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Zonta Fundraising/501(c) FUEL FOR CLUBS / SATISFYING INTERNAL REVENUE SERVICE Why do Zonta Clubs need funds? Amelia Earhart Fellowship Awards Donations to Zonta International Foundation Jane M. Klausman Scholarships Operational capital for clubs Service Projects Young Women in Public Affairs Awards Z and Golden Z Clubs Before we discuss the benefits of fundraising, potential donors and brainstorming, let’s discuss the IRS filing by civic organizations on the 501(c). Satisfying IRS 501(c)(3) vs. 501(c)(4) According to the Internal Revenue Service Code, 501(c)(3) and 501(c)(4) organizations are nonprofit organizations that are exempt from paying federal income tax. 501(c)(3) organizations are either a public charity, private foundation or private operating foundation with open membership. 501(c)(4) organizations are civic leagues or associations operated exclusively for the promotion of social welfare or local associations of employees with limited membership. Satisfying IRS 501(c)(3) vs. 501(c)(4) 501(c)(3) organizations are not permitted to engage in political activity, endorse or oppose political candidates, or donate money or time to political campaigns. 501(c)(4) organizations can engage in unlimited lobbying so long as it pertains to the organization's mission. Donations made to 501(c)(3) organizations are deductible to the full extent of the law as charitable contributions. Donations made to 501(c)(4) organizations are not deductible, though some businesses who make these contributions often write them off as advertising or business expenses. Satisfying IRS Zonta International Foundation is a not-for-profit charitable organization supported solely by contributions from Zonta Clubs, individuals, and business entities. All Zonta Clubs chartered by Zonta International are 501(c)(4). Some Zonta Clubs have set up Foundations which are 501(c)(3). NOTE: Some States may require just a Club prepared financial statement while other States may required audited financial statements. It is important to check in your State requirements in order to be in compliance. Satisfying IRS Reporting the club’s status to IRS is filed on a 990-N (online postcard), a 990 or 990-EZ depending upon the amount of revenue your club received June 1, 2011 to May 31, 2012. Only US and Puerto Rico Clubs are required to file. Club Treasurer is responsible for filing this information with IRS in October 2012. Area Director and District Treasurer are available to assist in the filing process. Satisfying IRS If you have revenues LESS than $50,000.00 you MUST file the 990-N online, no exceptions. If you have revenues greater than $50,000.00 you CANNOT use the online filing and must report to ZI or directly file the form 990 or 990EZ yourself. In the event that your club is a foundation you MUST file directly with the IRS the form 990 or 990EZ. Who benefits from fundraisings? Local community projects Women throughout the world we have never met Women advancing their education Zontians (us) receiving satisfaction that we have played an important role in improving women’s legal rights, health, education, economic status by ending violence against women and enhancing women’s self esteem Reminders Our Mission To advance the status of women worldwide Members must understand the organization before they attempt to promote it! Review “Public Relations Tool Kit” Make use of this kit to communicate our mission to key publics in order to increase awareness, understanding, support, and cooperation. Potential Financial Donors Associates through work Business owners you know Close friends Members of other organizations Most successful people you know Professionals you know Your neighbors Your relatives While brainstorming ideas….. Do you have sponsors and will they share in the work? What is the number count of club members who will help and what jobs will they perform? What special talents do your club members have to help with chosen fundraiser? Will your club perform all the tasks of the event? Is there a current trend or community fit that would help anchor an event? While brainstorming ideas….. Encourage communication between area clubs to ask questions of each others successful and not so successful fundraisers. Visit District website to see posted club events. If interested, contact the club. NOTE: Clubs are encouraged to donate 1/3 of their total service funds to Zonta International. Fundraising Ideas Interview preselected participants (2-3) on their club’s most recent fundraising event. Review the Zonta Project Proposal document to formulate some interview questions. Give document to all attendees after the interviews.