Non profit / 501c3
I work for someone that has a horse rescue. They have applied for a 501C3 status. They are non-profit, but the 501c3 is still in process. Is it legal for them to still operate? They have told people that the paperwork is in process, and that donation will not be tax ded. until processing is complete! Also, can they still use the term adoption or adoption fee?
1 Answer from Attorneys
Re: Non profit / 501c3
Not yet being recognized for exemption under 501(c)(3) does not prevent them from being able to operate until approved. It just means they are not yet a tax-exempt entity. Stating that contributions to them are not presently tax-deductible is the right thing for them to do. I'm not sure what you are talking about with respect to "adoption" or "adoption fee". I assume it is to "adopt" the horse. I am not an expert in animal control law, but I see no reason they cannot charge for a service provided.
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