Federal Taxation for Rotaract Clubs

Taxes can be complicated! If you need assistance, email taylor@bigwestrotaract.org or seek the guidance of a tax professional!

Employer Identification Numbers (EINs)
The Employer Identification Number is a tax ID created by the IRS to publicly identify tax-exempt organizations. EINs uniquely identify each Rotaract Club for taxation & business purposes, and in general Rotaract Clubs are expected to have their own EIN.

Obtaining an EIN

If your club does not have an EIN, you can apply for one by submitting Form SS-4 or applying online

Tax Exemption

In order to be exempt from federal income tax, non-profit organizations must be recognized as exempt by the IRS.

There are two options for obtaining tax exemption from the IRS:

  • Option 1: Participate in Rotary International's Group Exemption - Rotaract Clubs have the opportunity to participate in a special group exemption under the umbrella of Rotary International. Rather than apply directly to the IRS, the easiest way for a club to become tax exempt is to send a request to RI! If you are a new club, please refer to the "getting started checklist" on the main page for more information.

  • Option 2: Apply Independently - Complete Form 1024A and submit to the Internal Revenue Service. Note that you must include the application fee of $600 for submissions to be accepted.

Tax-Deductible Donations
Distinguishing Sections 501(c)(4) versus 501(c)(3) of the Internal Revenue Code

The Internal Revenue Code recognizes dozens of different types of 501(c) organizations. However, only donations to 501(c)(3) entities are tax-deductible.

Rotaract Clubs are classified as 501(c)(4) organizations (social clubs) - donations paid directly to your club are not tax deductible.

If you need 501(c)(3) status, you have two options:

  • Work with your sponsor Club - many Rotary Clubs have established 501(c)(3) foundations

  • Partner with Big West Rotaract - if your club is in a member district of Big West Rotaract MDIO, BWR may be able to co-sponsor your event.

Frequently Asked Questions

How do I find my EIN?

Search the Tax Exempt Organization Database

Tip: Some Clubs may appear under the name "Rotary International" if they participate in the group exemption.

How do I prove my club is tax exempt?

There are 3 core documents that clubs need to maintain in order to prove their exempt status.

  1. Club EIN letter

  2. RI Exemption letter from IRS (proving RI is exempt from federal income tax)

  3. Letter from RI confirming Club's inclusion in group exemption (sample embedded below)

What are the annual filing requirements?

All tax-exempt organizations are required to file Form 990 with the IRS. Refer to the checklist here.

My Club received a notice from the IRS that our tax exemption was revoked, or according to the database my Club already has an EIN whose exemption was revoked. What do I do?

If your club's exemption has been revoked, please email taylor@bigwestrotaract.org

The document below serves as proof that the IRS has recognized Rotary International and its "subordinate units" as exempt from federal income tax. This letter, when accompanied by a letter from RI acknowledging your club's inclusion in the group exemption, serves as proof of your club's tax exemption.

2 - RI 1958 IRS Letter of Determination.pdf

Email data@rotary.org to request your club's EIN be included in the group exemption. You will receive a response similar to the one below.

3 - Sample RI Group Exemption Confirmation.pdf

Prepared by Taylor Lee, CPA

Last updated July 8, 2021

This is not tax or legal advice - consult with a CPA or other tax professional for guidance pertaining to the specific circumstances of your club.