Bear Canyon Farm was formed on May 25, 2017, as a nonprofit organization in the state of Montana. The organization’s application for tax exempt status under Section 501(c)3 is pending before the Internal Revenue Service. During this interim period, the organization can treat itself as exempt from federal income tax under section 501(c)(3). However, contributors to the organization do not have advance assurance of deductibility because the organization’s exemption is pending. If the organization ultimately qualifies for exemption for the period in which the contribution is made, the contribution will be tax-deductible by the donor. Alternatively, if the organization ultimately does not qualify for exemption, then the contribution will not be tax deductible. We recommend consultation with a qualified tax professional if you have questions about tax deductible contributions.
Since it can take as long as a year for our IRS tax exempt status to be approved, we have arranged with Mount Ellis Academy to take donations so that it can be assured to be tax deductible while our application is pending. This is called a fiscal sponsor arrangement and it allows all donations that go through MEA to be tax deductible to the donor, regardless of Bear Canyon Farm’s status. We are considered a project under their tax-exempt status until we receive our own, as long as all of our activities remain in compliance with our fiscal sponsor contract. Feel free to contact us with any questions regarding this arrangement.
NOTE: If you would like to learn more about fiscal sponsor agreements, please read the following link for more information:https://www.councilofnonprofits.org/tools-resources/fiscal-sponsorship-nonprofits