Nonprofit not llisted in publication 78


V

Vikeman

I am treasurer for a volunteer fire board who is a 501c(4).
While I realize not all contributions to 501c(4)'s are tax
deductible by the donees, it is my understanding that
contributions to volunteer fire departments such as ours ARE
tax deductible based on some research done by our
accountant.

My question is how do we get listed in IRS publication 78?
It appears that only 501c(3) organizations are listed there
currently. Must we change our filing status to 501c(3) to be
listed, or is there another procedure?
 
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T

Tim

Vikeman said:
I am treasurer for a volunteer fire board who is a 501c(4).
While I realize not all contributions to 501c(4)'s are tax
deductible by the donees, it is my understanding that
contributions to volunteer fire departments such as ours ARE
tax deductible based on some research done by our
accountant.

My question is how do we get listed in IRS publication 78?
It appears that only 501c(3) organizations are listed there
currently. Must we change our filing status to 501c(3) to be
listed, or is there another procedure?
To be listed in Pub. 78 usually requires the granting of
501(c)(3) status by the Service. Your organization, however,
even as a 501(c)(4) is eligible under the terms of Revenue
Ruling 74-361. In that RR, it was implied a volunteer fire
company should apply for exempt status (for charitable
purposes) using Form 1023. But given that RR is over 30
years old, I recommend you contact the specialists in the
TE/GE Division of the IRS to determine the current
requirements for recognition of a 501(c)(4) with a view to
allowing for deductible contributions. In the alternative,
deductible donations may be directed to the political
subdivision most closely affiliated with your fire company,
as all government agencies are per se charities under IRC
170A and need not be listed in Pub. 78.

Tim
 
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A

A.G. Kalman

AlVikeman said:
I am treasurer for a volunteer fire board who is a 501c(4).
While I realize not all contributions to 501c(4)'s are tax
deductible by the donees, it is my understanding that
contributions to volunteer fire departments such as ours ARE
tax deductible based on some research done by our
accountant.

My question is how do we get listed in IRS publication 78?
It appears that only 501c(3) organizations are listed there
currently. Must we change our filing status to 501c(3) to be
listed, or is there another procedure?
See Part II of the Pub 78 Help
(http://www.irs.gov/charities/charitable/article/0,,id=134331,00.html)
where it states that nonprofit volunteer fire companies are
qualified organizations under IRC Sec. 170(c).
 
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S

Stuart A. Bronstein

Vikeman said:
I am treasurer for a volunteer fire board who is a 501c(4).
While I realize not all contributions to 501c(4)'s are tax
deductible by the donees, it is my understanding that
contributions to volunteer fire departments such as ours ARE
tax deductible based on some research done by our
accountant.
Contributions to 501(c)(4) organizations are NEVER
deductible unless they are qualified business expenses.

You might be able to accept deductible contributions if it's
an arm of a municipality.
My question is how do we get listed in IRS publication 78?
It appears that only 501c(3) organizations are listed there
currently. Must we change our filing status to 501c(3) to be
listed, or is there another procedure?
You have to change to a (c)(3). It's a whole different IRS
form, and is not quite as easy to get.

Stu
 
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C

cpabakem01

Vikeman said:
I am treasurer for a volunteer fire board who is a 501c(4).
While I realize not all contributions to 501c(4)'s are tax
deductible by the donees, it is my understanding that
contributions to volunteer fire departments such as ours ARE
tax deductible based on some research done by our
accountant.

My question is how do we get listed in IRS publication 78?
It appears that only 501c(3) organizations are listed there
currently. Must we change our filing status to 501c(3) to be
listed, or is there another procedure?
IRS Help With Tax Questions
You can ask the IRS (as above) on this site

http://www.irs.gov/help/page/0,,id=120294,00.html

Milt Baker CPA
 
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B

Bill Brown

Vikeman said:
I am treasurer for a volunteer fire board who is a 501c(4).
While I realize not all contributions to 501c(4)'s are tax
deductible by the donees, it is my understanding that
contributions to volunteer fire departments such as ours ARE
tax deductible based on some research done by our
accountant.

My question is how do we get listed in IRS publication 78?
It appears that only 501c(3) organizations are listed there
currently. Must we change our filing status to 501c(3) to be
listed, or is there another procedure?
Only donations to 501c(3) organizations and governments
(federal, state, local) are tax deductible as charitable
contributions. So, yes, you have to change what you are to
become a qualified organization.
 
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cballard

Vikeman said:
I am treasurer for a volunteer fire board who is a 501c(4).
While I realize not all contributions to 501c(4)'s are tax
deductible by the donees, it is my understanding that
contributions to volunteer fire departments such as ours ARE
tax deductible based on some research done by our
accountant.

My question is how do we get listed in IRS publication 78?
It appears that only 501c(3) organizations are listed there
currently. Must we change our filing status to 501c(3) to be
listed, or is there another procedure?
Only public charities that are exempt from tax under
501(c)(3) are eligible to be listed in Pub 78.

I'm curious about the authority your accountant found that
would allow a charitable deduction for a donation to a
501(c)(4) organization. Under Code section 170(c),
charitable deductions are normally only allowed for the
following:

1. Gifts to units of government for public purposes
2. Gifts to 501(c)(3) organizations
3. Gifts to veterans' posts
4. Gifts to fraternal lodges for charitable purpose
5. Gifts to nonprofit cemetery companies

The volunteer fire board wouldn't seem to fit into any of
these. Under Code section 6113(a), a solicitation for
contributions from a 501(c)(4) organization generally must
contain an express statement that contributions or gifts to
the organization are not deductible as charitable
contributions for Federal income tax purposes.

--Chris
 
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A

A.G. Kalman

Bill said:
Vikeman wrote:
Only donations to 501c(3) organizations and governments
(federal, state, local) are tax deductible as charitable
contributions. So, yes, you have to change what you are to
become a qualified organization.
I am not aware of anything in the IRC that requires only
donations to Sec. 501(c)(3) organizations to be deductible.
Charitable contribution deductions are defined in IRC Sec.
170(c) not 501(c).

A contribution to a Sec. 501(c)(4) organization qualifies as
being deductible as long as the organization meets the
definition and use of funds in accordance with Sec. 170(c).
 
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