The "Kalahari Children's Home Foundation" is counter part to the Italy-based Association "Mosaico Euroafricano ONLUS" (i.e. non-profit making organization for community work) for the Paolo Zanichelli's Children's Home in Botswana. It is a Texas Not-For-Profit Corporation and is a 501(c)3 Entity, also recognised by the US Internal Revenue Service.
In particular, 501(c) is a provision of the American Internal Revenue Code listing twenty-eight types of non-profit organizations exempt from some federal income taxes. The most common 501(c) organizations include 501(c)3 entities, that is various charitable, non-profit, religious and educational organisations.
Section 501(c)3 is one of the tax law provisions granting exemption from the federal income-tax to non-profit organizations. In particular, 501(c)3 exemptions apply to corporations, and any community chest, fund or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals.
The characteristics of the "Kalahari Children's Home Foundation" are the following:
- The Corporation is organized exclusively for charitable, scientific, educational and literary purposes as defined in Section 501(c)3 of the Internal Revenue Code. Specifically, the Corporation is organized to solicit cash funds, services and donations in-kind for the development, construction and operations of orphanages for HIV-orphaned and needy children in Botswana, Africa including, without limitation, for the benefit of the Association "Mosaico Euroafricano ONLUS", provided always that all activities of the Corporation shall be of a non-profit making nature
- No part of the net earnings of the Corporation shall inure to the benefit of any director of the Corporation, officer of the Corporation, or any private individual, and no director or officer of the Corporation, or any private individual shall be entitled to share in the distribution of any of the corporate assets on dissolution of the Corporation
- No substantial part of the activities of the Corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the Corporation shall not participate in, or intervene in (including the publication or distribution of statements) any political campaigning on behalf of any candidate for public office
- The Corporation shall not conduct or carry on any activities not permitted to be conducted or carried on by an organization exempt from taxation under Section 501(c)3 of the Internal Revenue Code or by an organization, contributions to which are deductible under Section 170(c)2 of the Internal Revenue Code
- Upon dissolution of the Corporation and the winding up of its affairs, the assets of the Corporation shall be distributed exclusively to charitable organizations that would then qualify under the provisions of Section 501(c)3 of the Internal Revenue Code.
Under IRC Section 170, individuals giving to 501(c)3 entities which are either public charities, private operating foundations or certain private foundations may deduct contributions representing up to 50% of the donor's adjusted gross income if the individual itemizes on his tax returns. Individuals giving to 501(c)3 organizations which are private foundations may generally deduct contributions representing up to 30% of their adjusted gross income. Corporations may deduct all contributions to 501(c)3 organizations (regardless of foundation status) up to an amount normally equal to 10% of their taxable income.