Club Resources

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What is an Employer Identification Number (EIN)?
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity.
Why does our club need an EIN?
A Club must obtain an EIN to open a bank account and to apply for federal tax-exempt status. Note: If a Club has a bank account but not an EIN, the bank account may have been opened with the Treasurer’s Social Security number. This should be changed as soon as possible as it may affect the Treasurer’s personal tax status.
How do I apply for an EIN?

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a permanent 9-digit number (like a Social Security number) used to identify a business entity. It is needed to apply for a bank account as well as for federal tax-exempt status.

How to Apply for an EIN - http://www.irs.gov/businesses/small/article/0,,id=97860,00.html

Apply Online
The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately. The online application process is available for all entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S. Territories. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to use the online application.

Apply By EIN Toll-Free Telephone Service
Taxpayers can obtain an EIN immediately by calling the Business & Specialty Tax Line at (800) 829-4933. The hours of operation are 7:00 a.m. - 7:00 p.m. local time, Monday through Friday. An assistor takes the information, assigns the EIN, and provides the number to an authorized individual over the telephone. Note: International applicants must call (267) 941-1099 (Not a toll-free number)

Apply By FAX
Taxpayers can FAX the completed Form SS-4 (PDF) application to their state FAX number (see Where to File - Business Forms and Filing Addresses), after ensuring that the Form SS-4 contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type. If the taxpayer's fax number is provided, a fax will be sent back with the EIN within four (4) business days.

Apply By Mail
The processing timeframe for an EIN application received by mail is four weeks. Ensure that the Form SS-4 (PDF) contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type and mailed to the taxpayer. Find out where to mail Form SS-4 on the "Where to File Your Taxes" (for Form SS-4) page.

What does it mean to be a non-profit? What is the benefit for our club?
In the U.S., non-profit organizations are formed by incorporating in the state in which they do business. U.S. Clubs with non-profit status are eligible for sales, property, and income tax exemptions in the state in which they are incorporated. Fletcher Clubs, based in the U.S., are encouraged to become legal entities by incorporating in their home state.
Are non-profit status and tax-exempt status the same?

Nonprofit status is a state law concept.  Nonprofit status may make an organization eligible for certain benefits, such as state sales, property and income tax exemptions.  Although most federal tax-exempt organizations are nonprofit organizations, organizing as a nonprofit organization at the state level does not automatically grant the organization exemption from federal income tax.  To qualify as exempt from federal income tax, an organization must meet requirements set forth in the Internal Revenue Code. See Types of Tax-Exempt Organizations or Publication 557 for more information.  A benefit of securing federal 501(c)(3) tax-exempt status is that your club has the ability to solicit tax-deductible gifts from members.

Non-profit organizations are formed in the U.S. by incorporating in the state in which they do business. You incorporate a non-profit by filing articles of incorporation (or other charter documents) with the appropriate local state office. Organizations with non-profit status are eligible for sales, property, and income tax exemptions in the state in which they are incorporated. If you want your non-profit to be exempt from federal taxes, you should file with the IRS to be a tax-exempt organization. The most well known type of non-profit is a the IRS classification of 501(c)(3), a “charitable non-profit.”

Non-profit organizations need not be tax-exempt organizations. The pursuit of tax exemption is a voluntary choice and non-profit organizations are free to be taxable if they so choose. However, most non-profit organizations not only incorporate as non-profit organizations (in their state), but also apply for recognition by the IRS as a tax-exempt organization. This tax-exempt status is granted by the federal government through the IRS, and is available only to entities already holding non-profit status.

Non-Profit Incorporation

Non-profit organizations are formed by incorporating in the state in which they do business. You incorporate a non-profit so that it exists as a separate legal organization in order to a) own its own bank account; b) be eligible for sales, property, and income tax exemptions; c) ensure that the non-profit can continue on its own; and d) protect yourself personally from liability from operations of the non-profit.

U.S. Fletcher Clubs interested in pursuing non-profit status in their home state should file with their Secretary of State, Corporation Division by completing the local state form, paying the relevant initiation fee (usually between $30 and $50), and submitting their Articles of Incorporation to outline the Club’s nature and purpose.

How does federal 501(c)(3) status differ from 501(c)(7)?
501(c)(3) status is designated for all charitable organizations, including educational groups such as Alumni Associations or Clubs. 501(c)(7) status is designated for social Clubs, which are organized for “pleasure, recreation, and other similar non-profitable purposes.” A Club with 501(c)(3) status is exempt from federal tax, and donations to the Club are tax-deductible. (This includes membership dues.) While a Club with 501(c)(7) status is exempt from federal tax, donations to the club are not tax-deductible.
Does my club need to file an Annual Return with the IRS?
If your Club has 501(c)(3) or 501(c)(7) tax-exempt status, you are required to file an Annual Return.