Marion County

student gardner workforce

Bringing job training to Indiana producers
Read More ››

Tax Exempt Status

October 9, 2017

Recently there have been some questions about Tax Exempt Status for 4-H Clubs with regard to State Sales Tax. Below is the official policy Purdue 4-H

 

 

From Purdue 4-H Policy and Procedures Manual:

 

Tax exempt status of 4-H Units/Clubs 1. In August 2013, Purdue University was granted a Group Exemption Number (GEN), 5924, by the IRS which provides federal tax exemption status to the 4-H Clubs and 4-H Affiliates in Indiana which have agreed to be under Purdue University’s general supervision and control. 2. The IRS ruled on February 9, 1973, that 4-H Units/Clubs which are operating under the guidance and control of the Cooperative Extension Service, and which are authorized to use the 4-H name and emblem, are exempt from paying federal taxes on income received. The PU GEN does not provide 4-H units/clubs with state sales tax exempt status. Thus, these groups do need to pay state sales tax on items purchased. In general, Units/Clubs should not use the County 4-H organization’s state sales tax exemption number. 3. Documentation of tax exempt status: a. At times 4-H organizations are asked to provide a copy of an IRS determination letter indicating federal tax-exempt status (e.g., grant applications). Federal tax determination letters for each 4-H Club and 4-H Affiliate which is a part of the Purdue Group Exemption Number may be requested by the 4-H Extension Educator. The Educator can send an e-mail to Steve McKinley (mckinles@purdue.edu) to make this request. Include the name of the 4-H group, its EIN, and its mailing address in the message. These letters are not to be modified or altered in any way. b. NOTE: requests should NOT BE MADE for those county entities (some Fair Boards and 4-H Councils) that have filed for and maintain their own separate 501(c)(3) not for profit status.

 

Receipts for donations The individual, business, or group that donates to the 4-H organization may be eligible to deduct the contributions (bequests, legacies, devises, transfers, gifts) to these 4-H organizations on the donors’ federal tax returns according to the IRS code, pending the advice of the donors’ tax preparers (and assuming the 4-H unit has maintained its federal tax exempt status). Dated receipts should be provided to donors.

Recent Stories