We got an update from the IRS on our tax-exempt status application last week. They need to review our application before making a decision. We submitted our application in October 2011; they are currently reviewing applications from… May 2011. In practice, we don’t expect a decision before June 2012.
This is a big disappointment. While 2011 donations will be retroactively tax-deductible if we are eventually approved, we can no longer expect any matching funds for Seed 100 donations from companies that match employee contributions to tax-deductible charities and our Seed 100 donors cannot deduct their donations in this year’s returns.
We made every effort to speed the processing of our tax-exempt application in part to show our appreciation for our Seed 100 donors. We are deeply grateful to all our donors who are making our work possible, especially during this crucial startup time.
Because of the loss of any matching funds, this does increase the urgency of our current fundraising drive. Please donate and help us keep the Ada Initiative going! Whether or not you can donate, you can help spread the word by email, blog, or tweet.
Please ask your tax professional for advice on your particular tax situation.