Tax Exempt Status of 4-H

Regarding Donations to 4-H:

All 4-H clubs and affiliated groups are classified by the IRS as "charitable." This means that contributions to 4-H are tax deductible for the donor. For details on what is and is not tax deductible, go to www.national4-hheadquarters.gov. Click on "Tax Exemption Information."

This classified is documented in a letter from the IRS to Mr. Edwin Kirby dated February 9, 1973. If asked for documentation, give the person making the request a copy of the letter to Mr. Kirby. Link to letter.www.ca.uky.edu/agcollege/4h/Friends/AboutGifts.htm

Regarding Income Taxes:

All 4-H clubs and affiliated groups are classified as "exempt from paying income tax" because they are described in section 501(c)(3) of the Internal Revenue Code of 1986. If gross receipts of the club or affiliated group are under $25,000, the club/group does not need to file an IRS Form 990. If the gross receipts of the club or group are over $25,000 for 3 or more years in a row, then the club/group must file an IRS Form 990 annually. The form must be filed by May 15th.

4-H organizations are classified as "other than private foundations," under section 509(a) of the Code because they are organizations described in section 170(b)(1)(A)(vi) of the Code.

All 4-H clubs and affiliated groups are classified by the IRS as "charitable." This means that contributions to 4-H are tax deductible for the donor.

All of the above classifications are documented in a letter from the IRS to Mr. Edwin Kirby dated February 9, 1973. If asked for documentation, give the person making the request a copy of the letter to Mr. Kirby. Link to letter.www.ca.uky.edu/agcollege/4h/Friends/AboutGifts.htm

Additional documentation is available in a USDA publication entitled "Tax-Exempt Status of 4-H Organizations Authorized to Use the 4-H Name and Emblem." It is available on the United States Department of Agriculture web site: www.national 4-hheadquarters.gov. Click on "Tax Exemption Information." Appendix A on page 12 of this publication contains a reprint of a letter to Mr. Edwin L. Kirby from the IRS.

Regarding taxes on goods sold by 4-H:

On January 7, 1998, the Kentucky legislature passed a bill stating that 4-H does not have to collect sales tax on items sold ( such as calendars, food booths, etc.) It is House Bill # 175, passed on January 7, 1998. We have a copy of the legislation which can be faxed to you.

98RS HB 175 amend KRS 139.497 to exempt sales made by non-profit educational youth programs affiliated with land grant university cooperative extension services from the sales and use tax; provide that the provisions of the Act will be effective for sales made after July 31, 1997.

Regarding taxes on goods purchased by 4-H:

4-H clubs and affiliated 4-H organization may apply for exemption from Kentucky sale and use taxes on goods purchased. To apply, complete the Kentucky Revenue Cabinet's Form 51A125. As documentation of 4-H's tax exempt status, attach a copy of the IRS letter to Mr. Edwin Kirby, dated February 9, 1973. The business where the purchase is being made will require that the exemption number issued by the KY Revenue Cabinet be provided when the purchase made.