Interesting Twist on the Conflict Diamond Issue...

[DiamondExpert]

...I suggest you carefully read this....http://www.nationaljeweler.com/nationaljeweler/headlines/article_display.jsp?vnu_content_id=1002726632..and please take the time to read the ENTIRE site,
www.diamondsforafricafund.org and then go to their link to, http://www.brilliantearth.com/index.htm, and read this entire site...

I would be interested in your interpretations of the nature of the relationship between these two entities, one an apparent non-profit NGO and the other a for profit diamond selling Co.


... here is my personal opinion of what I see here...,donate, tax deductible, your "dirty" (read any diamond not with the CanadaMark) diamonds (or a portion of the value thereof) to Diamonds for Africa, and if you go to BrilliantEarth.com and make a purchase we will knock off 5% for you!

I must say this is an interesting business model!...

Perhaps someone associated with either/both of these "sites" can comment.

 

[strmrdr]

interesting.....

 

[denverappraiser]

www.irs.gov has a nifty lookup utility for US taxpayers wishing to make tax deductible donations registered 501(c)3 charities, something Diamonds for Africa Fund claims to be.

Diamonds for Africa Fund is not listed.

Do not make donations to these people unless they can substantiate this claim with documentation provided by IRS.

If you want to make a charitable contribution of personal property to DFA or any other charitable cause, read the IRS rules on this subject carefully (IRS Pub 561) regarding your paperwork requirements. They are considerably more complicated than most people expect, especially for property of significant value.

I sure hope National Jeweler did their due diligence before promoting these people. It looks pretty suspicious to me.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[JohnQuixote]

Rapaport is reporting Diamonds For Africa as a 'not for profit' organization. Neil, maybe they are too new to show on the list (?)

Brilliant Earth, selling CanadaMark diamonds, is donating 5% of their profits to DFA.
DFA advertises Brilliant Earth as a conflict-free alternative on their site.

DFA accepts cash donations and previously worn jewelry to fund relief. My initial question was "what is being done with the previously worn jewlery?" It's reported that all diamonds turned in will be auctioned off in October 2006. No word as to how, where, or under what label they will be auctioned.

 

[denverappraiser]

The Diamonds For Africa Fund website says:

“Diamonds for Africa Fund is a registered 501 c3”
and
“Donate to Diamonds for Africa and we will send you a tax-deductible receipt for its full value as an in-kind donation to claim against your taxes”

The IRS website at https://apps.irs.gov/app/eos/ lists every approved charity as of March 31 2006 and a supplemental list of additions that is supposedly updated weekly. They appear on neither list. It’s certainly possible that IRS has made an error, that the 1 week claim is wrong or that their approval is less than a week old and it’s not on the list for that reason but this is a highly suspicious claim for that reason. IRS approval for this requires the charity to apply, it takes a long time to process an application and approval is a big deal for the charities precisely because it allows them to accept tax-deductible charitable contributions. I called Brilliant Earth to discuss the matter with them and a very nice lady said she would call me back after they have an opportunity to look up the details.

Donations to non-profit or not-for-profit organizations without registered status are not generally tax deductible and attempts to deduct donations to non-approved entities can subject the taxpayer to both interest and penalties. Even if they ARE legitimate, a receipt from the donee is not usually sufficient documentation for a charitable contribution and I would sort of expect a charity that is based on soliciting highly valuable personal property contributions to know the rules better than their website indicates.

I hope it’s legit. It's sort of an interesting idea for a charity, but for now I’m highly skeptical.
Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[denverappraiser]

I got a call back from the lady at Brilliant Earth. She explained that dFA is a division of Indigenous Land Rights Fund (ILRF), a Botswana based non-profit. LRLF is a ‘member’ of International Humanities Center, a California based charity with 501(c)3 status. IHC claims to be able to accept in-kind donations of diamonds on behalf of all member organizations and the proceeds from the sale of donated diamonds will be given to DFA on behalf of ILRF less a small management fee. ILRF has presumably given permission of DFA to distribute donated funds to the causes other than ILRF listed on the DFA website.

Brilliant Earth is an Internet jeweler specializing in Canadamark stones and is a contributor to the cause. Some of their employees were part of the organizational team to set up DFA and continue to be active in the management. Brilliant Earth says they receives no direct benefit from donations to DFA or from the sale of donated property. Presumably other business that would like to donate to DFA could also get a plug on the website but, so far, they are the only one.

This is a plausible, if somewhat complicated, explanation of their structure with regard to receiving donations. Consult with your tax advisor about the possibility of donating to IHC and the effect this may have on your taxes.

http://www.ihcenter.org/
ILRF doesn’t seem to have a website.
Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[Regular Guy]

A related tangent from people who don''t seem to care too much...which is the Department of Motor Vehicles in Maryland. Donating a car has been big business, and has gotten to be bigger business recently, with changes in tax law. On the State of Maryland site, they list "registered" charities, but when I went to the MVA''s official offices, their manager felt comfortable indicating that you could donate your vehicle to a listed organization, or to one not on the list, and both are OK. I didn''t push this beyond a second level, and didn''t pursue this to the hilt. Also, it may not be related. But, as a matter of practice, I expect donations can be made and noted, without what should be the due diligence that anyone who represents they are legit should anyway be concerned about doing, as we should as well, as consumers of these sorts of things.