A Benefit of CGCI Membership....

501(c)(3) Nonprofit Status for Your Garden Club
                  Under the CGCI Group Exemption Program

The application made by California Garden Clubs, Inc. (CGCI) for a group exemption letter recognizing subordinate clubs as organizations of the type described in section 501(c)(3) of the Internal Revenue Code was approved by the Internal Revenue Service on November 15, 2006. California Garden Clubs, Inc. is thereby authorized by the Internal Revenue Service to include subordinate clubs, who have met all requirements set forth by the Internal Revenue Service under section 501(c)(3) of the code, to be included in the California Garden Clubs, Inc. Group Exemption.

Donations made to clubs who are included in the CGCI Group Exemption may be deducted by donors as charitable contributions on their income tax returns.  (Bequests, legacies, devises, transfers, or gifts to are deductible for federal estate and gift tax purposes if they meet the applicable provisions of section 2055, 2106 and 2522 of the Code.)

NOTE: If your club is already approved and on the Group Exemption list, all you need
to do is renew each year. Click here- "RENEWAL" for more information.

 

 

What your club needs to be included in the
CGCI 501(c)(3) Group Exemption

 

According to the IRS, to qualify, your club must:

• be affiliated with, and carry on the mission of CGCI.
  If your club is a member of CGCI, this is already true. To have been ratified as a member of CGCI, your club must have one or more objectives in common.
• be subject to, and participate in, CGCI’s general supervision and control.
  As a member of CGCI, this is already true. CGCI is an affiliation of clubs which is governed by the representatives of member clubs who vote at an annual convention each year to elect the directors of CGCI and to decide issues.
• be exempt under the same paragraph of IRC 501(c)3 as CGCI
  In other words, your club must qualify for tax exemption as an educational and charitable organization, having objectives and activities that are the same as those of CGCI.  The MAJORITY of activities must be educational. (Flower shows, speakers, tours and the like are all “educational” activities.)
•  have club bylaws, which include the required IRS language
  See an explanation of the language required by the IRS at 501c3language.htm
  
• have articles of association/affiliation mirror with CGCI.
  This is a form your club needs to read, discuss and agree to.
• use the same accounting period as CGCI.
  (July 1– June 30)
• maintain a detailed description of the purposes and activities of your club, including the sources of receipts and the nature of expenditures.
  This description of activities shows that the majority of your clubs activities are educational.
• Renew this information with CGCI by MARCH 1 of each year.
  
• have an authorized officer of your club give permission on the appropriate form to CGCI IN WRITING, each year, that states your club wants to be included in the CGCI group exemption.

For instructions and the form needed to apply, click here.

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