Chapter Presidents’ Winter Meeting January 22, 2011

2 Welcome Debbie Day, Associate Vice President for Alumni Relations Tom Tillar, Vice President for Alumni Relations Curry Roberts, President, National Board of Directors Kendley Davenport, National Board of Directors, Chapters Committee Chairperson

3 National Board of Directors Chapters Committee Goals Involving national board members in local chapter events Creating opportunities to connect with current students Improving communications with chapters

4 Challenges and Opportunities

5 New Programs & Services for Chapters Chapter Articles of Association Annual Chapter Tax Reporting Alumni Career Resources and the Hokie Nation Network Welcome Wagon

6 Chapter Articles of Association Will take effect July 1, 2011 All chapters required to sign Will be kept in permanent chapter file in Blacksburg Document update required with change of presidential leadership/chapter contact. Why is this required? Needed for new IRS tax reporting requirements Provides volunteers with clear expectations Condenses online information into concise document Best practices of ACC schools

7 Annual Chapter Tax Reporting 990-N e-postcard must be filed by all chapters with less than $50,000 annual gross receipts Due by November 15th annually Questions? Contact Josh Burnheimer at (540) or

8 Effective January 2011 Due to a new IRS law, ALL chapters are now required to file annually with the IRS. The first year a chapter files, there is a four step process highlighted below. For every following year, each chapter will be required to file the 990-N e- postcard (step 4), and if their presidency changes, they must re-sign the chapter articles of association (step 2). Step 1: Obtain a chapter Tax Identification Number (TIN) from the IRS Alumni chapters are considered a 501(c)(4) organization, which means they are exempt from income tax, but not sales tax. Chapters are not part of an umbrella 501(c)(3) and therefore cannot use the Virginia Tech Alumni Association’s TIN from Blacksburg. Each chapter is required to have its own Employer Identification Number (EIN); which should not be an individual volunteer’s social security number. A TIN is often needed to open a bank account; so most chapters should already have one. Getting a EIN is very simple. You can apply online, by phone, fax or even U.S. Mail. The website is: or you can call

9 Step 2: Sign your Alumni Chapter Articles of Association The Alumni Chapter Articles of Association should be signed prior to applying for recognition of tax exempt status (step 3), and should be re- signed with each new incoming president and sent to the alumni association office in Blacksburg for filing. Step 3: Apply for recognition of exempt status with the IRS The IRS has taken the position that it will not accept a Form 990, Form 990-EZ, or a Form 990-N from an organization that has not applied for recognition of exempt status. So, at least 60 days before submitting Form 990-N, an officer or other authorized representative of the chapter must call the IRS Exempt Organization Division at and explain that its nonprofit organization needs to submit Form 990-N but has not applied for tax exempt status with the IRS. They will ask several questions and create a file for the organization in their computer. It takes 60 days to process your file. The chapter must wait until after the file is set up and processed before you can submit Form 990-N. Contact the IRS as soon as possible to ensure this is set up. This is a one-time process for the first year only. When you speak to the IRS, you will need your TIN, your signed articles of association, the amount of your annual gross receipts and the end month of your accounting period (June 30). Please advise the IRS you are considered a 501(c)(4) organization, and not under an alumni association 501(c)(3) umbrella. You do not need anything from the alumni association to complete the application for exempt status (you do not need a group exempt number or the alumni association’s TIN).

10 Step 4: File your 990-N e-postcard Small tax-exempt organizations (i.e. chapters) whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N (e-postcard) annually. The 990-N is due to the IRS by November 15 th annually. Gross receipts are the total amounts the organization received from all sources during its annual accounting period (July 1-June 30), without subtracting any costs or expenses. The e-postcard is very short and only consists of 8 questions: 1.Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN). 2.Tax year 3.Legal name and mailing address 4.Any other names the organization uses 5.Name and address of a principal officer 6.Web site address if the organization has one 7.Confirmation that the organization’s annual gross receipts are normally $50,000 or less 8.If applicable, a statement that the organization has terminated or is terminating Important points If a chapter does not file, they may lose their federal tax exemption and could be required to pay income tax on all money collected. Chapters are not exempt from sales tax, only income tax. If a chapter has over $50,000 in gross receipts annually, please contact your chapter liaison.

11 Alumni Career Resources Developed to assist alumni with career goals Nancy Brittle, , In conjunction with the Hokie Nation Network Gwen Harrington, , Chapter Officer Webinar: Career Resources & Hokie Nation Network March 23 rd at 7:00 p.m.

12 Welcome Wagon New report being developed for this program Easily identify alumni who have recently moved into the chapter area Coming in late Spring 2011

13 Chapter Presidents, What Would You Do If …?

14 Thank you for joining us today!