IRS Approves PALA Tax Exempt Status

The Polish American Librarians Association became a tax exempt organization October 7, when it received official notification from the Internal Revenue Service in a letter dated October 24, 2014. Section 501(c) (3) of the Internal Revenue Code makes gifts to PALA deductible on Federal income tax forms as a charitable donation. “Donors can deduct contributions they make to you under IRC Section 170,” the letter says, and, “You’re also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522.”

“We hope that tax exempt status will enable PALA to raise more money for projects and initiatives that will help librarians deliver enriched services to Polish Americans and more fully represent Polish history and culture in library collections,” said Ron Stoch, PALA President. Stoch completed the necessary paperwork earlier this year and submitted the required forms to the IRS in October. “I was surprised and delighted that confirmation of tax exempt status came so quickly and with so little red tape,” he said. “The IRS recently eased the process by putting the forms and instructions online, and we are grateful.”

“While PALA has been a not-for-profit, all volunteer organization for the past five years, tax-exempt status will enable us to be more effective fundraisers,” says PALA Executive Director Leonard Kniffel. For federal income tax, donations are deductible charitable contributions; dues are not considered charitable contributions but may be deducted as an ordinary and necessary business expense, he advised.