Redswing's tax tools assume your organization can issue acknowledgment letters. If you are not a 501(c)(3), check with an advisor before you use them.
Draft for legal review: This article describes how Redswing works in plain language. It is not tax or legal advice and an attorney has not reviewed it yet. Ask your tax advisor or attorney about your own situation.
Overview
The Tax receipts tab asks for your EIN, mailing address, and has a checkbox that says "We are a registered 501(c)(3) organization." Redswing is a technology platform. It does not confirm your tax status, and it does not make your payments deductible.
What to do
- Talk to your tax advisor about what you can say to donors. Some organizations operate under a fiscal sponsor. Others are not tax-exempt at all.
- If you are not a 501(c)(3), leave the checkbox unticked. Do not describe payments as tax-deductible on your event page or in messages unless your advisor says you can.
- Unticking the box removes the 501(c)(3) sentence from letters, but the letters still show a "Tax-deductible amount" line. Do not download or send these letters unless your advisor agrees they are accurate for your organization.
- Registration prices, sponsorships, auction, and fees work the same for any organization. Only the tax wording is affected.
Things to know
- Some organizations that are not 501(c)(3)s, such as certain government units or churches, can still receive deductible gifts. Others, such as many social clubs or 501(c)(4) and 501(c)(6) groups, generally cannot. Your advisor can tell you which applies.
- A fiscal sponsor can sometimes accept donations for you. That is an arrangement between you and the sponsor. Redswing does not set it up.
- Charitable solicitation and gaming rules can apply to any organization. See Raffles and gaming laws.