tax exempt

[ManyHats]

Should we have a tax exempt number? Is that covered under the charter organization? Our state sales tax just went up. Most of the time I'm purchasing food so it doesn't matter. Every little bit helps...

[msnowman]

This may vary by Council and/or by state. Each fall, in our Kickoff packet we receive a copy of our tax exempt certificate. This is from Council, not from our Charter Org.

 

Of course this is only useful if any of us remember to bring it with us when we make Pack purchases, but it is there.

 

YiS

Michelle

[ManyHats]

To my knowledge we don't get anything like that. I did have to get a nonprofit letter from our charter organization in order to apply for a donation from a large company. It has a taxpayer identification number, but the tax exempt number is totally different, right?

[Gold Winger]

Usually. There's usually a Tax Exempt certificate or wallet card that your CO can give you a copy of. That is if they understand that you are part of their organization. We had to have a long chat with our CO to get a copy of their certificate.

[packsaddle]

If we'd just enact the Fair Tax none of this would be an issue.

[DYB-Mike]

Greetings!

 

Our Council directed our unit to use our Chartered Organizations tax exemption number when we applied for a grant. We did have to discuss the matter with our Chartered Organization but they quickly acquiesced.

 

My understanding is that a Pack or Troop is owned by the Chartered Organization. The Chartered Organization charters (contracts) with the BSA to run a scouting program and use the BSA name, forms, and so forth. Consequently, the Chartered Organizations exemption ID should be used by the Pack or Troop.

 

This seems to makes sense given the power the Chartered Organization has over the unit and that if the Chartered Organization decides not to renew the charter the unit ceases to exist unless it can find another organization that will take on its charter.

 

In Massachusetts the tax exemption number is the same as the federal taxpayer ID number

 

YIS

Mike

 

 

 

 

[Eamonn]

To be safe you should contact someone who works with taxes for a living. (Tax Attorney / Accountant.)

Many if not most Councils do not allow units to use their tax exempt numbers.

Some Chartering Organizations do.

Some units are covered by the 501(3)©.

If they have completed all the paperwork and paid all the fees (Here in PA we paid a little over $1,500.00)

We seen it as a worthwhile expense as we accept boats as donations.

To my way of thinking for most units here in PA it just isn't worth the time or the expense.

Ea.

[infoscouter]

I believe the kind of tax exemption ManyHats is asking about is a sales tax exemption. Sales taxes are state taxes and exemptions are governed by state law. In Minnesota, any Scout unit, club, etc. can apply for a sales tax exemption certificate, and use it when retail purchases are made for the benefit of the organization.

 

Some of the rest of you are discussing federal tax exempt status, which is governed by a different set of laws. These are the laws which determine, among other things, whether donations to your chartered organization on your behalf are deductible for federal income tax purposes.

 

So - two different kinds of exemptions for two different purposes. If you want to be exempt from sales taxes, check with your state sales and use tax division (or whatever they call it in your state).

[thebigguy]

The assets of a troop or pack are the legal property of the chartered organization. Agene this very state to state, but the majority of the time you would use the CO's number for sales tax exemption. In situations its best to check with the local council, as you may be expected to use theres.

[Beavah]

Yah, what infoscouter said, eh? Don't be confusing two different things:

 

1) Federal Employee ID number for an IRS 501©(3) organization - used for obtaining grants and the like.

 

2) State sales tax exemption certificate (with perhaps a state employer ID number) - used for not being charged sales tax when yeh copy the troop newsletter at Kinkos.

 

States are all over the place on how they handle this. In most cases, yeh should get your state certificate of exemption through your CO. It is my understandin' that some councils give units theirs. Probably not kosher, but unlikely anybody is gonna squalk.

 

Lots of times a merchant might take your word for it on the sales tax exemption, eh? Especially if they know you and the amount is small. Depends how your state handles enforcement.

 

Regardless, if your state offers a sales tax exemption, you should take it. That's what it's there for - to let you use more $ to support the kids, something your voters and legislature feels is important and worthwhile, eh?

 

Beavah

 

[Gold Winger]

"1) Federal Employee ID number for an IRS 501©(3) organization - used for obtaining grants and the like"

 

Not to mention the all important annual paperwork for tax evasion.

[Jeffrey H]

My Pack is chartered by a Church, a non-profit organization. Donations to our Pack are considered tax-exempt charitable contributions if they are given in either of these ways.

 

1) Donation is made payable to the Church and the funds are designated to the Pack.

 

2) Donation is made payable to our Council with the funds designated to the Pack.

 

The tax exemption number should either come from your non-profit charter organization or your local council depending on who is receiving the funds. Check with your local council for advice. You want to make sure you give the right advice to your supporters.

[Jeffrey H]

My Pack is chartered by a Church, a non-profit organization. Donations to our Pack are considered tax-exempt charitable contributions if they are given in either of these ways.

 

1) Donation is made payable to the Church and the funds are designated to the Pack.

 

2) Donation is made payable to our Council with the funds designated to the Pack.

 

The tax exemption number should either come from your non-profit charter organization or your local council depending on who is receiving the funds. Check with your local council for advice. You want to make sure you give the right advice to your supporters.

[Stosh]

Wisconsin situation:

 

Our Venturing Crew has it's own tax exempt number. The council set it up for us when we formed.

 

Stosh

[Stosh]

Wisconsin situation:

 

Our Venturing Crew has it's own tax exempt number. The council set it up for us when we formed.

 

Stosh