4-H Clubs receive federal income tax exemption through a group exemption held by the Nebraska 4-H Foundation. This means that 4-H clubs are exempt from paying federal income tax on funds raised on behalf of 4 H, or to support educational programs; and donors can deduct contributions to 4-H clubs.
For a club to be included in the group exemption, it must meet these requirements:
- Be a chartered Nebraska 4-H Club (refer to above information)
- Have a constitution/bylaws (refer to above information)
- Have an IRS-issued Employer Identification Number. If a club handles finances, it must have its own EIN.
- Complete a Group Exemption Authorization Form.
To retain this status, clubs must annually:
- Submit a year-end financial report to the Extension office by January 31 to allow the Extension office to file an IRS Form 990-N by May 15 on behalf of your club.
- Maintain active status as a Nebraska 4-H club, which means having at least 5 members from at least 3 families enrolled in the club.
- Clubs will be excluded from exemption if failure to comply with the above.