Charitable Contributions, Pending Exemption and Deductability
July 21, 2008 2:45 PM Subscribe
If you have filed for exemption with the IRS for a nonprofit you are starting and your status is pending while they review, I understand that you can still solicit donations and generally when your exemption is granted your exempt status applies retroactively to your date of incorporation. But how are the donor's charitable contributions treated? Can they deduct the tax year they donate or do they have to wait until the tax year in which exemption is granted (if the pending period lasts until a new tax year)? Or is it also retroactive and they would have to amend their previous tax return once the nonprofit gains exempt status?