[District Board] FW: Important information regarding EIN numbers for KCI & CKI Clubs

[Jeffrey M. Wolff]

PLEASE READ THIS OVER IMMEDIATELY AND EXPLAIN TO YOUR CLUBS!  If you don't
understand, please ask me. 

 

From: Bill Parker [mailto:bparker at KIWANIS.ORG] 
Sent: Friday, September 12, 2008 12:01 PM
To: undisclosed-recipients:
Subject: FW: Important information regarding EIN numbers for KCI & CKI Clubs
Importance: High

 

Dear 2007-08  and 2008-09 CKI and Key Club District Administrators (US
Districts only),

NOTE #1:  This message should not have been sent to any district
administrator outside the US.  If it was, it was done in error.  Please
accept our apologies and delete this email.  We know you should not have
received it.

NOTE #2:  Some of you may have received this email twice as you are a
District Administrator for 2007-08 and 2008-09.  Just delete one of them.  

This past year the IRS changed their reporting requirements related to EIN
numbers and 990 filings and since our original communication on the matter
an issue has come up regarding EIN procurement for some of our Key Clubs and
CKI clubs. We previously communicated that all Kiwanis, CKI & Key Clubs had
to get an EIN and file a 990, this was incorrect with respect to the youth
clubs.

If the Key Club or CKI club has its deposits and disbursements (its
financial records) controlled by the school in school accounts, such as
extracurricular accounts, then the club does not have to apply for an EIN,
does not have to report the EIN to Kiwanis and be a part of the group
exemption filing, and does not have to file any of the related IRS tax
returns - in particular, the new Form 990-N which must be filed by
tax-exempt organizations with gross receipts of $25,000 or less.  

We are aware that many of the KCI and CKI already have EIN's and have
reported them to us - and their books are controlled by the school.  If you
know of clubs like this, the club should continue to file with the IRS as
they normally would.  During the next year we will contact the club and the
IRS to get the club removed from the group exemption filing with the IRS.


Attached you will find a cover memo, and separate FAQs for Kiwanis and SLP
clubs.  We will be sending this same communication to all CKI and Key Club
administrators later today.

There's one other thing that has not changed since our original
communication that I want to stress again.  All Kiwanis clubs must file a
990 in one form or another (depending on total receipts).  Clubs with total
receipts under $25,000 have not had to do this in the past but must do it
now.  If a club goes three years without filing they will lose their
tax-exempt status, so we need to make sure everyone files.

990s are due four and a half months after the club's year-end so clubs with
9/30 year-ends, which I assume is just about everyone, must file no later
than February 15th.  

Thanks for all you do for Kiwanis.

Cc:  Mike Downs, Erin Fischer, Jeff Oatess, Stan Soderstrom, Joan Wilson,
Finance Department Staff

Bill Parker, Controller
Kiwanis International
3636 Woodview Trace
Indianapolis, IN  46268
1-800-549-2647 (US/Canada)
1-317-217-6146 (direct)

1-317-850-8313 (mobile)

1-317-879-0204 (fax)
bparker at kiwanis.org
www.kiwanis.org 

<<FAQ Memo to Distr Secy 9-12-08.pdf>> <<FAQ Related to IRS Filing SLP Req
to Distr 9-10-08.pdf>> <<FAQ IRS Filing Req to Distr by Category
9-11-08.pdf>> 

 

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