July 2018 Marilyn Madigan LAOH National Treasurer 2016-2018 Treasurer’s Workshop July 2018 Marilyn Madigan LAOH National Treasurer 2016-2018

Charitable Organization The National Board is a 501(c)3. The States, County Boards and Divisions are recognized as 501(c)10 for tax exempt purposes. Tax exemption has been given by the IRS and the type is designated in the Determination letter. Organizations to be tax exempt must be operated for exempt purposes and not be an action organization. Tax exempt Organizations are required to file a 990/990EZ/990N postcard annually by May 15

Financial Record Keeping for Tax Exempt Organizations The Year End Reports have listed Donations Received. In Revenue for the 990, Donations will be listed as Contributions, Gifts, Grants Received. The Year End Reports have listed Fundraising Projects. For the 990, these funds would be recognized as Program Service Revenue. The Year End Reports have listed Interest. For the 990, interest is regonized as Investment Income. Under Expenses on the Year End Reports, donations was listed. Donations is Grants and Similar Amounts paid on the 990 Operating/General Expenses includes Occupancy, Rent, Utilities, Maintenance on the 990 Continue to record Printing, Publications, Postage and Shipping Other expenses include expenses for Fundraising/Conventions, Bank Charges, Supplies, Per capita taxes, State Assessments, Flowers and gifts.

Definations and Differences Donations is a contribution of money or property given to a 501(c)3 organization such as a Church, Hospital, School, etc. Grants are given to other organizations to further our exempt purpose and the funds are designated how the money is to be used. Examples include Scholarships, Awards, FFAI, Project St. Patrick, SOAR, Columban Fathers and Sisters Gifts are money given to individuals, families or business that meets are exempt purpose. Examples include helping families or individuals after some unforeseen financial burden such as a fire or needed health expenses Donations need to be given to a 501(c) 3 organization. Grants can be given to any exempt organization, non exempt organization or individual as long as the funds are designated how to be used and meet our exempt purpose. Gifts can be given to any individual or group where the gift is in accordance with our exempt purpose.

LAOH Exempt Purpose To promote charitable and humanitarian causes approved by the membership To promote our Irish and Catholic heritage Examples of meeting our exempt purposes include Columban Fathers and Sisters, FFAI, Irish History and Cultural promotions, Project St. Patrick, SOAR

Conclusion Goal is to simplify the Annual Year End Reports to meet the reporting on the IRS 990. To check for status of Tax Exempt Organizations and a copy of Determination letters check www.irs.gov/Charities-&-Non-Porfits/Exempt-Organizations- Select-Check For more information on Tax exempt Organizations visit the IRS website www.irs.gov Credits IRS Website and the Non profit Giving on the LAOH NYS website