4-H is a community of young people, across America, learning leadership, citizenship, and life skills.

Weekly 4-H Update

Communications >> 4-H Update >>Volume 12, Number 25....................................... August 8, 2008

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IRS Tax Exempt Update

Please communicate to your chartered 4-H clubs and qualified affiliate groups earning less than $25,000 that there will be no penalties for those who do not file an ePostcard in 2008. Those earning more than $25,000 will continue to be subject to the 990 requirements for filing. We anticipate having more details from the IRS when they have completed processing the database.

Chartered 4-H clubs and qualified affiliated groups under GEN 2704 should be contacting the State 4-H Office for all tax exempt issues and not National 4-H Headquarters or the IRS. The IRS has requested that any information and direction be provided from the state office to National 4-H Headquarters as the parent organization. National 4-H Headquarters then has the responsibility to provide updates, assistance, and respond to questions from State 4-H offices. Having qualified subsidiaries come through the State 4-H office ensures that at the federal level, we are dealing with duly authorized 4-H groups, and that these groups are under the control and guidance of the Extension program- as well as ensuring that they are receiving consistent responses.

For all issues about status under GEN 2704, whether the group is requesting an EIN (SS-4 form) or inclusion under GEN 2704, or questions related to filing requirements, determination letters, or general status questions, all state and local groups should start with the State 4-H office.

Guidance provided for 4-H tax exempt status in the 1993 4-H Tax Exempt Guidance booklet (or previous versions) and the previously used AKirby@ letter dated from 1973 which served as a determination letter in the past, are no longer in effect and should be removed from county websites and/or discarded from your files.

Last year, we began the process of clarifying the 4-H entities that were authorized for inclusion under the national 4-H tax exempt status (GEN 2704). This was in response to questions from the IRS regarding authorized 4-H subsidiaries under the exemption of the national 4-H organization, and our system=s ability to communicate and enforce new filing requirements which would impact subsidiary groups.

In March 2008, National 4-H Headquarters forwarded to the IRS the listings of all authorized 4 H entities and has been waiting for the IRS to finish updating the list. The IRS has encountered delays in completing the processing of our lists for several reasons including: 1) there are far more entities requesting inclusion as subsidiaries than the IRS anticipated; 2) there continues to be significant errors with Employee Identification Numbers (EIN) listed for thousands of the 4-H entities certified; 3) the IRS is questioning the inclusion of some affiliated organizations which typically are considered independent organizations rather than program groups; and 4) there are questions on both the part of the IRS and National 4-H Headquarters regarding which requirements apply to 4-H, given that 4-H is a unique entity unlike any other organization.

The IRS is working to both clarify the actual tax exempt status for 4-H, and to identify ways to coordinate the lists of 4-H entities more efficiently and effectively in the future. In the meantime, we can anticipate further delays with the existing data set. Since our current ruling dates back to the 1970=s and was based on a 1946 ruling that referenced the Internal Revenue Code of 1939, much of which is no longer in current law, regulations, or records, National 4-H Headquarters has requested a new ruling from the IRS. Our unique status has caused much confusion in our system - as volunteers and others mistakenly assume that either 4-H is a 501(c)3 organization or it=s just a governmental entity - neither of which is true from an IRS perspective. Local 4-H representatives have interpreted the tax code for either of these entities as being applicable to 4-H in their local situation which has meant some 4-H subsidiaries are not compliant with IRS expectations for our group. We anticipate that the Cooperative Extension System will continue to be subject to requirements to certify the lists of subsidiaries, and that all subsidiaries will be required to electronically file. However, 4-H entities may not be subject to other requirements of 501(c)3 entities.

Due to the delays in processing the 4-H listings for groups requesting inclusion, and the data cleaning that will need to take place to correct the EIN=s, National 4-H Headquarters has negotiated with the IRS that there will be no penalties for 4-H subsidiaries earning less than $25,000 who do not electronically file for the remainder of 2008.

We, and National 4-H Headquarters appreciate everything that you, your colleagues, and volunteers have done to meet the IRS= requirements and increase accountability at the national and state levels for those authorized groups under Cooperative Extension and raising money in the name of 4-H.

We will continue to keep you informed! ― Dale Leidheiser

WRLF 2010

New Mexico reports that they have finally signed the hotel contract for WRLF 2010! Please advertise the dates with your volunteers. WRLF 2010 will be March 11-14, 2010 at the Hyatt Hotel in Albuquerque. ― Dale Leidheiser

Positive Youth Development: How to engage youth in your programming to be more than just participants.

The Office of Suicide Prevention is pleased to announce its next web-based seminar, or webinar. Anne-Marie Braga will be the guest presenter. Anne-Marie is the Director of Adolescent Health Initiatives in the Child and Adolescent School Health Unit at the Colorado Department of Public Health and Environment. She has worked tirelessly on helping programs understand the positive role youth can play in prevention efforts.

You will learn from this webinar what positive youth development is - and what it is not. You will experience a real life example of promoting positive youth development through Anne-Marie's work with Colorado's Youth Partnership for Health, and will be ready to include youth in creative ways in decision-making and program implementation.

This webinar is for any organization - from state agencies to grass-roots nonprofits - who target, serve and strive to make the lives of young people better. I will forward log-in and logistical information as soon as I receive it, but in the mean time - Save the Date - August 20, 2008: 10:00 AM.

And, please forward this to any person or agency you feel will be interested.
― Dale Leidheiser

ATTENTION: Those with 4-H Shooting Sports Responsibilities

Time has come again for our State 4-H Shoot, and as many of know there are three events going on simultaneously on August 17, 2008. With that being said, we need all the help we can get with archery, air rifle/pistol and muzzleloader. We would like as many volunteers as possible on Friday, Aug. 15, to help set up ranges so they will be ready to go on Saturday and Sunday. That way we can set up air rifle/pistol Saturday afternoon and run a few relays on Saturday evening.

In Archery, we would like every county and range officer to be present at 7:30 a.m. on August 17, so that by 8:00 a.m. the kids will be on the range. Remember, a scorer for every youth that comes to shoot from your county must be present.

Thank you for your time and volunteering. ― Tom Vetter, Archery Superintendant

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I want to thank Tom for this timely message! We are always in need of help at the State 4-H Shoot ... without volunteers like YOU we would not be able to conduct the State Shoot at all!! I've set up a helper form (link below) where you can leave Holli Campbell (our 2008 Overall Shoot Superintendent) information about how you can help us out at the State 4-H Shoot. In advance, on behalf of the Colorado 4-H Leadership Team and Jim Hamilton Shooting Sports Program Coordinator, I want to THANK YOU for volunteering and assisting us!

― Perry Brewer

2008 State 4-H Shoot Helper Form

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Updated Friday, August 08, 2008.