Federal Income Tax Group Exemption for NIGP Chapters

A value-added service, available at no cost to active NIGP Chapters..

I am delighted to invite all NIGP affiliate chapters to participate in NIGP’s group exemption from Federal income tax. This service will enable chapters to be recognized as exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code on the basis of their relationship with NIGP. Chapters that do not already have an IRS determination letter recognizing their exemption under Section 501(c)(3) can use the group exemption to ensure their tax-exempt status, and to assure those who may want to make gifts to the chapter that their contributions will be deductible for Federal and state income tax purposes. Gifts donated from a Legal Will would also be deductible for estate tax purposes.

HOW?

In order to participate in the group exemption, a chapter must submit the following documents and information to NIGP:

	A signed copy of the Chapter Affiliation Agreement.
	Copies of the Chapter’s articles of incorporation (if any), Constitution (if any), and Bylaws. NIGP’s lawyer, Chip Watkins, will review these to ensure that they satisfy the requirements for exemption under Section 501(c)(3). If they do not, he will send you sample language for amendments that are required. Once these amendments have been adopted, the Chapter can be included in the group exemption.
	The Chapter’s mailing address and (if different) its street address. (The IRS will send information, returns, etc. to the mailing address. The street address can be the home or office of an officer, or other member whose address will not change frequently. If you use an officer’s address, you will need to change the address annually.) The Chapter must also notify NIGP and the IRS when either of these addresses change.
	The Chapter’s Employer Identification Number ("EIN") issued by the IRS. If the Chapter does not have an EIN, it must submit an unsigned Form SS-4, and a signed Form 2848. Together, these forms will authorize Mr. Charles Watkins, NIGP legal Representative, to obtain an EIN on behalf of the NIGP Chapter. When the EIN is assigned, Chip Watkins will notify you, and the Chapter will separately receive a notice from the IRS. The chapters gross receipts for each of its last three completed fiscal years, including all dues, gifts, program fees, interest and other income.

The original applications for group exemption were submitted to the IRS in 1999 on behalf of eight NIGP chapters. We can submit additional chapter names to the IRS at any time and now have over 17 chapters who have received Group Exemption through NIGP. Chapters who desire to be added to the group exemption should send the information and documents listed above to NIGP Attn: Jennifer Steffan, Chapter Relations Manager, Fax 703-736-9677.

If you have questions, you can reach Chip Watkins at (202) 785-9500, ext. 34; by fax at (202) 835-0243, or by e-mail at cwatkins@wc-b.com

Charles M. Watkins
Webster, Chamberlain & Bean
1747 Pennsylvania Avenue, NW, #1000
Washington, D.C. 20006-4693