No, your beginning balance is an asset. The IRS expects you to have existing assets, so it's OK to list it as such.
- Craig
Links in this post:
Just to clarify a bit, we talked to the IRS about this. While they consider your incorporation date your legal start date, they know that its common for groups to have been operating before that date. Cash on hand would be listed as an asset on your financials, not as a gift. Listing it as an asset won't raise any questions on your form 1023.
- Craig
Links in this post: