As a 501(c)(8) organization can I accept donations for a charity?

[vitopulito]

I belong to a 501(c)(8) organization and have a fund raiser to send military personnel home for the holidays. Can I accept these funds and provide a tax deduction to the respective organizations?

[Anonymous · Accepted solution]

Contributions

For Charitable Purposes Are Deductible

IRC 170(c)(4) provides that, in the case of a contribution or gift by any

individual, the term “charitable contribution” includes a contribution or gift to

or for the use of a domestic fraternal society, order, or association, operating

under the lodge system, but only if such contribution or gift is to be used

exclusively for religious, charitable, scientific, literary, or educational

purposes, or for the prevention of cruelty to children or animals.

Contributions for fraternal or social purposes are not deductible. 

thus contributions would be deductible if using the funds to send military personnel home for the holidays would be a qualified use.    also have to look at orgs bylaws and laws of state in which it operates.  consult an attorney.   

[Opus 17]

I'm not familiar with that type of organization other than what I can research online in 2 minutes.  You should ask your organization's head office, CEO, board of directors, or attorney.  (And, even if the organization is allowed to accept tax-exempt donations, they may not want YOU signing the receipts, depending on their organizational structure and internal policies.)

Generally, your organization must be listed here https://www.irs.gov/charities-non-profits/tax-exempt-organization-search

Publication 557 says this about your type of organization 

"Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. "

https://www.irs.gov/publications/p557#en_US_201901_publink1000200338

As I am not an expert, that sounds like donations may be exempt if used directly for a charitable purpose but may not be exempt if used for the organization's general operating expenses.  So depending on exactly how the fundraiser proceeds will be spent, they might only be partly deductible.

But this is really a question for the head office, treasurer, CFO, or attorney.

[Critter]

https://wagenmakerlaw.com/blog/peek-inside-fraternal-societies-501c8-and-501c10s