Did Ed Rendell “Mess Up” Taxes for DNC Donors?

New York Post says Rendell is "scrambling to fix the situation." Philly DNC officials dispute that.

The New York Post is reporting that Ed Rendell started collecting donations before the city’s Democratic National Convention Host Committee received its official 501(c)(3) nonprofit tax status — an alleged “mistake” that is causing those donors trouble at tax time.

A spokesperson for the committee acknowledged to Philly Mag today that 501(c)(3) status has not yet been finalized, but otherwise disputed the Post report, saying that the tax status should be settled “well in advance of the convention.”

“The delay in receiving the (c)(3) status has not interrupted the flow in donations,” Anna Adams-Sarthou said. “We continue to feel good about where we are on that front.”

According to the Post, the delay in finalizing the status was the fault of Rendell. The result? Donors are having to file extensions on their 2015 taxes, due next month, in order to have a chance of claiming the donation as a deduction. “Rendell’s scrambling to fix the situation,” a source told the paper. “He’s been calling donors telling them, ‘I messed up, but don’t worry. I’ll get it straightened out.’ ”

Adams-Sarthou told the Post the committee filed for the status in May 2015. “No mistakes were made when we filed for (c)(3) status,” she told Philly Mag by email. “We filed paperwork for the status in a timely manner, and received feedback from the IRS, which we are addressing.”

She added: “Most of our donors have no concerns whatsoever about our (c)(3) status. We fully expect to receive this status well in advance of the convention.”

The convention is scheduled for the week of July 25th. Rendell has been leading efforts to raise as much as $60 million to host the event.

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