Federal Tax Reporting Requirement

Rotary International (RI) and its clubs and districts are entitled to exemption from federal income tax under Section 501(c)(4) of the Internal Revenue Code. While Rotary districts and clubs are exempt from paying federal income tax, the law does require Rotary clubs and districts to file an annual information return on IRS Form 990, on or before the 15th day of the 5th month following the close of the annual accounting period 
(15 November).

Clubs with gross receipts under $25,000 had previously been exempt from this filing requirement. In 2008, clubs or districts with gross receipts of $25,000 or less will be required to file Form 990-N, which is an electronic e-Postcard report. This report is required annually starting 15 November 2008. Failure to meet the annual filing requirement for three consecutive years will result in revocation of the tax-exempt status of the club or district in question.

Clubs with gross receipts over $25,000 are still required to file either the standard Form 990 or the 990-N, depending on size and total assets. 

For either Form 990, the club is required to file under its own Employer Identification Number (EIN).

Though clubs and districts do not have to pay federal income tax, donations to clubs and districts are not tax deductible as a charitable contribution. However, such deductible status is possible for a contribution to any club or district charitable fund that has been independently classified by the IRS as qualifying under Section 501(c)(3) of the Internal Revenue Code.

If your club has established an incorporated charitable foundation, qualifying under Section 501(c)(3) of the Internal Revenue Code, you must also file the Form 990. In this case, you must also have a separate Employer Identification Number (EIN) for the charitable foundation. 

District 7750 support is available if you need help in determining the requirements for your club.   Contact Treasurer@Rotary7750.org or Secretary@Rotary7750.org for assistance.  

We need to know for certain that your club understands and has assigned accountability for these filing tasks. We need one of your club officers (President, Secretary or Treasurer) to complete an online questionnaire to confirm that no later than October 15

To complete the online questionnaire, the information you will need to have on hand is: 

  1.  Whether your club has a Federal Employer Identification Number (EIN) for the club itself (the club's operating financial entity)

  2. Who is responsible for the annual filing of Form 990 for the club itself

  3. Whether your club has a separate 501(c)3 charitable foundation

  4. If so, who has in his/her possession that documentation (articles of incorporation and 501(c)3 certification), and

    • Whether the 501(c)3 has its own separate Federal Employer Identification Number (EIN) and

    • Who is responsible for the annual filing of Form 990 for the 501(c)3

When you have all this information at hand, please continue to the online questionnaire: http://www.questionpro.com/akira/gateway/1033144-24140895-0 

Remember, this questionnaire needs to be complete by October 15, and we will be following up to ensure compliance by all clubs. 
This is a federal tax reporting requirement and, as such, is not optional. The Form 990 needs to be filed by November 15Click here for complete details on this filing requirement.  

If you have problems completing the questionnaire, contact ITSupport@Rotary7750.org
For help with determining whether you have the correct information, contact Treasurer@Rotary7750.org or Secretary@Rotary7750.org


Bobby Elrod
District 7750 

E-Mail: ITreasurer@Rotary7750.org