06/10/2011

Check Before You Donate: Some Charities Just Lost their Federal Tax Exemption

HARTFORD, June 10 – Consumers who will be making charitable donations in upcoming weeks and months may want to double check to be sure their donation will be tax deductible, the Department of Consumer Protection advised today. On Wednesday, June 8th, the Internal Revenue Service (IRS) released its initial list of organizations whose federal tax exemption has been revoked under a new IRS program. Tax exempt organizations that fail to file an annual informational return with the IRS for three consecutive years automatically lose their federal tax exemption. 

There are more than 2,100 newly non-exempt Connecticut organizations. You can view the entire list and learn more about the automatic revocation program online at: http://www.irs.gov/charities/article/0,,id=239696,00.html

“Once the IRS announces that an organization’s tax exemption has been revoked, contributions to that organization are no longer deductible for tax purposes by donors,” Consumer Protection Commissioner William M. Rubenstein said today. “Donors should check with their professional tax preparer on all tax issues. In addition, donors should be aware that organizations that have had their federal tax exemption revoked by the IRS may have other management issues.” 

Connecticut donors are also encouraged to check with the Department of Consumer Protection’s Public Charities office to be sure any charitable organization which solicits a contribution from them is registered as required by law, or on file as exempt from registration. 

This can be done by going to http://www.ct.gov/dcp and clicking on “Verify a License” under the column titled “For Licensees and Applicants.”  On the next screen select “Lookup a License,” scroll down the “Available” box and select “Charity,” then click on the > sign to add the Charity category to a search. Type all or part of the charity name in the appropriate box and select “Search.” Be sure to scroll down to see your results. For more information or assistance, contact the Public Charities office at (860) 713-6170 or by email at CtCharityHelp@ct.gov.

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Media Contact: Claudette Carveth
860-713-6022
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