Are contributions to an organization that has not received an exemption determination letter deductible (for example, while an application is pending)?
If an organization is exempt under section 501(c)(3) of the Internal Revenue Code, charitable contributions to it are generally deductible. To be exempt under section 501(c)(3), most organizations must file Form 1023 by the end of the 27th month after they were created. If an organization does so, charitable contributions to it will be deductible back to the date of formation. The extent to which donors may be assured that their contributions will be deductible in advance, however, will depend on whether the organization has—
Timely filed Form 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, but not yet received a letter recognizing its exempt status,
Filed Form 1023 later than the prescribed time, or
Not filed Form 1023.
The short answer is that there is really no way of knowing whether the donation will be deductible until the organization has received its exemption determination letter. Churches and organizations not receiving more than $5,000 per year do not have to file Form 1023 and therefore will not have a determination letter or appear in Publication 78 and yet they may be exempt and donations to them may be deductible.
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