Important Facts about Tax Exempt
Organizations
Every
year, millions of taxpayers donate money to charitable organizations.
Here are things you should know about the tax treatment of
tax-exempt organizations.
1. Tax returns are made
available to public. Exempt organizations generally must make their tax
return available for public inspection. This also includes the
organization’s application for exemption. These documents
must be made available to any individual who requests them, and must be
made available immediately when the request is made in person. If the
request is made in writing, an organization has 30 days to provide a
copy of the information.
2. Donor lists generally are not public information. The list of donors
filed with Form 990 is specifically excluded from the information
available for public inspection. There is an exception for donors to
private foundations and political organizations, which must make their
donor list available to the public.
3. How to find tax-exempt organizations. The easiest way to find out
whether an organization is qualified to receive deductible
contributions is to ask them, as most will be able to tell you. You can
also search for organizations qualified to accept deductible
contributions in IRS Publication 78, available online at IRS.gov.
4. Which organizations may accept charitable contributions. Not all
exempt organizations are eligible to receive tax-deductible charitable
contributions. Organizations that are eligible to receive deductible
contributions include most charities described in section 501(c)(3) of
the Internal Revenue Code and, in some circumstances, fraternal
organizations described in section 501(c)(8) or section 501(c)(10),
cemetery companies described in section 501(c)(13), volunteer fire
departments described in section 501(c)(4), and veterans organizations
described in section 501(c)(4) or 501(c)(19). For more general
information on the rules for Charitable Contribution Deductions, you
can go to the IRS Publication 78 Help page, Part II, which is linked
from the Search for Charities page on IRS.gov.
5. Requirement for organizations not able to accept deductible
contributions. If an exempt organization is ineligible to receive
tax-deductible contributions, it must disclose that fact when
soliciting contributions. Check Here if an Organization is Tax Exempt.
IRS
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