No word yet about 501c3 status

The United States Internal Revenue Service (IRS) is reviewing applications to reclassify tax status for Kiwanis International, Circle K International, and Key Club International. If approved, the nonprofit status would change from 501c4 to 501c3.

The Kiwanis International application was submitted in May 2005, and this past February, the International Office replied to an IRS request for clarification and additional documentation. Circle K and Key Club’s applications were delivered to the IRS in June 2005.

“All indications are that the process is going well,” reports Kiwanis International Interim Executive Director Jeff Oatess.

If Kiwanis’ application is approved, Kiwanis International and the 15 districts included in the original group-exemption letter will be reclassified as 501c3, effective October 1, 2005.

If Circle K and Key Club’s applications are approved, the International organizations will be reclassified as 501c3 effective February 7, 2006.

Kiwanis, Circle K, and Key Club districts not included with the original applications can receive 501c3 reclassification effective October 1, 2006, by joining the next group-exemption submission, provided Kiwanis International receives the appropriate amended articles of incorporation and bylaws before the effective date.

To prepare for the possible change, clubs are advised to review their bylaws and articles of incorporation, but they should not take any official action until the IRS has ruled on the Kiwanis International application. Kiwanis International will notify clubs upon receiving the IRS decision.