That is one of the main reasons we went for Non-Profit. We didn't want one of our donors to be penalized by the IRS in case of an audit. The Tax-Exempt part was just a bonus for us.
I agree with you dlf (I always agree with all your posts!) and I personally have never taken a deduction for any of my contributions, I only note what has been said in public by our leadership team (of which I am not a part).
Anyway. To each his own tax return and methods of documentation!
We are not 501c3 but we tell parents they can deduct all dontations/purchases made to our group, anyway, becuase we are 'affiliated' with the school.
Of course, the onus is on the tax payer to make sure their deductions qualify as such..the IRS does not audit the PTO/A but the individual, so its taxpayer beware, and if you make big donations, best you get the tax-exempt status in writing from your PTO/A if there are any doubts by you or your CPA as to validity of deductions made to school's PTO/A.
It's a common misconception for volunteers to assume that because a group functions like a non-profit, that it is technically tax-exempt, even if it has never applied for 501c3 status. There are probably some gray areas, but essentially, until your group files for and earns its 501c3 status, you are not tax exempt. Find out from the treasurer if s/he has a determination letter from the IRS - that will prove your are 501c3.
Critter, that's what I've been told from our treasurer. That we are tax-exempt. I guess we don't declare anything, since I haven't heard anything about filing taxes. The funny thing is, I'm the secretary, and I hardly know what's going on! So I'll ask..I'm curious myself.
