Documentation
To ensure that we are in compliance with rules governing public foundations the Washington County Community Foundation (BACF) needs to receive documentation from all Washington County non-profit organizations. We, as a public foundation, can only grant or give money to organizations that have received an official 501(c)(3) designation from the federal government. The BACF must have in its possession copies of the 501(c)(3) letter of determination from the Internal Revenue Service for any group that wishes to receive funds from the Foundation, or for whom the Foundation might receive donations from the public designated for that organization. Non-profit or tax-exempt status granted by the state, tax-id certificates, or IRS employee identification certificates are not sufficient documentation. A copy of a 501(c)(3) letter of determination from the IRS is required
Certain exceptions exist. Churches are not required to file an application for recognition of exemption from federal income tax with the Internal Revenue Service. Nonetheless, many churches are covered by group exemption rulings obtained by their convention or denomination, and many churches not covered by such rulings have obtained their own determination letters. If your church has such documentation, please provide it to the BACF for our records.
Separate charitable organizations that are closely affiliated with a church and derive their financial support primarily from within the church are also not required to file an application for recognition of exemption. These “integrated auxiliaries” include men’s or women’s organizations, seminaries, mission societies and youth groups that are closely affiliated with a church, even if they do not derive their financial support primarily from the church. However, affiliated entities that have a broader range of income sources, such as church-related hospitals and nursing homes, are not considered integrated auxiliaries and are generally required to secure a determination letter from the IRS. To further elaborate, the more a group includes non-church members, the more likely it is to need to be separately organized and obtain its own exemption. For any group with a church affiliation the BACF will require a letter from the church listing all if its “integrated auxiliaries” and “affiliated entities.” Affiliated entities will need to provide a 501(c)(3) letter of determination from the IRS.
The BACF can give funds to government entities for projects that are for a public purpose. No 501(c)(3) documentation from the governmental entity is needed for these projects.
Educational institutions, including preschools, are eligible for tax exemption but don’t automatically have it unless they have applied and received a determination letter. These types of groups will need to provide a 501(c)(3) letter of determination from the IRS to the BACF.
For fire and rescue departments we will need to know how the group is organized. If it is a government entity, documentation to support that relationship will need to be provided. If it has a 501(c)(3) letter of determination, please provide that. If it is organized as a 501(c)(4) (social welfare organization) the Foundation will only be able to give money to the group for specific charitable purposes, such as the purchase of equipment for the department’s use, not for social functions.
If your organization does not currently have an official 501(c)(3) designation, check with your national organization (if applicable) to see if the national organization can provide a copy of a group exemption letter from the federal government for their local chapters along with their national 501(c)(3) letter of determination. If no such group exemption letter exists, then the BACF will need to give donations to the national organization and ask that they be passed on to the local chapter. In order to do this, the BACF must receive a copy of the national organization’s 501(c)(3) letter of determination as well as their mailing address for donations.
If your group does not have a 501(c)(3) designation, but provides support to a 501(c)(3) organization, such as a school, you should contact the organization that your support to see if they would be willing to receive and administer funds on your group’s behalf. The BACF will need to receive a letter from the 501(c)(3) organization stating their acceptance of such a relationship and a copy of their 501(c)(3) letter of determination for our records.
Types of information to be provided to the BACF:
A) A 501(c)(3) letter of determination for your organization. If the name and address on the 501(c)(3) letter does not closely match your organization’s information, a letter must also be included from the organization that has been issued the 501(c)(3) explaining their relationship with your group and verifying your group’s legal use of their 501(c)(3) determination.
B) A letter from a church listing all if its integrated auxiliaries and affiliated entities.
C) A school’s 501(c)(3) letter of determination plus a listing of groups that provide support for the school for whom the school would be willing to receive and administer funds on their behalf.
D) A letter from a governmental entity listing the public projects it manages.
E) A national organization’s 501(c)(3) letter of determination plus a copy of a group exemption letter from the federal government for their local chapters.
F) A national organization’s 501(c)(3) letter of determination plus their mailing address for receipt of donations at the national level to be passed on to the local level.