Our horse rescue is not recognized as a 501(c)(3) organization anymore. May we still accept donations but tell the person that they are not tax deductible? We are currently lowering our inventory and the question has been raised.
Yes. You may accept non-deductible contributions and you should tell the donors that the gifts are not deductible. In fact, if your organization has gross receipts (not gross contributions) of more than $100,000 in the year, you are required by the Tax Code to notify the donors of the non-deductibility.
Just because the gift is not a charitable contribution, however, does not mean that you can forget the charitable solicitation registration laws that may apply to your organization. If you solicit contributions for a charitable purpose — and taking care of rescued horses sounds like a charitable purpose — you may be required to register for solicitation purposes even though you are not exempt. Coverage of the charitable solicitation registration laws is not limited to 501(c)(3) organizations; the laws cover anyone using a charitable appeal in an ask.