Ruling on Tax-Exempt Status

The IRS has given advance notice that the DCWA will qualify as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code.

The news came in an “advanced determination ruling” from the IRS. Because the Association is a newly created organization without a track record, the final ruling by the IRS will be made in 2007.

In the meantime, the advanced ruling means that the IRS will consider donations made to the Association between its incorporation April 22, 2003, and December 31, 2007, to be tax-deductible to the extent allowed by law.

Among other things, the IRS ruling opens the door for the DCWA to seek funding for its educational activities from private foundations that only support tax-exempt organizations.