Donations to the Kenmore Club are now tax deductible, thanks to a new 501c3 tax status. That means volunteer hours by employees of some companies can receive monetary matches to the club for their volunteer hours donated to the Kenmore Community Club. In addition, cash donations for club programming are now tax deductible.
The landmark change follows two long years of effort that finally paid off as the Internal Revenue Service approved the Kenmore Community Club's application for 501c3 tax status in June, which allows the club to receive tax deductible donations.
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.
In October 2020, the Kenmore Community Club members voted to approve a new constitution. The primary revision of the new constitution was to reconcile the mission of the club to support the arts, education, civics, recreation and locally based human services organizations that promote the well-being of the community, with a 2009 revision that inserted a clause prohibiting the club from supporting policies and candidates for city laws and offices.
That clause meant the mission was at odds with its civic club 501c4 tax status. In other words while the mission was largely charitable in nature, its 501c4 status meant the club could not receive tax-deductible donations.
Once approved, the new constitution positioned the club to qualify for 501c3 tax status. Led by Vice President Omur Muhittinoglu, past President David Evans and Trustee Nick Freeman, who did the research into the constitutional changes needed and the drafting of the new constitution, the club filed its application for the tax status change in December 2021. In May the IRS responded with requests for some wording changes to the constitution, which were approved at the June 8, 2022 potluck.
Thanks to the tireless efforts of David Evans, and the changes approved by the membership last month, the IRS granted the club a change in tax status with a letter received in early June.
Now donations of time and money can be deducted on the donor's tax return, which will greatly facilitate fund-raising for the club's programming.