GCFM 501C3 Umbrella Status Application

What does it mean to your individual club?

·         You will be a legal organization and classified as a not-for-profit charitable organization with the Federal Government. 

·         You will not have to file tax returns unless your club’s gross income is over $25,000. The Federation includes you as one of their umbrella clubs.

·         As a 501C3 you can accept donations from corporations and other individuals.  They can in turn deduct these gifts from their income tax.

·         If you were to process the 501C3 status with the IRS, your cost for filing alone would be $150.00.  The paper work they require is extensive.

·         This does not give you State tax exempt status and allow you to avoid paying sales tax.

·          You still need to register with the Commonwealth of Massachusetts separately for tax exempt status.

How does a club become a 501C3 and come under the Federation umbrella?

1. Your club must have its own EIN # (Employee Identification Number).  You must have this even though you may have no employees. This number is required to obtain a checking or a savings account. To acquire an EIN # you must file an SS-4 form.  You may get this form online at irs.gov.  When completed, the form can be faxed to 631-447-8960 or call 1-800-829-1040 follow the menu for business employee identification numbers, and you can get it over the phone.  I suggest you have a filled in form in front of you when filing over the phone.
2. You may or may not be incorporated but cannot be a private foundation.
3. You must be federated club affiliated with the Garden Club Federation of Massachusetts, Inc.
4. Your club’s fiscal year must be the same as the Federation’s (July 1 to June 30).
5. By October 1 of the current calendar year, you must submit the following completed information to the Federation.
1.  A letter of request to be included in the 501C3 Umbrella with the Federation.
2.  A one-time filing fee of $25 to cover expenses made out to GCFMA.
3. The contact name and contact information including email address if available of some one who can answer questions about the club’s finances.
4. A central mailing address for the club.  We suggest a post office box so the address will remain the same each year, but the post office box is not mandatory.
5. A one page description/list of club activities.
6. A copy of your club’s bylaws with the following two IRS clauses included, word for word. These must already appear in the bylaws when applying.

Dissolution Clause:  In the event of dissolution, all of the remaining assets and property of the organization shall, after payment of necessary expenses, be distributed to such organization as shall qualify under Section 501 C (3) of the internal Revenue Code of 1986, or corresponding provisions of any subsequent Federal Tax Law or to the Federal Government, a State or Local government for public purpose, subject to the approval of a court of competent jurisdiction within the Commonwealth of Massachusetts.

Nondiscrimination Clause:  The (Name) Garden Club shall not permit in their conduct of club affairs, any restriction or limitation whatsoever based upon race, color, creed, gender, and national origin or employment status.

7. Financial information on your club:

1)      An income and expense or profit and loss statement for the previous year.

2)     A copy of a budget for the coming year.

3)     If a new club to the Federation, only current finances and proposed budget.

8. To maintain umbrella status, a club is subject to general supervision by submitting an annual financial report with any address or contact changes by October 1 of each year.

Mail all COMPLETE packages and Financial Reports to:

GCFM Office: 219 Washington Street, Wellesley Hills 02481

For Further questions:  Call Heidi Kost-Gross (781) 237-2618 or email Heidi144@comcast.net

501C3 APPLICATION CHECK LIST

DEADLINE OCTOBER 1

PACKAGE COMPLETED AND MAIL TO:

The Garden Club Federation of Massachusetts, Inc

219 Washington Street

Wellesley Hills, MA 02481