HawkHead wrote:As a CPA dealing with the IRS on a daily basis this is false. Organization operate as non-profits all the time without final IRS approval. The only time it matters is when you have to file a tax return and for 501(c)3 that want to guarantee that yor donation is tax deductibe. And that doesn't stop 501(c)3s from sending out those letters before the IRS affirms their status.
Interesting, and thank you for the correction. As a follow-up, would they have to disclose donors prior to approval, and if the duration between their application and approval extended into a new tax year, would it affect how they filed tax returns?