Marion County

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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.

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