1. SWE, Your EIN, and the IRS Penny Wirsing, FY14 Treasurer

2. Federal Tax Exemption All sections can be covered by SWE 501(c)3 status Provides exemption from federal taxes, allows certain donations Many sections already have subordinate status (see attached) To obtain subordinate status, a section must: Obtain a unique section EIN# (Appendix F of Finance Manual) File a request form with HQ (Form on Governance Docs)  HQ files documents with IRS by end of March annually Some collegiate sections may be covered by their university First check with your university – if covered by them, you’re done! Can be checked at http://www.irs.gov/app/ePostcardhttp://www.irs.gov/app/ePostcard If not covered by them, follow the steps above Page 2

3. Applying for an EIN Page 3 Complete Online (Recommended method) Monday through Friday 7:00 a.m. to 10:00 p.m. Eastern time. Will be asked questions, validated, and receive EIN http://www.irs.gov/Businesses/Small-Businesses-&-Self- Employed/Apply-for-an-Employer-Identification-Number-(EIN)- Onlinehttp://www.irs.gov/Businesses/Small-Businesses-&-Self- Employed/Apply-for-an-Employer-Identification-Number-(EIN)- Online Toll-free Telephone (800) 829-4933. Will be given number over phone when complete. NOTE: Due to the Patriot Act and IRS checks, the initial set up for an EIN requires the treasurer’s SSN. However, this is removed from the account after verification purposes. There is no way around this.

4. Filing a Subordinate Org Request Form Data Required to Complete Form: Name and Number of Section Unique Section EIN Number Street Address of Section Has section previously been offered an exempt ruling by IRS Page 4 Request for Tax Exemption (Governance Docs)

5. IRS Filing Requirements Submit to IRS between July 1 and November 15 For sections with gross receipts <$50,000 Submit IRS Form 990-N Commonly referred to as the e-Postcard For sections with gross receipts >$50,000 Submit a full IRS Form 990 or 990EZ SWE does not cover any of this filing for the sections What happens if you don’t file? You risk losing your tax-exempt status!! Go to www.irs.gov/eo for complete details or review the information in the Finance Manual (Appendix H)www.irs.gov/eo Page 5

6. www.irs.gov/eo

7. >50k, Online training from IRS

8. e-Postcard (Form 990-N) Page 8

9. e-Postcard - Information Needed Page 9 Completing the e-Postcard requires the eight items listed below: 1.Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN). This must be a unique EIN to your section!Employer identification number 2.Tax yearTax year Example: SWE FY13 (July 2012-June 2013), enter tax year as 2013 and must file by November 15, 2013 3.Legal name and mailing address “section number, “university/college name” SWE section “section number, “SWE Section name” SWE section 4.Any other names the organization uses Usually N/A 5.Name and address of a principal officer Section treasurer’s name and address 6.Web site address if the organization has one [see next slide]

10. e-Postcard - Information Needed Page 10 7.Confirmation that the organization’s annual gross receipts are $50,000 or lessgross receipts Are your gross receipts still normally $50,000 or less? Mark YES Has your organization terminated or gone out of business? Mark NO unless your section has been deactivated 8.If applicable, a statement that the organization has terminated or is terminating (going out of business) Submitting your e­Postcard (Form 990­N) Once you have completed your section’s e­Postcard, click the “Submit Filing to IRS” button. Details Available at : http://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Annual-Reporting- Requirements-Annual-Electronic-Notice-(Form-990-N)-for-Small-Organizations:-Information-Reportedhttp://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Annual-Reporting- Requirements-Annual-Electronic-Notice-(Form-990-N)-for-Small-Organizations:-Information-Reported

11. Print a copy for your records and to make next year easy. Once the IRS receives and processes your e-Postcard (usually within 30 minutes), you will receive an email indicating whether your e-Postcard was accepted or rejected. If accepted, you are done for the year. If rejected, the email will tell you why it was rejected and how to correct the problem. e-Postcard - After filing

12. Other Information State tax exemption Varies by state, must be pursued by individual Sections/MAL/Regions The Governance Documents site contains a copy of IRS letter of exemption, which may be needed when applying for local sales tax exemption, as well as other documents that may be needed to open a bank account (e.g. Articles of Incorporation) Page 12

13. Finance Manual Updated in July 2012 Everything you need to know is in here – please provide feedback for additional clarification or topics Located in SWE Governance Documents and SWE Money Community Page 13 Finance Manual (Governance Docs)

14. For Finance Questions or More Info Penny Wirsing, FY14 Treasurer treasurer@swe.org Cindy Hoover, FY14 Finance Chair finance-chair@swe.org Kellie Anton, FY14 Finance Chair-Elect kellie.e.anton@swe.org On-Line Resources SWE Communities – SWE Money SWE Governance Documents IRS Web page: www.irs.treas.govwww.irs.treas.gov Page 14

15. Sections Covered Under SWE 501(C)3 August 2013

16. Region A Region B Sections covered under SWE 501(C)3

17. Region C Region D Sections covered under SWE 501(C)3

18. Region E Region F Sections covered under SWE 501(C)3

19. Region G Region H Sections covered under SWE 501(C)3

20. Region I Region J Sections covered under SWE 501(C)3