Non 501(c)(3) contribution

[Kea]

My client donated $7000 to his Temple. The letter states that the information is provided pursuant to Section 170(f)(8), but does not state that it is a 501(c )(3). organization. I checked their website and found that they are a Section 504 corp. Per IRS, this means that they do too much lobbying to be a 501(c )(3).

They do meet the deduction requirement of being a religious organization. Is that sufficient, or does the Section 504 status disqualify it from being a charitable deduction?

(If it doesn't qualify, why would they provide the information, specifically referencing Section 170(f)(8)?)

Thanks.

[kcjenkins]

§170(f)(8) does not prohibit the deduction, it merely sets specific rules that must be met for the contribution to be deductible.

[Kea]

I realize that Section 170(f)(8) does not disallow it. But, does being a Section 504 and not 501 ( c ) ( 3 ), disallow it?

[kcjenkins]

As I understand it, §504 relates to the organization itself losing it's taxexempt status, but does not address the deductibility of contributions by the donors. I think you just have to check to see if the organization is listed in Pub 78. If it is, then it's deductible. If not, it's not.

[Kea]

Thanks KC. That's a great resource. I never heard of it before. We're always learning. This board rocks!

Unfortunately, his temple wasn't listed.

Thanks again.

[MAMalody]

If his temple is part of a national organization, they may be covered under a blanket exemption. You may want to check that out.