[Alberta's Child]

Contributions to the non-profit corporation aren't tax deductible because the corporation filed under 501(c)(4) as a civic/social organization, not under 501(c)(3) as a charity.

The fact that the "contributors" (actually homeowners paying their HOA assessments) couldn't deduct their contributions is what should have been the warning flag in the first place. There's a reason why these assessments are not tax-deductible for homeowners in HOAs. If I own a detached home and I pay several thousand dollars to resurface my driveway, that repair is not tax deductible for me. Similarly, if I'm a homeowner in an HOA and I pay a tiny fraction of the cost of resurfacing a parking lot that is a common area of the HOA, then that "contribution" is not tax deductible, either.

As confusing as it may seem, the U.S. tax code is actually very consistent (from an accounting standpoint) when it comes to these things.

[Carry_Okie]

Similarly, if I'm a homeowner in an HOA and I pay a tiny fraction of the cost of resurfacing a parking lot that is a common area of the HOA, then that "contribution" is not tax deductible, either.

OTOH, if you are in a city and pay taxes or fees against a general obligation bond, they are tax deductible.

As confusing as it may seem, the U.S. tax code is actually very consistent (from an accounting standpoint) when it comes to these things.

I don't see that as consistent.