Contributions to Organization with IRS Application Pending
Effective November, 4th 2015, Cure4Hunger filed 501(c)(3) Application with the IRS allowing Cure4Hunger to receive donations while application is pending.
When the IRS approves a timely filed exemption application, exempt status is recognized back to the date the organization was created. Thus, while an application is pending, the organization can treat itself as exempt from federal income tax under section 501(c)(3). For example, it must file Form 990 (instead of an income tax return) while its application is pending. However, contributors to the organization do not have advance assurance of deductibility because the organization’s exemption is pending. If the organization ultimately qualifies for exemption for the period in which the contribution is made, the contribution will be tax-deductible by the donor. Alternatively, if the organization ultimately does not qualify for exemption, then the contribution will not be tax deductible. The contributor is NOT assured tax deductibility until such time as the 501c3 status is ultimately granted retroactive to the date of filing.