It's official -- Lotus Creations is now an approved 501 (c) 3 nonprofit organization!
Ever since our conception two years ago, a big goal for the organization is to obtain its official status as a 501 (c) 3 organization, recognized by the Internal Revenue Service (IRS). The amount of research, preparation of paper work, and sheer anxiety from anticipating the long wait, trust me, is not small. Therefore, you can imagine the excitement when we opened the letter from IRS last week and received the good news.
According to its definition, 501 (c) 3 is the portion of the US Internal Revenue Code that allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations. What is unique about being a 501 (c) 3 is the tax deductability of donations. 26 U.S.C. § 170, provides a deduction, for federal income tax purposes, for some donors who make charitable contributions to most types of 501 c (3) organizations.
Our effective date of exemption is February 23, 2015. This means that if you have made a donation to Lotus Creations since this date, the money can be deducted from your tax!