1 / 32

OHIO 4-H TAX EXEMPTION STATUS 4-H PROFESSIONALS INSERVCE NOVEMBER 2, 2011 Lisa Jinks

OHIO 4-H TAX EXEMPTION STATUS 4-H PROFESSIONALS INSERVCE NOVEMBER 2, 2011 Lisa Jinks. A special thank you to ALL of the county staff who have worked diligently with their 4-H Club advisors to comply with the GEN & IRS guidelines. You have made this difficult state wide task much easier !.

cecily
Download Presentation

OHIO 4-H TAX EXEMPTION STATUS 4-H PROFESSIONALS INSERVCE NOVEMBER 2, 2011 Lisa Jinks

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. OHIO 4-H TAX EXEMPTION STATUS 4-H PROFESSIONALS INSERVCE NOVEMBER 2, 2011 Lisa Jinks

  2. A special thank you to ALL of the county staff who have worked diligently with their 4-H Club advisors to comply with the GEN & IRS guidelines. You have made this difficult state wide task much easier!

  3. Under the Internal Revenue Code and related regulations, nonprofit organizations must obtain and maintain tax-exempt status. • Previously the 4-H group exemption was administered by the National Institute of Food and Agriculture (“NIFA”), U.S. Department of Agriculture.

  4. The Ohio State University has begun the process to file an application for group exemption with the Internal Revenue Service (“IRS”) for all 4-H groups affiliated with and under the general supervision or control of the University. This is being prepared by OSU Office of Legal Affairs.

  5. Documents 4-H Club/Affiliate will need: • Employee Identification Number (EIN) (TIN) • This is not optional for 4-H Clubs/Affiliates • EIN is needed regardless of fundraising/treasury activities • EIN is assigned to the 4-H Club, not to any individual

  6. Clubs/Affiliates must maintain their tax-exempt Status • Maintain their EIN and records in club files • File necessary 990 with the IRS

  7. IRS Application for Employer Identification Number - SS-4 form • Form can be found at: http://www.irs.gov/pub/irs-pdf/fss4.pdf • Sample for completing the SS-4 found at: http://www.national4-hheadquarters.gov/library/SAMPLE_SS-4v9-12-07.pdf

  8. Updates to the 4-H SS-4 Sample (10/26/11) • Apply using a unique name for your club/affiliate by adding the county name. (example: Clever Clovers 4-H Club of Adams County) • Club names should be approved by local county 4-H Professional

  9. Updates to the 4-H SS-4 Sample (10/26/11) • Under Item 9a, check “Other” and write “The Ohio State University”. • Under Item 9a, under “Group Exemption Number (GEN) if any”, LEAVE BLANK. (Do not use “2704” as the GEN number it has been discontinued. The Ohio State University GEN number has not yet been released.)

  10. Updates to the 4-H SS-4 Sample (10/26/11) • Item 18 should be checked “No”. • Follow the SS-4 Form example on the remaining Items. • The most effective way to send the SS-4 to the IRS is to FAX the form to the following number: 1-859-669-5760.

  11. Documents 4-H Club/Affiliate will need: • Tax Exemption Authorization form • This is a requirement of the IRS for inclusion in the Ohio GEN. • A signed from must be obtained from every 4-H Club/Affiliate • This document only needs to be signed one time

  12. Tax Exemption Authorization Form • Must have 100% accurate information • Forms will be returned to the County for club files • Newly organized clubs/affiliates must sign a Tax Exemption Authorization form

  13. Organizing Documents • IRS requires that the organizing documents of every club/affiliate must contain certain language. Such as: • Involvement in political campaign or political issues • Distribution of funds upon dissolution • This includes; Constitution and Charter or Memorandum of Understanding (MOU)

  14. Organizing Documents • Club/Affiliate Constitution • Updates to this language are being made • Updated constitutions will need to be signed for every 4-H Club/Affiliate • Copy of the Club/Affiliate Constitution should be on file at the local county office

  15. Organizing Documents • Club Charter • Updates to this language are being made • Updated charter will be need to be signed by every Club • Copy of the Club’s charter should be on file at the local county office • Charter Checklist should be signed every year and on file in county office

  16. -OR- • Affiliate Memorandum of Understanding • MOU with OSU, signed by both the Affiliate and OSU • Filed in the local county • MOU samples are being reviewed by OSU Legal Affairs

  17. Organizing Documents • Annual Financial Summary http://www.ohio4h.org/members/officers/documents/YearlySummary.pdf • Completed by every 4-H Club/Affiliate • Collected at end of every year • Filed in the local county office

  18. TAX EXEMPTION AUGHORIZATION FORMS • May 2011 - Began requesting and collecting Tax Exemption Authorization forms from all 4-H Clubs/Affiliates, over 4,000 groups with approximately 50% compliance. • October 2011 – County spreadsheets returned to county personnel request follow up with 4-H Clubs/Affiliates that had not returned Tax Exemption Authorization forms. • November 1, 2011 – Complete list and forms to State 4-H Office.

  19. Cloverbud Members • Attorneys with OSU have determined that to be eligible for the OHIO 4-H GEN, 4-H Clubs must have officers and members that can make major decisions about their 4-H club activities.  Since this activity is not age appropriate for Cloverbud Members, stand alone Cloverbud clubs cannot exist as a chartered 4-H Club. • Should not have their own EIN

  20. Cloverbud Members can: • Be enrolled as Cloverbud Members in a current “project” 4-H club • Be enrolled and participate in a countywide 4-H Cloverbud program and activities • Be enrolled in a countywide 4-H Cloverbud program where a Cloverbud committee is established or where a subcommittee of the 4-H committee  makes the major and financial decisions.

  21. 4-H Affiliates may be included in the GEN (such as 4-H committees).  • They must be organized exclusively for the educational purposes of 4-H.  • They must be structured with officers • Have a constitution • And eventually sign an MOU with OSU Extension/4-H.

  22. If a committee is in place for another purpose, such as Junior Fair Livestock Sale, Junior Fair Royalty Committees, it should NOT be included in the OHIO 4-H GEN. Rather its tax exemption status should come from a local county entity such as the Agricultural Society. • If you do not included all 4-H committees on your county list they will not have tax exempt status from the OHIO 4-H GEN

  23. Any group that is not compliant with the guidelines set forth will not have authorization to use the 4-H name and emblem and therefore cannot be considered a 4-H Club or a 4-H Affiliate.

  24. So What Do I Do Now? • Communicate with clubs, they must comply or a club will need to disband. • Do not discourage 4-H members from belonging to our organization • We will assist members with finding a new club

  25. So What Do I Do Now? 2. Continue to refine your county list 3. Keep your county list up to date • Add new clubs • Have new clubs sign Tax Exemption Authorization • Delete disbanded clubs 4. Look for further information about Club Constitutions, Chartering & MOUs

  26. So What Do I Do Now Changing contact information for an existing EIN • IRS no longer has a form available to update the EIN contact information, and the IRS asks entities updating their information NOT to submit a second EIN application. Instead, the IRS asks that the entity send a letter, on company letterhead, if available, providing the name and Taxpayer Identification Number of the current contact person. Be sure to include the entity’s complete name, EIN, and mailing address so they can correctly identify your IRS account. The entity should send the letter to the following IRS campus:  Send Letter or Fax to:         • Internal Revenue ServiceStop 343GCincinnati, OH 45999Fax Number:  859-669-5748                                                                                                             • Confirmation - The IRS will send a letter confirming our receipt of the updated information.  If the entity has not received the confirmation letter within 60 days, it should fax a copy of the original letter, annotated “Second Request”, to the campus that services the entity’s state. • Updated-2/2010

  27.  So What Do I Do Now? Cancelling an EIN – Closing Your Account • Reference: • http://www.irs.gov/businesses/small/article/0,,id=177073,00.html

  28.  Review 4-H Club will need the following to be compliant: 4-H Club Charter/an annual 4-H Club Charter Checklist – on file in county office 4-H Club Constitution/Bylaws - on file in county office Must be organized with officers and ability for members to vote on important decisions including financial decisions. EIN in the name of the 4-H Club Tax Exemption Authorization Form signed - on file in county office Annual Financial Summary – on file in county office

  29.  Review 4-H Affiliate will need the following to be compliant: MOU with OSU/4-H – on file in the county office Committee Constitution/Bylaws - on file in county office Must be organized with officers and ability for members to vote on important decisions including financial decisions. EIN in the name of the 4-H Affiliate Tax Exemption Authorization Form signed - on file in county office Annual Financial Summary – on file in county office

More Related