DNC donors beware.
The fundraising committee for the Democratic National Convention has not yet received its tax-exempt designation by the Internal Revenue Service. That means that donors, both individuals and corporations, who were counting on deducting their contributions from their taxes could be in for a costly gift.
Philadelphia 2016 Host Committee, which is charged with raising $60 million for the convention to be held next month at the Wells Fargo Center, has not yet received its 501(c)3 federal tax-exempt designations from the Internal Revenue Service. The host committee applied for its tax-exempt charity status more than a year ago.
In March, a committee spokeswoman said the tax-exempt application had been put on hold because of "technical questions." On Thursday, an IRS agent confirmed that the host committee has not been offered a formal determination for tax-exempt status. The committee's application is still pending.
If the host committee ultimately gets its tax-exempt status, the designation is retroactive to when the committee applied in May 2015. If the organization does not receive an exemption, the contributions received will not be tax-deductible, according to the IRS.
"They are aware that we don't have a determination yet," Adams-Sarthou said. "But so far, they have been receptive and we are still able to bring money in."
The host committee has refused to disclose its donors or exact amount it has raised, despite an order from the state Office of Open Records for the release of its quarterly fundraising reports. Sarthou-Adams said the committee is counting on $10 million to come from the state and after that, $4 million would remain to be raised before the big event July 25-28.
The Cleveland 2016 Host Committee for the Republican National Convention received its 501(c)3 status in August 2014.
"We are still waiting to hear from the IRS on specifics. Quite frankly, I don't know what's taking so long," Adams-Sarthou said. She declined to specify what the IRS initially flagged in its application.
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