Financial Management
Financial Management Overview
Federal Tax Information
- Employer Identification Number (EIN) - EIN stands for "Employer Identification Number. It is also known as a Federal
Tax Identification Number, a nine-digit number the IRS assigns
to business entities. 4-H clubs and other 4-H entities need an
EIN number to open a bank account. Personal social security numbers
should never be used for 4-H accounts. Form SS-4, Application
for Employer Identification Number, is available on the IRS
Website.
The IRS recently changed the online tool for obtaining an EIN. This new process requires a Social Security Number. The online process is not recommended. Instead, groups should complete the SS-4 form, posted on the IRS website, then print and fax or mail it per the instructions for the SS-4.
Sample Form SS-4 (1 page, 29 KB) - Sample Form SS-4 form on the National 4-H Headquarters website. The form is used to obtain an Employer
Identification Number for a 4-H club or other 4-H unit.- SS-4: Where to File or Fax - The online process is not recommended for submission of the SS-4 form since a Social Security Number is required.
- Tax Exemption Status of 4-H Clubs & Affiliated 4-H Organizations - As determined by the Internal Revenue Service (IRS), chartered 4-H Clubs and formally recognized affiliated 4-H organizations under the control of Cooperative Extension are eligible for inclusion as a subsidiary of National 4-H special exemption from federal income tax under the provisions which correspond to section 501(c)(3)* of the IRS Code. This means that formally authorized 4-H groups are exempt from paying federal income tax on funds raised on behalf of 4-H, or to support educational programs; and donors may deduct contributions to 4-H clubs and affiliated 4-H organizations such as: bequests, legacies, devises, transfers, or gifts as applicable under the IRS Code.
- Request for Inclusion & Certification of 4-H Groups Under National 4-H Tax Status - As part of the new IRS reporting requirements, as a tax-exempt organization, National 4-H is
now required to annually certify the list of subsidiary groups registered to use our National 4-H
Group Exemption Number (GEN). National 4-H Headquarters has developed this fact sheet that more clearly explains this procedure.
- 2008 Electronic Filing Requirements for 4-H Clubs & Affiliated 4-H Organizations under GEN 2704 - There are new annual IRS electronic filing requirements for small tax-exempt organizations that will impact 4-H
programs beginning in 2008. National 4-H Headquarters has developed this fact sheet to assist 4-H clubs and units understand and complete this process.
- IRS Publications and
Forms - 990 - Return of Organization Exempt for Income Tax
and 990EZ - Short Form Return of Organization Exempt from Income
Tax. While 4-H organizations are exempt from Federal income taxes,
any 4-H organization with gross receipts over $25,000 during the
tax year must file Form 990.
- Appropriate Use of 4-H Name and Emblem in Regards to Livestock Sales, Auctions and Similar Events - Fact Sheet located on the National 4-H Headquarters Website. The income received and the funds paid at these events are subject to Federal tax laws and Internal Revenue Service (IRS) regulations. The following FAQ is available to assist local groups: Livestock Sales and Prize Winnings Related to 4-H Programs: Taxable Income and Charitable Contributions
State Tax Information
- State Tax Facts (2 pages, 49 KB) - Document outlines Wisconsin tax exempt status for 4-H organizations.
Sales and Use Tax
 "Wisconsin Sales and Use Tax" - Streaming audio from the May 11, 2007 4-H Youth Development Program Area Wisline. Presenter:
Janet Abrams, Staff Specialist, with the Wisconsin Department of Revenue. The presentation covers Sales and Use tax as it applies to non-profit organizations and sales tax obligations as it applies to county government.
- Wisconsin Department of
Revenue - The Wisconsin Department of Revenue web site includes
helpful information regarding sales and use tax, and application
and information for sales tax exemption certificate.
-
Sales Tax Exemption for Nonprofit Organizations - State
of Wisconsin, Department of Revenue - Publication 206, provides
detailed information on sales tax exemption for nonprofit
organizations (8 page publication).
-
Wisconsin Sales and Use Tax Certificate of Exempt Status Application
(CES), Form S-103 - To assist retailers in identifying organizations that qualify for exemption from Wisconsin sales and use tax, as provided in section 77.54(9a)(f) Wis Stats, the Department of Revenue issues the organization or governmental unit a Certificate of Exempt Status (CES) number. A CES number can be obtained by submitting a completed Application for Wisconsin Sales and Use Tax Certificate of Exempt Status Application Form S-103 and the following documentation:
- Articles of incorporation or bylaws
- Statement of receipts (income) and disbursements (expenses) for their last accounting period.
- National 4-H Headquarters letter notifying the 4-H unit of inclusion under the Federal Group Exemption number.
- Wisconsin
Sales and Use Tax Information for Nonprofit Organizations - Provides information on the types of organizations that qualify for a certificate of exempt status and the application process.
-
Wisconsin Sales and Use Tax Information - Publication 201, provides detailed information on Wisconsin Sales and Use tax (63 page publication).
- Application
for Business Tax Registration - To obtain a seller's
permit, a nonprofit organization must complete Form BTR-101,
Application for Business Tax Registration, and mail to the
Department of Revenue. This application form may also be obtained
from any department office. Online registration is also available.
State Charitable Organization Registration and Reporting
Fund Raising and Donations
- FundRaising: Private Support for the 4-H Program (1 page, 76 KB) - National 4-H Headquarters Fact Sheet providing an overview of critical elements of the Code of Federal Regulations and USDA Guidelines that pertain to 4-H fund raising.
- Fund Raising (2 pages, 46 KB) - Covers key points of the purpose
of fund raising, guidelines for fund raising and special considerations
in conducing raffles and using the 4-H name and emblem in fund
raising.
- Acknowledging Charitable Donations (2 pages, 48 KB) - Document outlines recommended procedures for acknowledging cash and non cash donations.
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