Rotary and Form 990N

Return of Organization Exempt from Income Tax

Before Filing

Each Club must have its own EIN

Who Must File?Although a

‘Subordinate Organization’ of Rotary International

Each Club must file its own return

Which Form?Form 990?

Form 990EZ?

Form 990N?

Form 990Normal Annual Gross Receipts ≥ $200,000

Or

Total Assets ≥ $500,000

Form 990EZ

$50,000 < Normal Annual Gross Receipts > $200,000

Form 990N

Normal Annual Gross Receipts ≤ $50,000

A DefinitionGross Receipts –

amounts pledged or given to the club during the

accounting year

Another Definition

Normal Annual Gross Receipts ≤ $50,0003 conditions

1.In existence for ≤ 1 year & gross receipts ≤ $75,000

2.In existence 1 to 3 years & average gross receipts ≤ $60,000

3.In existence for at least 3 years and average gross receipts ≤ $50,000 for

immediately preceding 3 years

Examples

Rotary Club of Big Small Town Organized September 5, 2012

Received Cash $70,000 Other Property 1,000

$71,000

Rotary Club of Big Small Town

In existence less than 1 year

Normal Annual Gross Receipts ≤ $75,000

Files 990N

Paradise Evening Rotary Club

Organized June 11, 2011

Gross Receipts 2011 $73,000 2012 20,000 2013 (so far) 35,000

Paradise Evening Rotary Club

In existence more than 1 year & less than 3

Average gross receipts = $46,500 for the first 2 years

Normal Annual Gross Receipts < $60,000

Files 990N

Big Old City Noon Rotary Club Situation 1

Organized in the last century

Gross receipts 2010 $ 4,000 2011 45,000 2012 200,000

Big Old City Noon Rotary Club –

Situation 1 In existence more than 3 years

Average gross receipts = $49,667 for the last 3 years

Normal Average Gross Receipts < $50,000

Files 990N

Big Old City Noon Rotary Club – Situation 2

Organized in the last century

Gross Receipts 2011 $ 45,000 2012 100,000 2013 75,000

Big Old City Noon Rotary Club – Situation 2

In existence more than 3 years

Average Gross Receipts for last 3 years = $73,333

Normal Annual Gross Receipts > $50,000 but > $200,000

Files 990EZ

How to File

Only electronically

Go either to www.irs.gov or http://epostcard.form990.org

Information Necessary to File

Organization’s name – Rotary International Other name used – ex. d/b/a Kearney Dawn

Rotary Club Club’s mailing address Club’s website Club’s EIN Club’s principal office – the president Organization’s tax year – calendar year Club’s annual gross receipts Is the club still a going concern?

When is the 990N considered filed

Must be filed electronically Paper return not accepted as a filed 990N

From 990N must be complete An incomplete Form 990 is not accepted as a

filed 990

When is Form 990N complete? All applicable lines are complete

Each question is answered unless the instructions direct not to answer

Entries are made on all lines requiring an amount even if that amount is 0

Explanations are provided as instructed

Filing Late

IRS will send notifications if return is not filed on time

There is no penalty for filing a late 990N

Failure to File for 3 YearsIf a club fails to file Form 990N for 3 consecutive years it will LOSE its TAX EXEMPT STATUS as of the filing date of the third year

Reinstatement of Tax Exempt Status Form 1024, Application for Recognition of

Exemption Under Section 501(a) must be filed

Form 8718, User Fee for Exempt Organization Determination Letter Request, must be filed

Form 8718 fee must be paid at the time of filing

Currently the fee is $850