Lions District 2S-3
Incorporation Study
(DRAFT – April 5, 2006)
Chairman: Lion Alan W. Ford, CPA
Phone: 512-217-5550 Fax: 512-321-4132
Study Objectives
This study was initially
undertaken at the request of District 2S-3 Governor Dennis
· To evaluate the possible use of one or more incorporated entities for carrying on certain Lions charitable activities that involve the entire District (or, perhaps, a group of clubs within the District).
· To identify the basic requirements and procedures for forming such a corporation (or corporations), if needed.
· To identify organizational factors that would need to be taken into consideration.
A by-product of this study has been the compilation of a considerable body of information on the following topics:
· State and Federal tax issues that may arise in the operation of Lions Clubs and Districts, or corporations they may control.
· Whether it is necessary or desirable for an individual Lions Club to incorporate itself.
· NOTE: I am available for consultation with any club or group of clubs with issues in these areas. Please feel free to call or e-mail with any questions you may have.
Note:
Any representations as to the legal effect of any form of organization
are generalizations based on my own research and informal consultation with an
attorney, but should not be considered legal advice. Any creation or reorganization of a legal entity should be
implemented with documents prepared or reviewed by an attorney.
Resource Material
Items will be posted here as they are prepared or become available. Where possible, links to online documents at their original source are supplied in lieu of document files.
Items currently available are as follows:
1) Material from Lions International
a) Letter regarding exemption from Federal income tax for Lions clubs and districts
i) IRS group exemption letter (1940 original)
ii) IRS group exemption letter (1972 update)
b) Letter regarding incorporation of Lions clubs
i) Advantages and disadvantages of club incorporation
ii) Sample articles of incorporation for a Lions club
c) Letter regarding formation of separate corporations by Lions clubs
i) Sample articles of incorporation for a Lions charitable corporation
ii) Criteria for use of Lions name and emblem by a legal entity
iii) Application for use of Lions name/emblem/mark
d) Memo to Lions clubs regarding IRS Form 990/990EZ
e) Sample IRS Form 990EZ for Lions club
f) Memo to Lions clubs regarding Federal tax on unrelated business income
g) Memo to Lions clubs regarding disclosure of non-deductibility of contributions
COMING SOON:
2) Texas Secretary of State information
a)
Filing Guide for Nonprofit Corporations
c) SOS Form 202, Sample Articles of Incorporation for a nonprofit corporation
d) SOS Form 806, Fee Schedule
e)
3) Federal law and IRS materials
a) IRS Publication 557, Tax-Exempt Status for Your Organization
b) IRS Form 1023, Application for Recognition of Exemption
c) IRS Form 8718, User Fee for Exempt Organization Determination Request
d) IRS Publication 598, Unrelated Business Income
e) IRS Form SS-4, Application for Employer Identification Number (with instructions)
f)
4) Texas Comptroller tax information
a) TX CPA Publication 96-122, Exempt Organizations – Sales and Purchases
b) TX CPA Form AP-205 Application for Exemption from Sales Tax
c) TX CPA 01-3392 Sales & Use Tax Certificate
d) TX CPA Form 12-302 Hotel Occupancy Tax Exemption Certificate
e)
a) Texas Property Tax Code regarding nonprofit corporations
b) Travis County Appraisal District Application for Exemption
c)
6)
Third-p
a)
b)