Rotary and Form 990N

1. Rotary and Form 990N Return of Organization Exempt from Income Tax

2. Before Filing Each Club must have its own EIN

3. Who Must File? Although a ‘Subordinate Organization’ of Rotary International Each Club must file its own return

4. Which Form? Form 990? Form 990EZ? Form 990N?

5. Form 990 • Normal Annual Gross Receipts ≥ $200,000 Or • Total Assets ≥ $500,000

6. Form 990EZ $50,000 < Normal Annual Gross Receipts > $200,000

7. Form 990N Normal Annual Gross Receipts ≤ $50,000

8. A Definition Gross Receipts – amounts pledged or given to the club during the accounting year

9. Another Definition Normal Annual Gross Receipts ≤ $50,000 3 conditions • In existence for ≤ 1 year & gross receipts ≤ $75,000 • In existence 1 to 3 years & average gross receipts ≤ $60,000 • In existence for at least 3 years and average gross receipts ≤ $50,000 for immediately preceding 3 years

10. Examples

11. Rotary Club of Big Small Town • Organized September 5, 2012 • Received • Cash $70,000 • Other Property 1,000 $71,000

12. Rotary Club of Big Small Town • In existence less than 1 year • Normal Annual Gross Receipts ≤ $75,000 • Files 990N

13. Paradise Evening Rotary Club • Organized June 11, 2011 • Gross Receipts • 2011 $73,000 • 2012 20,000 • 2013 (so far) 35,000

14. Paradise Evening Rotary Club • In existence more than 1 year & less than 3 • Average gross receipts = $46,500 for the first 2 years • Normal Annual Gross Receipts < $60,000 • Files 990N

15. Big Old City Noon Rotary Club Situation 1 • Organized in the last century • Gross receipts • 2010 $ 4,000 • 2011 45,000 • 2012 200,000

16. Big Old City Noon Rotary Club – Situation 1 • In existence more than 3 years • Average gross receipts = $49,667 for the last 3 years • Normal Average Gross Receipts < $50,000 • Files 990N

17. Big Old City Noon Rotary Club – Situation 2 • Organized in the last century • Gross Receipts • 2011 $ 45,000 • 2012 100,000 • 2013 75,000

18. Big Old City Noon Rotary Club – Situation 2 • In existence more than 3 years • Average Gross Receipts for last 3 years = $73,333 • Normal Annual Gross Receipts > $50,000 but > $200,000 • Files 990EZ

19. How to File • Only electronically • Go either to www.irs.gov or http://epostcard.form990.org

20. Information Necessary to File • Organization’s name – Rotary International • Other name used – ex. d/b/a Kearney Dawn Rotary Club • Club’s mailing address • Club’s website • Club’s EIN • Club’s principal office – the president • Organization’s tax year – calendar year • Club’s annual gross receipts • Is the club still a going concern?

21. When is the 990N considered filed • Must be filed electronically • Paper return not accepted as a filed 990N • From 990N must be complete • An incomplete Form 990 is not accepted as a filed 990

22. When is Form 990N complete? • All applicable lines are complete • Each question is answered unless the instructions direct not to answer • Entries are made on all lines requiring an amount even if that amount is 0 • Explanations are provided as instructed

23. Filing Late • IRS will send notifications if return is not filed on time • There is no penalty for filing a late 990N

24. Failure to File for 3 Years If a club fails to file Form 990N for 3 consecutive years it will LOSE its TAX EXEMPT STATUS as of the filing date of the third year

25. Reinstatement of Tax Exempt Status • Form 1024, Application for Recognition of Exemption Under Section 501(a) must be filed • Form 8718, User Fee for Exempt Organization Determination Letter Request, must be filed • Form 8718 fee must be paid at the time of filing • Currently the fee is $850