The IRS has recently provided guidance on the highly-speculated question of whether a donor may take a deduction for charitable contributions to a single member limited liability company (SMLLC) where the single member is a 501(c)(3) tax-exempt organization.

In Notice 2012-52, the IRS confirmed that it will treat "a contribution to a disregarded SMLLC that…is wholly owned and controlled by a U.S. charity, as a charitable contribution to a branch or division of the U.S. charity." For purposes of the substantiation and disclosure rules, the contribution is treated as if were made to the single member charity. This guidance is effective for charitable contributions made on or after July 31, 2012.

To avoid unnecessary inquiries by the IRS, the charity is encouraged to disclose, in the acknowledgment or another statement, that the SMLLC is wholly owned by the U.S. charity and treated by the U.S. charity as a disregarded entity.

The complete text of Notice 2012-52 can be found here.