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I have never worked a day in public so pardon my ignorance. Financial reporting in industry is my area of knowledge.
I do bookkeeping for one of my daughters sports leagues. Came to realize they let a lot of stuff lapse AND they were telling people that they were a 501c3. Well I put a quick stop to that, got them all squared away with the state, but went to a CPA firm to have them request the 501c3 because I know the wording on the application has to be specific, yadda yadda, and I didn’t want to learn on the fly,
This CPA is telling me that because we are in process with the IRS to obtain 501c3 status, its ok to tell potential donors that their donation is deductible. This makes me nervous, to be honest. What if god forbid the IRS denies the application, or if it takes longer than 4 months. I’d prefer NOT to tell people we are a 501c3 until they could look us up and see proof on the IRS website. I’ve asked around and been told by multiple people its ok to start taking donations.
Do tell why would it be ok to say we’re tax exempt if we’re not………yet?
FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75Massachusetts CPA (non reporting) since 3/12.
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