Author Topic: Money Laundering  (Read 6655 times)

Workinghard

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Money Laundering
« on: February 23, 2014, 03:44:06 AM »
I'm not looking for a formal charitable trust per se, but is there any type of vehicle that can be set up for anonymously helping people?

We have around 1k a month that we use to help people out in need. I know I could give cash, or PayPal, or write a check but that's linked to us. I don't want thanks or for the recipients to feel obligated. On occasion I've used a couple of friends to give to others.

It would be nice to have an account that would send out electronic checks to individuals without our name on it.  Ideas, anyone?

Tacosrocket

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Re: Money Laundering
« Reply #1 on: February 23, 2014, 03:47:26 AM »
Make a fake name.

warfreak2

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Re: Money Laundering
« Reply #2 on: February 23, 2014, 04:27:22 AM »
Bitcoin.

Just kidding. Forbes has an article on the subject, I don't have anything to add to it, but it looks like you're probably going to need at least a little bit of formalism and/or paperwork.

lithy

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Re: Money Laundering
« Reply #3 on: February 23, 2014, 06:32:04 AM »
Quote
MICHAEL: Uh, launder. "To clean," no. "To wash--" "To conceal the source of money... as by channeling it through an intermediary."  "To conceal..."

SAMIR: That doesn't really help us, Michael.

PETER: I can't believe what a bunch of nerds we are.  We're looking up money laundering in a dictionary.

Sorry, I have nothing useful to add, but I can't hear money laundering without going straight to Office Space.  Congrats on your badass charity giving and wanting to do it anonymously as well, doubling the badassity.
« Last Edit: February 23, 2014, 06:34:04 AM by lithy »

soccerluvof4

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Re: Money Laundering
« Reply #4 on: February 23, 2014, 06:34:48 AM »
I give money every year to a few causes though more local not the big charities. I give them a check and tell them if it is said where the money comes from I wont contribute anymore. That ended any of my concerns, they want the money.

phred

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Re: Money Laundering
« Reply #5 on: February 23, 2014, 07:29:01 AM »
I get a stack of money-orders when i go to the big city.  These are perfect for being anon. as you don't have to sign them with your real name.  I go to the big city so no-one in town connects me with buying a lot of money-orders.  As you mail them out, leave off the return address & disguise your handwriting

At Christmas I fold a couple of hundreds inside a single so it looks like I'm putting two singles into the Salvation Army kettle

I've put money into an envelope and thrown it into a target's open car as I bike by

Waitress always gets a full tip.  If the service is off I'll tell her face to face rather than punish her kids via no money.

It's a bit harder to help the homeless.  I sometimes will hand them a bag of canned goods that can be eaten cold, mount one of my "extra" tires onto their worn out bike.  Since I never give them my real name -- no problems so far

Is there a specific target you wish to help and can't figure out how?

enginr77

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Re: Money Laundering
« Reply #6 on: February 23, 2014, 08:11:16 AM »
Check out modestneeds.org.  You can donate anonymously and the site allows you to pick specific individuals/causes to help.

Workinghard

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Re: Money Laundering
« Reply #7 on: February 23, 2014, 08:40:43 AM »
Thanks for the ideas and suggestions. I will definitely be checking out the websites. We don't itemize so I don't care about a tax deduction and I don't want to be audited. Plus most of what we give is to individuals vs tax exempt organizations.

I never thought about signing a money order with a false name. That could be interesting.

As always, I have to chuckle at some of the responses --lithy,warfreak2. And tobi, I already have a fake name "workinghard" . Haha

Workinghard

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Re: Money Laundering
« Reply #8 on: February 23, 2014, 09:45:39 AM »
The Forbes article was interesting but probable more applicable for giving large amounts or to tax exempt charities.  The same with modestneeds and other similar organizations.  I know some charge a fee.

There are some people I trust, and could use them, but most of them are struggling financially and I don't want it to be awkward. I've used them on occasion but I'm thinking of something more on a regular basis.

Phred, no specific target. Just try to help out individuals that God lays on our heart.

sheepstache

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Re: Money Laundering
« Reply #9 on: February 23, 2014, 10:26:02 AM »
Interesting stuff.  I wonder if sending money orders to a charity causes them paperwork headaches.  They always say they need all your info to comply with Homeland Security or some bs.  But I get sick of them selling my address to all and sundry.

phred

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Re: Money Laundering
« Reply #10 on: February 23, 2014, 10:49:42 AM »
no, no headache issues.  The foodbank I work at frequently gets checks and money-orders in the mail; no problems.  The OP is not talking about moving tens of thousands of dollars

Workinghard

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Re: Money Laundering
« Reply #11 on: February 23, 2014, 03:35:08 PM »
no, no headache issues.  The foodbank I work at frequently gets checks and money-orders in the mail; no problems.  The OP is not talking about moving tens of thousands of dollars

I wish I had tens of thousands of dollars to give away!  It would be rather fun. So far, the max amount at any one time has just been 1k.

Nords

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Re: Money Laundering
« Reply #12 on: February 23, 2014, 05:27:30 PM »
I'm not looking for a formal charitable trust per se, but is there any type of vehicle that can be set up for anonymously helping people?
We have around 1k a month that we use to help people out in need. I know I could give cash, or PayPal, or write a check but that's linked to us. I don't want thanks or for the recipients to feel obligated. On occasion I've used a couple of friends to give to others.
It would be nice to have an account that would send out electronic checks to individuals without our name on it.  Ideas, anyone?
If you're giving to an IRS-approved 501(c)3 charity then the charitable gift funds will keep you anonymous.  Fidelity has a good fund, so does Vanguard, and I think Schwab also has one.

I use DonorsChoose.org to give to school teachers, although your anonymity is only guaranteed by using a different name & mailing address. 

Giving anonymously to deserving individuals is tough.  If this was a Dickens novel then you'd hire a lawyer on retainer to give your cash to people while retaining your anonymity through client confidentiality.  I like Forbes' idea of using your accountant's name on an LLC, although that requires an accountant to really trust you.  Another option could be giving through a church, or asking a local community fund if they'd be willing to do it for you.
« Last Edit: February 23, 2014, 05:30:27 PM by Nords »

Workinghard

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Re: Money Laundering
« Reply #13 on: February 24, 2014, 04:02:40 AM »
I do have an attorney friend that I would totally trust, but his family is struggling financially. I've helped them out in the past so I think it would be kinda awkward.

We don't have an accountant but we do have a tax guy that I also trust. I was going to start doing my own taxes (hate spending the money for him to do it and my calculations marched his for 2012), but last year my husband was out on a long medical leave of absences and there were some tax issues.

We have given through a church if the individual attends our church or if we knew what church they went to. Because of my work schedule, we haven't been able to attend very often lately and had to find one with an evening service. Since our attending is sporadic, we're not really involved. One of the reasons we've gone to helping people versus organizations.

Not trying to shut down ideas--just thinking through them. Too bad Vanguard doesn't have a option outside of IRS approved charities. I think I'll email our advisor.


If you're giving to an IRS-approved 501(c)3 charity then the charitable gift funds will keep you anonymous.  Fidelity has a good fund, so does Vanguard, and I think Schwab also has one.

I use DonorsChoose.org to give to school teachers, although your anonymity is only guaranteed by using a different name & mailing address. 

Giving anonymously to deserving individuals is tough.  If this was a Dickens novel then you'd hire a lawyer on retainer to give your cash to people while retaining your anonymity through client confidentiality.  I like Forbes' idea of using your accountant's name on an LLC, although that requires an accountant to really trust you.  Another option could be giving through a church, or asking a local community fund if they'd be willing to do it for you.

Nords

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Re: Money Laundering
« Reply #14 on: February 25, 2014, 11:27:19 PM »
Too bad Vanguard doesn't have a option outside of IRS approved charities. I think I'll email our advisor.
The rules on what a charitable gift fund can accept have been set up by the IRS. 

For example, I'm not aware of any CGF that would accept a stream of book royalties directly from the publisher and then let me designate the charities that would get the grants.  If I had the power to designate the charities, then clearly it must have been "my" money, so I'd have to pay taxes on it before donating it to the CGF.  I could designate the royalties to go to a specific charity as soon as the book was on the market, but that decision would be irrevocable and I couldn't switch around to other charities.

LibraTraci

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Re: Money Laundering
« Reply #15 on: February 26, 2014, 01:07:04 AM »
I get a stack of money-orders when i go to the big city.  These are perfect for being anon. as you don't have to sign them with your real name.  I go to the big city so no-one in town connects me with buying a lot of money-orders.  As you mail them out, leave off the return address & disguise your handwriting

At Christmas I fold a couple of hundreds inside a single so it looks like I'm putting two singles into the Salvation Army kettle

It's a bit harder to help the homeless.  I sometimes will hand them a bag of canned goods that can be eaten cold, mount one of my "extra" tires onto their worn out bike.  Since I never give them my real name -- no problems so far

Wow.  I'm really impressed.

Am impressed at the spirit of generosity, but also at the ways you find to allow people to save face. 



Fuzz

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Re: Money Laundering
« Reply #16 on: February 26, 2014, 08:35:43 PM »
Love your generosity and spirit.

As far as the Dickens comment, I like to think that most attorneys would be willing to do this for free. All you're doing is sending a letter and a check and saying the donor wishes to be anonymous. For that matter, I don't think the sender really needs to be an attorney. (Yes, it would be a privileged communication and your attorney could not be compelled by Court to identify you in most US jurisdictions. But it's hard to imagine circumstances under which any proxy would be compelled to disclose your name.) So basically anyone that you trust could do it for you. Otherwise cash in an envelope is a nice way to go.

*disclosure, not legal advice.