FAQ

My club no longer has ten members, do we fold, and if so how do we do that?

While you have to have ten members to start a club, you only have to have two members to remain a club. As long as there are two members or more in your club that want to stay members they can hold the club charter and funds until membership can be built up again. If there is another federated club in town they could merge. If there is not a federated club in town; no one wishes to hold the charter; a letter has been sent to the State and District stating that 2/3’s of the membership having been given notice, voted to disband and all club funds and property have been distributed to a 501©(3) nonprofit; then a former member may join as a member-at-large. Contact Headquarters for more information on starting a club, disbanding or defederating or Member-at-Large status.

There are lots of project suggestions but my club is small and we don’t raise a lot of money. How can we possibly do it all?

That is part of the beauty of Federation, you are given lots of ideas and resources. Some clubs combine departments while others have such a large membership that some of their bigger projects actually function much as departments. As far as where your club focuses it donations, dues are the only mandatory thing a club is required to pay. There are four funds clubs are encouraged to support to be classified as a State honor club. Other endorsed projects including the President’s Special Project are suggestions because as an organization we can have a greater impact than as a single club as we did by donating over $100,000 to the NC Aquariums in 2002.

If you are a 501 © (3) what are my limitation as far as politics?

During a political campaign what you do can effect your tax status. It is perfectly legitimate and highly appropriate to work for passage of legislation that will further the cause of your organization. Lobbying is educating or influencing the outcome of legislation and is lawful. However, influencing the outcome of an election by working for or in opposition to the election of a political candidate is strictly prohibited. You may engage in this as a private citizen but not as a representative of a nonprofit. Your group can sponsor a political forum, or publish information in a newsletter if all candidates are included.

What an accountant would want you to know.

The group’s books should be audited by a knowledgeable resource and bank statements should be kept for three years. The first thing the IRS will request is complete Board of Directors meeting minutes. You should keep bylaws, charters and all minutes indefinitely.

Can I deduct my charitable contributions on my income tax?

If it was a gift and is not more than 50% of your adjusted gross income, you can deduct the actual contribution value, less the benefit received. Let’s say you are hosting a charity ball and the ticket is $50, your contribution would be minus the actual cost of the meal. Out-of-pocket expenses involved in giving service rendered can be deducted, but can only cover you personally. Canceled checks do not count as receipts and records are always needed. When counting mileage expense the date of service, name of group, and purpose must appear on the receipt and the current deduction for charitable work is at a rate $.14 per mile. Your hourly rate of pay can not be deducted, however. If you are attending a meeting as the CHOSEN REPRESENTATIVE of your organization, you may deduct lodging, meals and travel as long as you stay overnight.

Are donations to my group tax-deductible?

Unless the IRS has your group classified as a nonprofit, contributions to your organization are not legally tax-deductible. Information concerning Charitable Contributions can be found in IRS Publication 526. Note that according to these rules a nonprofit may only hold two raffles a year and 90% of the net proceeds must go for nonprofit purposes. If a contribution of $250 or more is made to a nonprofit, in order for the donor to use it for tax purposes, they must have a written letter of substantiation from the nonprofit and this includes donations from members.

OK, we have determined that we are a 501 © (3). Does that take care of legal liability issues?

Volunteers are protected by federal law, the Volunteer Protection Act of 1997 (S. 543), which preempts any state law unless that law provides additional protection. Essentially this bill provides immunity for volunteers if they were authorized in their action or acting within the scope of their responsibilities, the harm was not due to a willful action or gross negligence and did not happen while operating a motor vehicle. There is a NC general statute 55a-8-60 concerning Immunity that covers a person serving as a director or officer of a recognized nonprofit which is incorporated and provides immunity from civil liability. GFWC-NC is incorporated, but again this does not cover individual clubs. IRS Publication 557 will help each nonprofit to assess its own need for incorporation.

I found a number. What is it?

Every club should have an EIN or Employer Identification Number. This does not indicate that you have employees or that annual taxes need to be filed. You do have to have this number to open a bank account and it is issued from a Form SS-4 or calling 800-TAXFORM or 1-800-829-3676.

Do we have to file an annual tax form?

If annual receipts are less than $25,000, an annual 990 form does not have to be completed, BUT you should state that on the form, sign it and return it to remain on the IRS master list. If they are more than $25,000 but less than $100,000 a Form 990 or 990EZ must be completed.

The IRS DOES NOT issue such a number. You will get a letter which rules on the kind of public charity your group qualifies under. After the application is filed a 1045 Advance Ruling letter will be issued which can be in affect for five years or until a 947 definitive ruling letter is issued.

While GFWC-NC is a 501 C (3) - individual clubs are not covered under that. Should a club decide to pursue a nonprofit tax classification they must file Form 1023 from the IRS.

Why do I receive my NC CLUBWOMAN sometimes several weeks after the club member across town?

After the Editor has completed the publication it is sent to the printers. Approximately two weeks later it is transported to the mailhouse for bulk rate distribution. This process usually takes no more than a week and all magazines are taken at the same time to the US Postal Bulk Mail Center. Unfortunately, once the local post office receives this publication, since it is second class mail, it is delivered as time allows. There is a certain time frame that they are supposed to deliver this in. Some areas of the state seem to take longer than others. Should this be a reoccurring problem please contact your local post office.
The magazine has a return address correction request with the Postal Service. That means if you move and forget to change your address with Headquarters that they will send us your new address or the fact that they have no such person at your old address. They will not forward the magazine to you and they charge us $.70 for each return. If your address changes even by the addition of North and South, please refer that change to Headquarters or complete the online address correction form.