Re: IRS tax exempt status

Aaron K6ABJ

What specific costs are there to maintaining a 501 status? As an accountant for several 501 organizations who have successfully maintained their status, I am unaware of any significant costs, unless of course you get attorneys involved.

As a donor to charitable organizations it is very important to me that the organizations I donate to are recognized as “Charitable” 501(c)(3) organizations. Without such IRS recognition, I cannot deduct my donations on my tax return.

I am not an attorney, so I cannot give legal advice like you can, but to my knowledge only 501(c)(3) organizations can solicit tax deductible donations. In either event, the tax deductibility of my donations is important to me, and it affects how much I give to an organization. I have encountered organizations in the past who hold themselves out as being recognized by the IRS as being a 501(c)(3), when in fact they weren’t, and I am not going down that road again. Such organizations create IRS tax liabilities for me, so they are not included in my regular giving or in my will. I have also been associated with organizations which have elected to convert from a 501c7 to a 501c3 status (at significant cost) to obtain donations that far exceeded the costs of conversion.

Your dismissive and egocentric attitude is unappreciated.


On Sep 14, 2020, at 9:06 PM, "Frazierlaw@..." <Frazierlaw@...> wrote:

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