I have allowed an emergency needs program seeking their own nonprofit status to use our 501(C)(3) during their waiting period of application. Now they have their own nonprofit standing. Can they file their taxes under their new Tax ID number --or must they file their taxes under mine.
When the new group obtained contributions using your ID, you were responsible for the use of the funds. You should be reporting the gifts and they should be reporting the receipt of the gifts which came "through" your organization on their own organizations' tax return. (See Ready Reference Page: "Charities Must Take Care in Serving as Conduits.") As a separate entity, they need to file their own return.
For more information on conduits/fiscal sponsorship we recommend the following:
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