Attention U.S. clubs: Quota International has received from the Internal Revenue Service "group exemption" under Section 501(c)(3) of the U.S. Tax Code for our Fellowship and Service Fund, now known as the We Share Foundation. What this means is that your club can obtain tax-exempt status for your charitable activities through this group exemption. The benefit of doing so is that contributions to your club for charitable activities are generally deductible for federal income, gift, and estate tax purposes.

If your club is interested in setting up a separate legal entity for your charitable work, you now can set up a trust and obtain tax-exempt status as a Section 
501(c)(3) organization for that trust through Quota's group exemption.

To get started, first obtain a set of guidelines from the Quota International Office. You will find this information in the Club President's Guide to Quota International, or send an e-mail stating the publication name and your address to staff@quota.org.

Here is a list of steps that you will need to follow to set up your club's charitable trust. (These are fully explained in the printed guidelines.)

1. Review the process to establish a trust with your club's board of directors and the trust agreement provided; decide with your club if you would like to establish a trust.
2. Have the board of trustees of your new trust (your board of directors) sign the trust agreement.
3. Apply for an EIN from the Internal Revenue Service using the SS-4 form and instructions provided.
4. Once you have received your EIN, set up a bank account for your trust with a minimum of $10.
5. Outline your club's service objectives in a document to be kept with the trust agreement to guide the board of trustees in making decisions about your club's service activities. (The activities of your trust must be "charitable" as defined by the IRS.)
6. Send to Quota International a copy of the trust agreement signed by your board of trustees along with your completed form authorizing the Quota International Fellowship and Service Fund to apply for group exemption on behalf of your trust.
7. Contact your state tax department to determine if you must file an application for state income tax exemption.
8. Contact your state attorney general to determine if you must register your trust with your state as a charitable trust.
9. Refer to the list of states provided in the guidelines to determine if you must register with the state to solicit charitable contributions.
10. Contact your county or municipal government to determine if you must register your trust to solicit funds.
11. Begin promoting your trust as being tax-exempt!
12. At the end of your fiscal year (April 30), determine if your trust must file Form 990-EZ or Form 990 with the IRS. If you are required to file one of these forms, you must also file Schedule A.

Quota International staff will notify you when we receive your request for your trust's inclusion in Quota's group exemption. We will forward to you a copy of the Quota International Fellowship and Service Fund group exemption letter and a copy of the letter applying for group exemption upon approval of your inclusion in Quota's group exemption.

Questions? Please contact Christy Herz at the Quota International Office at christy@quota.org or via telephone at (202) 331-9694.