Ed Rendell, the former mayor of Philadelphia and governor of Pennsylvania, made a mistake that could cost some fellow Democrats big bucks.
Rendell — chairman of the Philadelphia 2016 Host Committee for the Democratic National Convention — failed to obtain 501(c)(3) nonprofit, tax-exempt status before collecting money, and now his donors can’t get tax deductions on their contributions.
“Rendell’s scrambling to fix the situation,” one source told me. “He’s been calling donors telling them, ‘I messed up, but don’t worry. I’ll get it straightened out.’ ”
The donors were expecting 501(c)(3) documents as proof that they could deduct their donations from their 2015 taxes due next month. Now they will have to file for an extension.
Rendell — who spearheaded the effort to raise the $60 million the July convention will cost — didn’t return calls.
“We filed our paperwork for our (c)(3) status in May 2015. There were no mistakes, but we are in the process of addressing the feedback we received from the IRS,” convention spokeswoman Anna Adams-Sarthou said.
“We have been communicating with the individuals that this delay may affect, of which there are few, and fully expect to have the (c)(3) status well in advance of the convention.”