A person plays keyboard in a music workshop.
Traditional American Dance & Music Society; photo courtesy of Virginia Varland.
Country Dance & Song Society > Affiliates > Nonprofit Exemption

Nonprofit Exemption

Federal nonprofit tax exempt (501(c)(3)) status is available for CDSS Affiliates in the US who meet certain guidelines. You must apply to receive this benefit. The initial application fee is $125, with an annual renewal fee of $75 (in addition to affiliation dues).

 

 

Benefits of nonprofit status

  • Groups that are recognized by the Internal Revenue Service as exempt under section 501(c)(3) of the Internal Revenue Code enjoy the following benefits, among others: 

      • no Federal tax on income earned by or contributed to the group in furtherance of its exempt purposes; 
      • federally-recognized exemption is helpful when you apply for state exemption; 
      • eligibility to receive donations that are tax deductible by their donors as charitable contributions;
      • special reduced postal rates for bulk mailings (requires an application to the US Postal Service);
      • eligibility for grants by public agencies and private charitable foundations;
      • in some facilities, eligibility to rent space at below-market rates; and
      • eligibility for services of arts councils and other service organizations.

How does it work?

Federal nonprofit tax exempt (501(c)(3)) status is available for CDSS Affiliates in the US who meet certain guidelines. You must apply to receive this benefit. The initial application fee is $125, with an annual renewal fee of $75 (in addition to affiliation dues).

CDSS Affiliates may, of course, apply to the IRS for non-profit exemption independently of CDSS by filing Form 1023. The initial organizational requirements are essentially the same, but joining the CDSS group exemption is easier, quicker, and cheaper. 

In either case, it is, however, a serious undertaking: in this process, you will warrant that your organization qualifies as a charitable organization and you undertake to complete annual reporting requirements to maintain this status. Being part of the CDSS Group Exemption does not exempt your organization from the requirements of any applicable agencies, such as the IRS, INS, Department of Labor or other federal or state entities with jurisdiction over nonprofit organizations and operations.

You will have requirements to your state offices and the federal government (such as income tax filings) because you are considered to be your own, freestanding organization for all of these purposes. 

How can our group prepare to apply for non-profit status?

In order to come under the CDSS group exemption, an Affiliate must do the following: 

  • maintain its CDSS Affiliation as provided by the CDSS bylaws, and comply with any subsequent instructions from CDSS; 
  • obtain an Employer Identification Number (EIN) by submitting Form SS-4 to the IRS. 
  • have an established organizational structure, either as a nonprofit corporation or an unincorporated association, with its own articles of incorporation or constitution and bylaws consistent with the purposes of CDSS as stated in our Articles of Organization. A copy of your organizing document and bylaws including any amendments currently in effect must be submitted to CDSS (see sample bylaws below). At a minimum these documents must address compliance with applicable laws, organizational leadership (how it is elected or appointed, and how it is maintained), the financials of the organization, and other issues of nonprofit structure. 
    • the following or substantially similar provisions should be included in the group’s organizing document or bylaws: 
      • No part of the organization’s assets or net earnings may inure to the benefit of any individual. This does not preclude the payment of reasonable amounts for goods or services provided to the organization.
      • Upon dissolution, the assets of the organization shall be distributed to another nonprofit organization that is exempt under section 501(c)3 of the Internal Revenue Code.
      • The organization shall not, as a substantial part of its activities, carry on propaganda or otherwise attempt to influence legislation, except to the extent permitted by section 501(h) of the Internal Revenue Code, nor shall it participate to any extent in any political campaign for or against any candidate for public office.
      • It is intended that the organization shall be entitled to exemption from Federal income tax under section 501(c)(3) of the Internal Revenue Code and shall not be a private foundation as described in section 501(a) of the Code.
      • The organization subscribes to the general purposes of The Country Dance and Song Society, Inc.; 
  • under IRS regulations, CDSS Affiliates under our group exemption must be “subject to (CDSS’s) general supervision or control”. We consider this guideline to be met if a group agrees to subscribe to the general purposes of CDSS and submits an annual financial report to us; 
  • designate a treasurer responsible for the accuracy of the group’s financial statements. See “requirements for annual filing” below; 
  • submit a completed Application for Inclusion in the CDSS Group Exemption, signed by a duly authorized officer of the group, and application fee of $125.

What about state non-profit status? 

CDSS serves Affiliates across North America and is proud to offer federal non-profit status under our group exemption to our US affiliates. CDSS is not currently in the position to provide guidance or assistance in obtaining or maintaining individual state nonprofit status.

Sample documents for applying for nonprofit exemption

Submitting an application

Upon receipt of your Application for Inclusion, application fee of $125 and if all other guidelines are met, CDSS will furnish your organization with copies of its exemption determination letters, and will include your organization in its next annual group exemption update letter to the IRS. 

For more information on tax exemption, see IRS Publication 557, Tax Exempt Status for Your Organization, or consult an attorney who is experienced in tax exemption for nonprofit organizations. If you have questions about joining the CDSS group exemption, email Matt Reyna, our Affiliate Coordinator at [email protected].

Apply for nonprofit status

Requirements for annual filing

All affiliates under our group exemption are their own financial entities and must file with the IRS and CDSS annually, regardless of size or annual income. Failure to do so can result in having your 501(c)(3) status automatically revoked by the IRS. CDSS does not file a group return.

  • Groups with gross receipts under $50,000 can file the simple, quick, 990 e-Postcard. Additionally, you must send a financial report to CDSS that shows income and expenses (profit and loss statement) and total assets and liabilities (balance sheet). If you have a format or program you use for this, it’s fine to send us a report that way. Or, you can use the CDSS template.
  • Groups with gross receipts above $50,000 must file a full 990. This has sufficient information to satisfy CDSS’s requirements and can simply be forwarded to us.

This financial reporting is due to CDSS on the same schedule as it must be reported to the IRS: five months after the end of your financial year.

For information on how to file with the IRS, please visit their website. Here are some resources to help you file your IRS Form 990:

All documents should be emailed to [email protected].

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