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Did you know that not all tax-exempt organizations may accept charitable contributions?  All tax-exempt organizations are not created equal.  Organizations that are eligible to receive deductible contributions include:

• most charities described in section 501(c)(3) of the Internal Revenue Code
• 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)
• veterans organizations described in section 501(c)(4) or 501(c)(19)

The good news is that most arts organizations fall under the 501(c)(3) rules that allows groups with a religious, educational, charitable, scientific, or literary purpose to received tax-deductible charitable contributions.

As a potential donor considering where to allocate your hard-earned tithe, it’s somewhat reassuring to know that if an exempt organization is ineligible to receive tax-deductible contributions, it must disclose that fact when soliciting contributions.

However, to be absolutely certain, there are several easy steps you can take to verify an organization’s eligibility.  First, you can ask to see an organization’s exemption letter, which states the Code section that describes the organization and whether contributions made to the organization are deductible.  Or, you can also search for organizations qualified to accept deductible contributions in IRS Publication 78, “Cumulative List of Organizations” and its Addendum, available at IRS.gov.  Or taxpayers can also confirm an organization’s status by calling the IRS at 877-829-5500.

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