US tax-free status sought

The wheels are in motion to convert the Kiwanis family’s United States tax status from that of a 501(c)(4) to a 501(c)(3) organization. If approved by the (US) Internal Revenue Service (IRS), the change will have significant impacts on US clubs and members, including:

•  A portion of member dues would be tax-deductible.

•  Clubs would become charitable organizations, making them eligible to receive charitable, tax-deductible contributions from individuals, organizations, and businesses.

•  Clubs would be eligible for nonprofit postage rates and other vendor discounts.

•  Clubs would become eligible for grants from other 501(c)(3) organizations.

•  Clubs may be exempt from state sales tax.

Before any of these benefits can be realized, though, Kiwanis International’s application for the 501(c)(3) tax status must be approved by the IRS. In the meantime, Kiwanis International is distributing information to clubs.