Have you been solicited by the McHenry County Sheriff's Police Benevolent & Protective Association, Lodge #192, to donate money, goods or services for its Golf Outing this month? Or for any other donation this year or in past years? Remember the April 2 letter that informed you that contributions would be tax-deductible and that it is a non-profit organization?
Well, they aren't, and it wasn't.
When the President of the PB & PA, Eric Ellis, did not reply to my request for a copy of the IRS Determination Letter [relating to 501(c)(3) tax-exempt status], I figured something was up. Or down. The public ought to be able to find out if a group is really tax-exempt. And who better to ask than the president of the group? The tax-exempt status (by IRS) is required for contributions to be tax-deductible as donations to a charity.
The PB & PA is not tax-exempt, according to the Association's Woodstock attorney. He informed me that letters have been sent to those who have already made contributions, informing them that the contributions are not tax-deductible as donations and offering to return contributions to those who made them.
Were they a non-profit organization when the letter was sent out? No.
The PB & PA apparently thought it could ride on the coattails of the State Lodge but now realizes that it cannot. The attorney for the PB & PA said that Not-for-Profit status has been applied for with the Illinois Secretary of State.
Keep in mind that donations to non-profits are not automatically deductible for income tax purposes. The organization must also be tax-exempt by IRS. This distinction is often missed both by those who establish and operate non-profits and by those who want to donate to them.
© 2008 GUS PHILPOTT
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1 comment:
good catch and excellent investigative and follow up skills. I never realized the difference. I will now be asking not only if they are non profit but tax exempt.
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