Small change requested for IRS application for 501c3 tax status
Two years ago Kenmore Community Club members ratified a new constitution that clarified its mission as a community service organization supporting and growing educational, cultural and recreational opportunities, and building our community through participation, engagement and volunteerism in support of Kenmore's non-profits, businesses, civic, and educational organizations.
With that more charitable orientation the club applied to the Internal Revenue Service to change its tax status from a 501c4 non-profit to a 501c3 non-profit. This would allow the club to accept tax-deductible donations in support of its mission.
That application was filed last October, and in May, the IRS asked for a small wording change in our mission statement to specify that all activities of the club (e.g. fundraising, charitable giving, community programs) would conform to the 501c3 statutes. As well, they asked us to specify that if the Club is ever dissolved, all assets would only go to other 501c3 organizations.
To meet these requirements, the Kenmore Community Club Board of Directors voted at its May 25 regular board meeting to approve sending the small revisions to the constitution's mission statement and dissolution article to Club members for their vote, as required by the constitution.
Original mission statement:
The Club is organized exclusively for charitable and educational purposes, under section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code.
The revision reads:
The Club is organized exclusively for charitable and educational purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations described under section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code.
Under Article XI Dissolution of the Kenmore Club
The original read:
Upon dissolution of the Kenmore Community Club, and after payment of all debts, and pursuant to the laws of the State of Washington, any remaining assets are to be given to a particular civic, religious, or charitable organization, selected at the time of dissolution and having a similar non- profit status as the Club.
The revision reads:
Upon dissolution of the Kenmore Community Club, assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose.
Members who attend the June 8, 2022 potluck will be asked to vote for the revised constitution. Two-thirds of the members present will need to vote for the revision to be approved. A copy of the revision being added to the constitution will be sent by email to all members in good standing ahead of the potluck. We encourage all such members to attend the potluck and cast your vote.