Does A 508(c)(1)(A) Receive Tax-Deductible Donations

Does A 508(c)(1)(A) Receive Tax-Deductible Donations

According to the IRS, yes it does! But a donor can only give a maximum of 50% of their income as tax-deductible donations. Additionally, 

Here is a quote from page 2 from the IRS Tax Guide for Churches and Religious Organizations:

"Churches and religious organizations may be legally organized in a variety of ways under state law, such as unincorporated associations, nonprofit corporations, corporations sole, and charitable trusts."
These are the four kinds of organizations that the IRS describes as being appropriate for a Christian group that is receiving donations:

1. The unincorporated association
2. The non-profit corporation
3. The corporation sole
4. The charitable trust

Additionally, the IRS has stated that "Gifts That Benefit" have a limited tax-deductibility. By IRS definition, charitable contributions represent gifts given without reciprocity. Supporting a charitable organization by buying merchandise or attending an event puts one into the got-something-in-return category. The price one pays for food, wrapping paper or magazines sold in fundraisers cannot be fully deducted; only the difference between one's purchase price and fair market value qualifies.

For example, paying $10 for a roll of wrapping paper from a school group that carries an $8 price tag in retail outlets gives one a $2 deduction. Likewise, buying a $50 ticket to a charitable event that includes a meal translates into a $20 deduction after subtracting the $30 one would have paid for that meal in a restaurant.

The IRS states in their publication Tax Guide for Churches and Religious Organizations on page 4:
"Note that not every organization that is eligible to receive tax-deductible donations is listed in Publication 78. For example churches that have not applied for recognition of tax-exempt status are not included in the publication."

The IRS does mention this small advantage of being listed in their publication Tax Guide for Churches and Religious Organizations on page 3. There they state in two paragraphs:

"Churches that meet the requirements of IRC section 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS.

Although there is no requirement to do so, many churches seek recognition of tax-exempt status from the IRS because such recognition assures church leaders, members, and contributors that the church is recognized as exempt and qualifies for related tax benefits. For example, contributors to a church that has been recognized as tax exempt would know that their contributions generally are tax-deductible."

Here the IRS states without equivocation that churches are automatically considered tax-excepted.

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