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Are donations to non-profits with pending federal status tax deductible?
If I donate to a non-profit that is an approved 501(c)3 in their state but their federal charity status is pending, can I deduct the donation from my federal taxes. If not, I suppose I have to wait until they're an official federally recognized 501(c)3 and no longer in a pending period.
4 Answers
- WealthBuilderLv 41 decade agoFavorite Answer
Generally yes. The IRS grants tax exempt status on a "wait and see" provisional basis until the charity turns in certain paperwork, which often can be up to 5 years after opening. Your contributions are deductible...but if the IRS LATER changes its mind and says it's not qualified, then your deductions have to be reversed.
(That kinda sucks, doesn't it?)
- Anonymous1 decade ago
They cannot have state 5019c)(3) status as that is a federal (IRC) designation.
They may be a nonprofit under stane law, but not a 501(c)(3).
I would wait until they are a 501(c)(3) entity.
- brynneLv 44 years ago
The company must have IRS tax exempt staus to be sure that any deductions to be tax exempt. Many nonprofit businesses have not in any respect submitted the perfect software to the IRS, and so as that they are nonprofit, yet not tax exempt. If the corporate has IRS 506(c) exempt status then the donation is tax deductible with the perfect documentation from the exempt company as to the donation given.
- JudyLv 71 decade ago
You need to wait until their 501(c)3 status is approved if you want to take a deduction for your contribution.
