The club is a federal 501(c)3 nonprofit organization. This means we pay NO federal tax and any contributions to the club are tax deductible to the
extent allowed by law. The club is NOT exempt from Illinois state sales tax with any of its purchases.
Under Final Regulations on pg. 2 of Publications 557 and pgs. 13,14 of Supplementary information of the Final regulations document it states:
“The Treasury Department and the IRS received two comments expressing support for amending the regulations to reflect the $50,000 threshold and
one comment stating, without explaining why, that organizations with annual gross receipts normally not more than $50,000 but more than $25,000
ought to be required to file a return. As discussed earlier in this section III, the Treasury Department and the IRS increased the filing threshold from
$25,000 to $50,000 in 2011 based on a consideration of the needs of tax administration. The Treasury Department and the IRS continue to consider the
$50,000 threshold to strike an appropriate balance between the efficient use of resources for both tax-exempt organizations. Organizations with gross
receipts below the threshold must continue to file Form 990-N under section 6033(i).”
Accordingly, the final regulations provide that the gross receipts threshold for all organizations (other than private foundations and supporting
organizations) formed in the United States is $50,000.
IMPORTANT FINANCIAL REPORTS AND DOCUMENTS:
Reference: (See IRS Publication 557 — How to Apply for and Retain Exempt Status for Your Organization)
- Form NFP 102.10 – Articles of Incorporation
This is the form completed when applying to become “Incorporated” obtaining 501(c)3 nonprofit organization status and to report the
Registered Agent information.
o The purpose of establishing a registered agent is to have someone to whom service of process on the corporation may be served and to
whom all official correspondence from the Secretary of State may be sent. Failure to maintain a registered agent and a registered office
will ultimately result in the involuntary dissolution.
o Qualifications:
▪ An individual who resides in Illinois OR
▪ A business entity authorized to transact business in this state
The registered office must be:
▪ Located in Illinois and must be a street or road address. P.O. Box numbers will not be accepted. - Form NFP 105.10/105.20 – Statement of Change of Registered Agent and/or Registered Office
Any changes in either the registered agent or the office must be reported as soon as the change occurs. Prompt reporting of changes ensures
correspondence will be completed on time.
The Algonquin Garden Club application was submitted July 6, 2001 and approved by Jesse White, Secretary of State effective September 20,
2001 under IRC Section 509(a)(2). We also qualified to receive tax deductible bequests, legacies, devises, transfers, or gifts under IRC Sections
2055, 2106, and 2522. - Determination Letter
Once a nonprofit organization has been approved for 501(c)3 status, they are issued a “determination letter” recognizing exemption. Issued on
IRS letterhead, the Letter of Determination includes the organization’s legal name and trade name (if applicable), EIN number, and effective date
of 501(c) status.
*Note: A copy of this letter is always kept in the current President’s Handbook. (To be transferred if a new handbook is created).
A copy of the original NFP 102.10 form submitted is attached to this letter along with a letter from the Director of Exempt
Organizations. - 501(c)3 nonprofit reports required annually:
a) Form NFP 114.05 – Domestic/Foreign Corporation Annual Report – It includes:
I. The current club Registered Agent info
II. The current club Officers and Directors
This is an annual report to the Secretary of State and requires the President’s signature.
b) Form AG990-IL – Illinois Charitable Organization Annual Report – It includes:
I. Summary of Revenue
II. Summary of Expenditures
III. Summary of Paid Fundraiser and Consultant Activities
IV. Paid Compensations
V. Charitable Program Descriptions
VI. Various organizational questions
This is an annual report to the Illinois Attorney General and requires the signature of the President and Treasurer.
c) Form 990-N-(e-Postcard) – Federal IRS Report
This report can only be submitted electronically, there is no paper form. Any organization that fails to meet its annual reporting
requirement for 3 consecutive years will automatically lose its tax-exempt status and will have to reapply.
- Affirmation Letter – A tax-exempt organization may need a letter to confirm its tax-exempt status or to reflect a change in its name or address.
If so, an organization may generally contact Customer Account Services by phone, letter, or fax to request an affirmation letter.
*Note: A copy of this letter is requested annually.
Algonquin Garden Club 