PCBL Pennsylvania Citizens for Better Libraries

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Tax Exempt Information

    Check-list for Applying for Group Tax Exemption from PCBL

    1. Properly filled-out Articles of Association. This is the document by which the IRS verifies that you are entitled to fall under PCBL's Group 501(c)3 Tax Exemption.
    2. Copy of your governing document which includes the IRS required wording.
    3. Copy of the minutes of the meeting when your group officially voted to become an affiliate member of PCBL.
    4. Copy of your most recent financial statement (quarterly, monthly, or annual)
    5. Application for Organizational Membership in PCBL
    6. Your Friends group check for $70 to cover Affiliate Membership for the calendar year.

    Application Procedure for a Local "Friends of the Library" Group to Obtain 501(c)3 Tax Exemption Status Under the IRS Approved Group Tax Exemption of the Pennsylvania Citizens for Better Libraries ("PCBL")

    The application process consists of submitting the following six documents. If each step is followed exactly, the process is quite simple.

    1. APPLICATION TO BECOME AN AFFILIATE MEMBER OF PCBL: This form should be filled out completely. Your local Friends group will need to obtain an Employer Identification Number ("EIN") from the IRS. The form for obtaining this number is called "SS-4." The Library's accountant or attorney can help you obtain the form and fill it out. The EIN is like a Social Security number for organizations or corporations. If you don't already have one, it may take two or three weeks to get one from the IRS.

      The rest of the Affiliate Application is self-explanatory. Sign and date where indicated.

    2. COPY OF YOUR GOVERNING DOCUMENT: You need not be incorporated but you should have some kind of simple set of by-laws telling how you operate, what your officers are, how they get elected, etc.

      IMPORTANT! The IRS requires that all affiliating local Friends groups have the Following wording in their governing documents: See attachment

      Please make sure that this wording appears in your governing document. Highlight it with a colored marking pen for quick inspection.

    3. COPY OF THE MNUTES IN WHICH YOUR GROUP VOTES TO BECOME AN AFFILIATE MEMBER OF PCBL.
    4. COPY OF YOUR MOST RECENT FINANCIAL STATEMENT. After acceptance as an Affiliate Member of PCBL, you will be required to submit to PCBL by no later than February 15 of the year following a year-end financial statement. That statement, essentially showing only your gross revenues and expenses, is necessary for PCBL's filing of a consolidated Form 990 to the IRS. Your revenues and expenses will be lumped together with all of the other Affiliate Friends groups, so that no single group's finances will ever be shown. The format of this statement will be sent to you with the acceptance notice.
    5. APPLICATION FOR ORGANIZATION MEMBERSHIP IN PCBL
    6. COVER SHEET CHECKING OFF THE ABOVE ENCLOSURES
    7. A CHECK FOR $70 TO COVER AFFILIATE MEMBERSHIP FOR THE CALENDAR YEAR.

    The entire packet of documents should be mailed to:

    Carolyn Pfeifer, Executive Secretary
    PCBL
    47 Gale Road
    Camp Hill PA 17011

    After admission into Affiliate Membership, you will receive notice of your tax exempt status, along with copies of the appropriate IRS determination letters, a format to follow when sending in your year-end financial statement, and a Pennsylvania Department of Revenue Certificate of Sales Tax Exemption which you may use in the purchase of supplies, etc.

    IMPORTANT: Affiliate Membership in PCBL does not mean that PCBL will in any way govern or interfere in your local Friends activities. You will continue to operate as you always have, electing your own officers, deciding on your own events, and making your own financial decisions. Your only obligation to PCBL is to act in concert with PCBL's mission of advocacy for libraries and to submit the annual financial statement, along with your annual Affiliate dues of $70. Failure to abide by these requirements could result in disqualification of your tax-exempt status.

    EIN 23-2096799

    ALL INFORMATION SHOULD BE SUBMITTED OVER THE SIGNATURE OF AN INDIVIDUAL HAVING AUTHORITY TO ACT ON BEHALF OF THE ORGANIZATION.

    Required language for organizing documents

    "This corporation is organized and operated exclusively for charitable purposes within the meaning of section 501(c)(3) of the Internal Revenue Code."

    No part of the net earnings of the organization shall inure to the benefit of, or be distributable to its members, trustees, officers or other private persons. No substantial part of the activities of the organization shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the organization shall.not participate in or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office.

    "Notwithstanding any other provision of these Articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law) or (b) by a corporation contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law)."

    "Upon winding up and dissolution of this corporation, after paying or adequately providing for the debts and obligations of the corporation, the remaining assets shall be distributed to a non?profit fund, foundation, or corporation which is organized and operated exclusively for charitable, educational, religious, and/or scientific purposes and which has established its tax exempt status under section 501(c)(3) of the Internal Revenue Code."

    NOTE: ORGANIZING DOCUMENTS OF (UNICORPORATED) ASSOCIATIONS MUST BE EXECUTED BY AT LEAST TWO INDIVIDUALS TO BE VALID.

    ARTICLES OF ASSOCIATION

    This document is also available in Adobe Acrobat (PDF) format. You will need the free Adobe Acrobat Reader to view and print this file.

    These Articles of Association, dated the ____ day of ______________, by and between ________________________________, EIN (hereinafter "Affiliate") with Offices at _______________________ and Pennsylvania Citizens for Better Libraries, a Pennsylvania Non-Profit Corporation, with offices at 47 Gale Road,Camp Hill, Pennsylvania 17011 (hereinafter "P.C.B.L.").

    WHEREAS, P.C.B.L. on June 28, 1999 received from the Internal Revenue Service the formal exemption from Federal Income Tax under §501(a) of the Internal Revenue Code as an organization described in §501(c)(3); and

    WHEREAS, P.C.B.L. was also formerly determined to not be a private foundation within the meaning of §509(a) of the Internal Revenue Code, as an organization described in §509(a)(2); and

    WHEREAS, as the result of the above determination by the Internal Revenue Service treating P.C.B.L. as a §501(c)(3) organization Affiliate desires to enter into these Articles of Association in order to qualify as a member under the group exemption letter provisions of the Internal Revenue Code and regulations on a group basis, as an affiliated organization; and

    WHEREAS, affiliate intends to execute these Articles of Association in order to obtain the income tax benefits under the group exemption pursuant to §501(c) as an affiliated organization of P.C.B.L.

    NOW THEREFORE, intending to be legally bound hereby, the parties hereto by their authorized officers hereby execute these Articles of Association this ____ day of _____________.

    1. Affiliate hereby becomes an affiliated organization of P.C.B.L. and agrees to abide by its articles, mission statement and charitable purposes and all operative documents of P.C.B.L. as they may be amended from time to time.

    2. Affiliate hereby affirms it is eligible to qualify for exemption under the same paragraph of § 501 (c) of the Internal Revenue Code as P.C.B.L. and that to the best knowledge and belief of its officers it is not a private foundation within the meaning of §501(a) of the Internal Revenue Code.

    3. Affiliate hereby affirms that it is on the same accounting period as P.C.B.L. and will, within 60 days of the end of each of its annual accounting periods provide to the Treasurer of P.C.B.L. all income, disbursements and receipts of the Affiliate for the applicable twelve (12) month reporting period.

    4. Affiliate affirms that it has been created (more than/less than) fifteen months from the date hereof and agrees to be recognized as exempt from Federal income tax under the §501(a) only from the date of submission of the group exemption application.

    5. Affiliates' officers affirm that to their best knowledge and belief, that its charitable purposes and activities are as stated in these Articles of Association and the articles, mission statement and by-laws of P.C.B.L.

    signed this _____ day of _____________, by the authorized officers of Affiliate and P.C.B.L.

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