- Frequently Asked Questions
- ICG GEL Filings
- Participating Chapters and SIGs
- No Longer Participating Chapters and SIGs
- ICG GEL Resources
- How to participate in the ICG's GEL
- Sample GEL Inclusion Statement
- Sample Balance Sheet
- Sample Income/Expense Report
- Sample Form 990-N Receipt
- Checklist for Filing Annual GEL Reports
- Tracking and Reporting Finances with Quickbooks
- Verification of tax-exempt status
- Managing a Non-Profit Profile in GuideStar
- IRS GEL Resources
- Employer Identification Number (EIN) Application
- IRS Form 990-N (ePostcard): "Annual Electronic Filing Requirement for Small Exempt Organizations"
- 26 U.S.C. § 501(c): "Tax Exempt Organizations"
- IRS Publication 557: "Tax-Exempt Status for Your Organization."
- IRS Publication 4573: "Group Exemptions."
- Exempt Organizations Select Check App
Frequently Asked Questions
- Why should my chapter or SIG participate in the ICG GEL?
- How does my chapter or SIG start the process?
- What is required when filing annual GEL reports?
- What is the role of the ICG GEL Administrator?
- How can donors and financial institutions verify my chapter or SIG tax-exempt status?
Why should my chapter or SIG participate in the ICG GEL?
Chapters enjoy a number of advantages by participating in the ICG GEL:
- Chapters are recognized as exempt from federal income tax under section 501(c)(3) of the Code
- Donors may deduct contributions to chapters as provided by section 170 of the Code
- Bequests, legacies, devises, transfers, or gifts to chapters are deductible for federal estate and gift tax purposes
- Chapters are exempt from the requirement to file IRS Form 990-N, “Exempt Organization Business Tax Return”
- Chapters can use their federal tax exempt status to file for state tax exemption status.
How does my chapter or SIG start the process?
Chapters and SIGs who wish to be included in the ICG GEL Letter should submit the following items to the GEL administrator at email@example.com (PDF format preferred).
- A letter stating that the chapter or SIG:
- is affiliated with the ICG;
- accepts the ICG Uniform Governing Instrument (UGI);
- is eligible to qualify for exemption under the same 501(c) paragraph as the ICG;
- is not a foundation;
- has a fiscal year that ends on December 31st;
- is willing to be exempt from the date of application.
- A detailed description of the purposes and activities of the chapter or SIG , including the sources of receipts and the nature of expenditures.
- A sample copy of a uniform governing instrument, (such as a chapter’s or SIG’s articles of incorporation or articles of association). Chapters and SIGs are not reqired to be incorporated.
- An affirmation that, to the best of the officer’s knowledge, the purposes and activities of the chapter or SIG are as stated in (2) and (3) above.
- The federal EIN number for the chapter or SIG.
- The chapter’s or SIG’s financial reports for the prior year, as indicated above:
- Balance Sheet.
- Income and Expenses Report.
- A list of the chapter’s current officers with their mailing addresses
Chapters and SIGs can submit an application for participation at any time. top
What is required when filing annual GEL reports?
Once a chapter or SIG has been included in the ICG’s GEL, there is a small amount of book keeping required each year. The chapter or SIG must prepare an annual GEL report and send it to the ICG GEL administrator at firstname.lastname@example.org by July 31. PDF format is preferred. The report can include multiple files or a single file. Here is a checklist of information that is required in the annual GEL report for each participating chapter and SIG.
- Balance Sheet for the last year (Assets = Liabilities + Equity) (sample )
- Income/Expense Report, for the last year (gross receipts by category and all expenses by category) (sample )
- Statement describing primary sources of income and the nature of expenditures (sample)
- A list of the chapter’s current officers with their mailing addresses (sample)
- A receipt for the chapter’s Form 990-N for the last year (sample )
Chapters and SIGs can generate Balance Sheet and Income/Expense reports by hand, or use the copy of Quickbooks that the ICG makes available to maintain their finances and generate the reports automatically. The GEL administrator asks chapters and SIGs to file Form 990-N with the U.S. Internal Revenue Service each year. This is a short e-postcard that can be filled out and transmitted on-line to the IRS free of charge. They should include the filing receipt they receive by email with their annual GEL report. Tax exempt organizations are required to make financial reports and tax filing public. To comply with this requirement, the GEL administrator will post at least the last three years of each participating chapter’s or SIG’s reports on the ICG website. There is no need for a chapter or SIG to maintain a website to participate. Participating chapters or SIGs who do not submit complete reports by the deadline will no longer participate in the ICG’s GEL, and will lose their non-profit status. top
What is the role of the ICG GEL Administrator?
The ICG GEL Administrator facilitates compliance with U.S. tax code regulations. At least 90 days before the end of the ICG’s fiscal year (that would be the end of September), the ICG GEL Administrator files an update with the IRS that includes:
- A statement describing changes during the year in the purposes, character, or method of operation of the chapters and SIGs;
- A list of names, mailing addresses, actual addresses if different, and Employer Identification Numbers (EINs) for chapters and SIGs that, since ICG’s previous report:
- Changed names or address;
- Were deleted from or added to the roster
- For chapters and SIGs being added, the GEL Administrator attaches
- A statement that the information on which the present GEL is based applies to the new chapters
- A statement that each chapter or SIG has given the ICG written authorization to add its name to the roster
- A list of those chapters and SIGs to which the IRS previously issued exemption rulings or determination letters
- A statement that none of the chapters or SIGs is a private foundation as defined in section 509(a) of the Code
- The street address of each chapter or SIG whose mailing address is a P.O. Box;
- If applicable, a statement that the group exemption roster did not change since the previous report.
The annual submission to the IRS must be completed by September 30. The GEL Administrator can amend the submission quarterly to include Chapters and SIGs who join later.
How can donors or financial institutions verify my chapter or SIG tax-exempt status?
Donors and financial institutions often verify the tax-exempt status of a U.S. 501(c)(3) non-profit organization using the IRS Exempt Organization Select Check database. However, this database lists only central organizations, and does not include subordinate organizations who become 501(c)(3) tax exempt under a Group Exemption Letter. According to IRS publication 4573, the central organization is responsible for verifying GEL participation by its subordinate organizations. Donors can verify the 501(c)(3) tax-exempt status of a subordiante chapter or SIG by following these steps:
- Verify the tax-exempt status of the ICG, either by using EO Select Check with the ICG’s EIN: 52-1656188, or by accessing the ICG’s IRS 501(c)(3) Determination Letter.
- Verify that the ICG participates in the IRS GEL program using the IRS GEL Participation Letter
- Verify the EIN of the chapter or SIG by submitting the EIN document issued by the IRS.
- Verify participation of the chapter or SIG in the ICG’s GEL by accessing the ICG GEL Participating Chapters and SIGs page or by contacting the ICG GEL administrator.
If the donor or financial institutin requests it, the participating chapter or SIG can also download the ICG’s IRS determination letter in PDF format, save the GEL Participation page in PDF format, and email them to the donor as attachments. Many donors and financial institutions now verify an organization’s tax-exempt status by accessing third-party charitable giving databases such as GuideStar.
GuideStar allows 501(c)(3) organizations, including GEL chapters, to register and enter their information for access by potential donors. Participation is free. GuideStar is also easy to use: the information is searchable and is more complete than what is available from their 990-N filing. Participating GEL chapters and SIGs are encouraged to create a GuideStar account and update their record once they have filed their first IRS form 990N postcard and the information appears when searching GuideStar using the chapter or SIG Employer Information Number (EIN).
GuideStar records for ICG chapters and SIGs initially appear as “International Costumers’ Guild, Inc.” so it is important to update your record with the name of the chapter or SIG as shown in the “DBA” field of the 990N postcard as soon as possible. See Setting Up a Non-Profit Profile in GuideStar for step-by-step instructions. top