non-tax-deductible opportunities (e.g. 501c4. . ., even future 501c3s awaiting their 501c3 determination) . . .
I’d note that when an organization files for exempt status within 27 months of its creation, the approval of 501c3 status is retroactive to the organization’s founding. If the approval happens after the donor files their return for the current year, the donor would need to file a 1040-X amended return. So it’s more accurate to say these donations pose a risk of non-deductibility (although I don’t think the base risk is that high).
So people who are willing to file 1040-X, which tax software can do, shouldn’t discount much for application-pending status even if they highly value 501c3 status. This is probably a barrier for people donating through DAFs, employer matching programs, etc. and so I think your broader point that there’s a higher risk of neglected less here is correct.
Even if the organization files late, approved status is at least retroactive to the date of filing.
I’d note that when an organization files for exempt status within 27 months of its creation, the approval of 501c3 status is retroactive to the organization’s founding. If the approval happens after the donor files their return for the current year, the donor would need to file a 1040-X amended return. So it’s more accurate to say these donations pose a risk of non-deductibility (although I don’t think the base risk is that high).
So people who are willing to file 1040-X, which tax software can do, shouldn’t discount much for application-pending status even if they highly value 501c3 status. This is probably a barrier for people donating through DAFs, employer matching programs, etc. and so I think your broader point that there’s a higher risk of neglected less here is correct.
Even if the organization files late, approved status is at least retroactive to the date of filing.
https://www.irs.gov/instructions/i1023
[edited 12⁄2 PM for formatting]