, said of the snafu, “A lot of this probably has to do with our ignorance about the process. We were all moved by the fact that we had lost friends and family; now we just need to catch up with the law.”