Club Tax and Legal Information
October 14, 2016
Each year, every club must report on its gross revenues raised by filing a Form 990 with the IRS. If the form is not filed, the club will lose its 501(c)(3) status as a charity and will no longer be able to legally raise revenue. One of three variations on the form must be used, depending on how much money the club raised during the year. Those forms are as follows:
- Form 990, for clubs with gross revenues raised in excess of $200,000
- Form 990-EZ, for clubs with gross revenues raised between $50,000 and $200,000
- Form 990-N, for clubs with gross revenues raised under $50,000
Your club’s respective form must be filed by November 15, which is the 15th of the month of the 5th month past the end of our fiscal year. If your club has an extenuating circumstance, you can request an extension from the IRS by filing Form 8868. You cannot extend the form 990-N, which is online filing only. (There is no penalty for late filing of the 990-N. The IRS will send a reminder to file.)
The information and forms are available on the IRS website at irs.gov. The IRS has created a training site for nonprofits to teach volunteers about basic tax compliance. Visit that site at stayexempt.irs.gov. The Sertoma site has information on how to fill out the 990-N. View those instructions at sertoma.org, then go to Membership | Resources | IRS Information.
We ask that every club do its due diligence with regard to completing this important form. We don’t want anyone losing their tax exempt status because of an oversight that could easily be prevented.
If you or your club still has questions in regards to the IRS, taxes, fundraising or general insurance inquiries, please be sure to check out the”Club Tax and Legal” training library for more information.