GFWC Newsletter 7-20-07 Exerpt
NONPROFIT GROUP EXEMPTIONS FOR GFWC CLUBS
received questions from clubs requesting tax exempt status under GFWC's group exemption as a 501c3. We would appreciate
your assistance in furthering club members' understanding of why we are not able to offer this. Reasons for this original
decision include the fact that GFWC would have to hire additional staff to keep up with the paperwork and correspondence between
the clubs, the IRS, and our attorneys and accountants. Additionally, GFWC is unable to act as tax advisors-tax-related
issues are quite complex and can be confusing even for the most experienced legal consultants.
It is true
that for several years prior to 1989, GFWC did offer this umbrella coverage. However, in 1989, the GFWC Executive Committee
decided to curtail further filings for clubs and state federations seeking nonprofit status under GFWC's group exemption...Clubs
and state federations may, of course, apply directly with the IRS for their own exemption.
Note: Clubs in Iowa cannot be covered under the GFWC/Iowa 501c3 status as GFWC/Iowa does not control the financial issues
of the individual clubs and our accountant and GFWC has advised against this. We can however issue a letter describing
your relationship to GFWC/Iowa and GFWC. If you need a letter of explanation of your association with GFWC/Iowa, contact Headquarters.