Can you accept donations yet? | All In One Nonprofit

Free Nonprofit Starter Kit

The timing question

You can accept money anytime: even before the IRS recognizes you. What changes with timing is whether those gifts are tax-deductible for the donor.

The key rule: if you file your IRS application within 27 months of forming your nonprofit, your tax-exempt status, and donors' deductions, are generally retroactive to your formation date. Miss that window and deductibility may only start later.

Are your donations deductible?

Find your situation:

Where you stand

You have your Determination Letter → gifts are deductible, generally back to your formation date if you filed within 27 months.
Applied, still waiting → you can accept gifts now; tell donors deductibility is pending and will likely apply retroactively once approved.
Not yet incorporated or applied → gifts are not deductible yet. Consider a fiscal sponsor if you need deductible giving today.

What to tell donors, and the receipt rules

However you stand, a few habits protect both you and your donors:

Be upfront about your status, never imply deductibility you don't have yet.
Send a written acknowledgment for every gift, with the IRS-required wording.
For any gift of $250 or more, the donor needs a written acknowledgment to claim it, including whether they got anything in return.

Tracking gifts and sending compliant acknowledgments automatically is what the donor-management tools handle for you.

Start collecting the right way

The Fundraising & Development Suite manages donors and generates compliant acknowledgment letters; if you're not formed yet, the Nonprofit Formation gets you there.

See the suites → ← Back to all kits