AAFCS Leadership ConferenceOctober 12 2014

Leadership Orientation ndash Legal Issues

Legal Overview ndash AAFCS Tax-Exempt Status

AAFCS is tax-exempt under Section 501(c)(3) of the Internal Revenue Code as a nonprofit association organized and operated exclusively for charitable scientific and educational purposes

Contributions to AAFCS are deductible by donor (in most cases it is a charitable contribution ndash a few cases it will be a business expense deduction)

Contributions to Section 501(c)(6) organizations are not deductible as charitable contributions

2

Legal Overview ndash Group Tax Exemptions

IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization

This avoids the need for each of the organizations to apply for exemption individually

A group exemption has the same effect as an individual exemption except that it applies to more than one organization

3

Legal Overview ndash Group Tax Exemptions

Group exemptions are an administrative convenience for both the IRS and organizations with many affiliated organizations

Subordinates in a group exemption do not have to file tax exemption application and the IRS does not have to process separate applications for exemption

Consequently subordinates do not receive individual exemption letters from the IRS but uses the central organizationrsquos group tax exemption number

4

Legal Overview ndash Group Tax Exemptions

Groups of organizations with group exemption letters have a ldquoheadrdquo or main organization referred to as a central organization

The central organization generally supervises or controls many chapters called subordinate organizations

To qualify for a group exemption the central organization and its subordinates must have a defined relationship

Subordinates must be (1) affiliated with the central organization (2) subject to the central organizationrsquos general supervision or control and (3) exempt under the same paragraph of IRC 501(c) as the central organization

5

Legal Overview ndash Group Tax Exemptions

AAFCS filed for a group exemption with the IRS in 1986

The initial group exemption covered AAFCS and 60 state and local affiliates

In the late 1980s the covered affiliates rose to around 100 Currently the group exemption covers 42 affiliates

Covered affiliates do not have a separate exemption number but use the group number ndash 3224

6

Legal Overview ndash Group Tax Exemptions

In order to maintain a group exemption letter the central organization is required to submit the following information to the IRS at least 90 days before the close of its annual accounting period

1048708 any changes in the purposes character or method of operation of the subordinate organizations

1048708 a separate list of the names addresses and employee identification numbers of the subordinate organizations

(i) that have changed their names or addresses during the year (ii) that for any reason are no longer to be covered by the group exemption letter and (iii) that for any reason are to be added to the group exemption

7

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash AAFCS Tax-Exempt Status

AAFCS is tax-exempt under Section 501(c)(3) of the Internal Revenue Code as a nonprofit association organized and operated exclusively for charitable scientific and educational purposes

Contributions to AAFCS are deductible by donor (in most cases it is a charitable contribution ndash a few cases it will be a business expense deduction)

Contributions to Section 501(c)(6) organizations are not deductible as charitable contributions

2

Legal Overview ndash Group Tax Exemptions

IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization

This avoids the need for each of the organizations to apply for exemption individually

A group exemption has the same effect as an individual exemption except that it applies to more than one organization

3

Legal Overview ndash Group Tax Exemptions

Group exemptions are an administrative convenience for both the IRS and organizations with many affiliated organizations

Subordinates in a group exemption do not have to file tax exemption application and the IRS does not have to process separate applications for exemption

Consequently subordinates do not receive individual exemption letters from the IRS but uses the central organizationrsquos group tax exemption number

4

Legal Overview ndash Group Tax Exemptions

Groups of organizations with group exemption letters have a ldquoheadrdquo or main organization referred to as a central organization

The central organization generally supervises or controls many chapters called subordinate organizations

To qualify for a group exemption the central organization and its subordinates must have a defined relationship

Subordinates must be (1) affiliated with the central organization (2) subject to the central organizationrsquos general supervision or control and (3) exempt under the same paragraph of IRC 501(c) as the central organization

5

Legal Overview ndash Group Tax Exemptions

AAFCS filed for a group exemption with the IRS in 1986

The initial group exemption covered AAFCS and 60 state and local affiliates

In the late 1980s the covered affiliates rose to around 100 Currently the group exemption covers 42 affiliates

Covered affiliates do not have a separate exemption number but use the group number ndash 3224

6

Legal Overview ndash Group Tax Exemptions

In order to maintain a group exemption letter the central organization is required to submit the following information to the IRS at least 90 days before the close of its annual accounting period

1048708 any changes in the purposes character or method of operation of the subordinate organizations

1048708 a separate list of the names addresses and employee identification numbers of the subordinate organizations

(i) that have changed their names or addresses during the year (ii) that for any reason are no longer to be covered by the group exemption letter and (iii) that for any reason are to be added to the group exemption

7

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Group Tax Exemptions

IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization

This avoids the need for each of the organizations to apply for exemption individually

A group exemption has the same effect as an individual exemption except that it applies to more than one organization

3

Legal Overview ndash Group Tax Exemptions

Group exemptions are an administrative convenience for both the IRS and organizations with many affiliated organizations

Subordinates in a group exemption do not have to file tax exemption application and the IRS does not have to process separate applications for exemption

Consequently subordinates do not receive individual exemption letters from the IRS but uses the central organizationrsquos group tax exemption number

4

Legal Overview ndash Group Tax Exemptions

Groups of organizations with group exemption letters have a ldquoheadrdquo or main organization referred to as a central organization

The central organization generally supervises or controls many chapters called subordinate organizations

To qualify for a group exemption the central organization and its subordinates must have a defined relationship

Subordinates must be (1) affiliated with the central organization (2) subject to the central organizationrsquos general supervision or control and (3) exempt under the same paragraph of IRC 501(c) as the central organization

5

Legal Overview ndash Group Tax Exemptions

AAFCS filed for a group exemption with the IRS in 1986

The initial group exemption covered AAFCS and 60 state and local affiliates

In the late 1980s the covered affiliates rose to around 100 Currently the group exemption covers 42 affiliates

Covered affiliates do not have a separate exemption number but use the group number ndash 3224

6

Legal Overview ndash Group Tax Exemptions

In order to maintain a group exemption letter the central organization is required to submit the following information to the IRS at least 90 days before the close of its annual accounting period

1048708 any changes in the purposes character or method of operation of the subordinate organizations

1048708 a separate list of the names addresses and employee identification numbers of the subordinate organizations

(i) that have changed their names or addresses during the year (ii) that for any reason are no longer to be covered by the group exemption letter and (iii) that for any reason are to be added to the group exemption

7

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Group Tax Exemptions

Group exemptions are an administrative convenience for both the IRS and organizations with many affiliated organizations

Subordinates in a group exemption do not have to file tax exemption application and the IRS does not have to process separate applications for exemption

Consequently subordinates do not receive individual exemption letters from the IRS but uses the central organizationrsquos group tax exemption number

4

Legal Overview ndash Group Tax Exemptions

Groups of organizations with group exemption letters have a ldquoheadrdquo or main organization referred to as a central organization

The central organization generally supervises or controls many chapters called subordinate organizations

To qualify for a group exemption the central organization and its subordinates must have a defined relationship

Subordinates must be (1) affiliated with the central organization (2) subject to the central organizationrsquos general supervision or control and (3) exempt under the same paragraph of IRC 501(c) as the central organization

5

Legal Overview ndash Group Tax Exemptions

AAFCS filed for a group exemption with the IRS in 1986

The initial group exemption covered AAFCS and 60 state and local affiliates

In the late 1980s the covered affiliates rose to around 100 Currently the group exemption covers 42 affiliates

Covered affiliates do not have a separate exemption number but use the group number ndash 3224

6

Legal Overview ndash Group Tax Exemptions

In order to maintain a group exemption letter the central organization is required to submit the following information to the IRS at least 90 days before the close of its annual accounting period

1048708 any changes in the purposes character or method of operation of the subordinate organizations

1048708 a separate list of the names addresses and employee identification numbers of the subordinate organizations

(i) that have changed their names or addresses during the year (ii) that for any reason are no longer to be covered by the group exemption letter and (iii) that for any reason are to be added to the group exemption

7

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Group Tax Exemptions

Groups of organizations with group exemption letters have a ldquoheadrdquo or main organization referred to as a central organization

The central organization generally supervises or controls many chapters called subordinate organizations

To qualify for a group exemption the central organization and its subordinates must have a defined relationship

Subordinates must be (1) affiliated with the central organization (2) subject to the central organizationrsquos general supervision or control and (3) exempt under the same paragraph of IRC 501(c) as the central organization

5

Legal Overview ndash Group Tax Exemptions

AAFCS filed for a group exemption with the IRS in 1986

The initial group exemption covered AAFCS and 60 state and local affiliates

In the late 1980s the covered affiliates rose to around 100 Currently the group exemption covers 42 affiliates

Covered affiliates do not have a separate exemption number but use the group number ndash 3224

6

Legal Overview ndash Group Tax Exemptions

In order to maintain a group exemption letter the central organization is required to submit the following information to the IRS at least 90 days before the close of its annual accounting period

1048708 any changes in the purposes character or method of operation of the subordinate organizations

1048708 a separate list of the names addresses and employee identification numbers of the subordinate organizations

(i) that have changed their names or addresses during the year (ii) that for any reason are no longer to be covered by the group exemption letter and (iii) that for any reason are to be added to the group exemption

7

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Group Tax Exemptions

AAFCS filed for a group exemption with the IRS in 1986

The initial group exemption covered AAFCS and 60 state and local affiliates

In the late 1980s the covered affiliates rose to around 100 Currently the group exemption covers 42 affiliates

Covered affiliates do not have a separate exemption number but use the group number ndash 3224

6

Legal Overview ndash Group Tax Exemptions

In order to maintain a group exemption letter the central organization is required to submit the following information to the IRS at least 90 days before the close of its annual accounting period

1048708 any changes in the purposes character or method of operation of the subordinate organizations

1048708 a separate list of the names addresses and employee identification numbers of the subordinate organizations

(i) that have changed their names or addresses during the year (ii) that for any reason are no longer to be covered by the group exemption letter and (iii) that for any reason are to be added to the group exemption

7

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Group Tax Exemptions

In order to maintain a group exemption letter the central organization is required to submit the following information to the IRS at least 90 days before the close of its annual accounting period

1048708 any changes in the purposes character or method of operation of the subordinate organizations

1048708 a separate list of the names addresses and employee identification numbers of the subordinate organizations

(i) that have changed their names or addresses during the year (ii) that for any reason are no longer to be covered by the group exemption letter and (iii) that for any reason are to be added to the group exemption

7

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Group Tax Exemptions

For those subordinates being added to the group exemption the following needs to be submitted

1048708 a detailed description of the subordinatersquos principal purposes and activities

1048708 a copy of a uniform governing instrument adopted by the subordinate organization (such as model bylaws)

1048708 an affirmation that the subordinate organization is operating in accordance with the stated purposes

1048708 a written authorization statement to the central organization that the subordinate organization wants to be

included in the group exemption

8

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Annual Tax Filings

The group exemption process does not mandate that subordinate organizations and their central organization file the Form 990 annual information return together

In fact the majority of national professional and trade associations that use group exemptions require their affiliates to file their own Form 990 returns

The central organization and the subordinates must file Form 990 990-EZ or 990-N (e-Postcard) unless they meet a filing exception

9

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Annual Tax Filings

AAFCS currently files a Form 990 annually but does not file a group return on behalf of AAFCS affiliates

Each AAFCS affiliate must file its own annual return using Form 990 990-EZ or 990-N (e-Postcard) as appropriate

If an AAFCS affiliate fails to file an annual return for three consecutive years it will lose its tax-exempt status

10

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Annual Tax Filings

Under the Pension Protection Act of 2006 most small tax-exempt organizations whose gross receipts are normally $50000 or less must file Form 990-N (e-Postcard)

Before this law was enacted small organizations were not required to file annually with the IRS

The first filings were due in 2008 for tax years ending on or after December 31 2007

Many small organizations lost their tax exemption because of the failure to file the required form with the IRS

If an organizationrsquos gross receipts are greater than $50000 the organization must file Form 990 or Form 990-EZ)

11

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Annual Tax Filings

The e-Postcard is due every year by the 15th day of the 5th month after the close of the organizationrsquos tax year For example if the organizationrsquos tax year ended on December 31 the e-Postcard is due May 15 of the following year

Completing the Form 990-N (e-Postcard) requires the seven items listed below and is done electronically

(1) Employer identification number (EIN) also known as a Taxpayer Identification Number (TIN)

(2) Tax year

(3) Legal name and mailing address

(4) Any other names the organization uses

(5) Name and address of a principal officer

(6) Web site address if the organization has one

(7) Confirmation that the organizationrsquos annual gross receipts are $50000 or less for tax years ending on or after December 31 2010

12

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Government Filings

IRS

1048708 IRS Form 990 Form 990-EZ or Form 990-N ndash annually State

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity The filing is typically an annual filing but can be semi-annual The filing typically requires that your affiliate provide the names of the current officers and directors and a statement of current activities If your affiliate has not been filing periodic reports your affiliatersquos corporate status has likely been revoked

1048708 Corporate ndash File a periodic report with the state secretary of state attorney general department of corporations or like governmental entity in order to be qualified to do business in the state

13

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Government Filings

State

1048708 Tax ndash Some states will recognize an organizationrsquos federal tax status and automatically grant

state income tax exemption Some states require tax-exempt organizations to apply for tax- exempt status in the state

1048708 Tax ndash Some states require tax-exempt organizations to provide a copy of the filed IRS Form 990 annually to the state department of revenue assessments or like governmental entity Other states have their own tax form that must be filed annually

14

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Government Filings

State

1048708 Charitable Solicitation - If your affiliate is actively fundraising beyond just the

membership base you may be required to register with the state to conduct charitable solicitations This registration requirement is

typically separate and apart from the corporate registration and filing requirements This registrationfiling is typically with the state

attorney general15

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview ndash Government Filings

State1048708 Raffle - If your affiliate engages in raffles or like events you may be required to register with the state to conduct such activities This registration requirement is typically separate and apart from the above referenced corporate registration and filing requirements This registrationfiling is typically with the state attorney general

16

Legal Overview - Questions

17

Legal Overview - Questions

17