Creating a Foundation

If your club wants to create a foundation, there are specific steps you need to follow. The process includes applications to Kiwanis Internaional, to the IRS, and to the New York State Department of State.

The process is all done online and can be done by anyone, although if you have an attorney in your club it may be wise to consult him/her. The entire process can take 4-6 months to complete, mainly due to processing time at IRS and the state Department of State. At present the filing fees total $375.

Here are the steps:

1. Kiwanis International has a document detailing the steps a club must take to create a club foundation:

   1. Club drafts the proposed Certificate of Incorporation and sends it to Kiwanis International for approval.
   2. Kiwanis International approves submission of Certificate of Incorporation.
   3. Club sends Certificate of Incorporation to the NYS Department of State. (There is a $75 filing fee.)
   4. NYS reviews and approves the Certificate of Incorporation.
   5. For exemption from state and local sales taxes, the foundation must submit Form ST-119.2, Application for Exempt Organization Certificate (two pages, no fee). Information and forms at https://www.tax.ny.gov/bus/st/exempt.htm.
2. Apply to the IRS for an Employer Identification Number. This is free and can be completed in a matter of minutes.
3. File an application with the IRS to become a 501(c)3. Use Form 1023 (30 pages) or Form 1023-EZ (3 pages) which can be found at IRS Forms. To pay the application fee, you have to register at pay.gov and pay electronically. Form 1023-EZ is completed online and requires a $275 fee.
4. File a Registration Statement (CHAR410) with the New York State Charities Bureau. Requires a $25 fee. See https://www.charitiesnys.com/charindex_new.html#filing for forms and instructions.

Critical: All paperwork will require contact information such as a name and address, and maybe a password. In some cases, a physical address is required while others allow the use of a Post Office box. Make sure the Club Officers all know what information is used, and who does what paperwork, and when. This information will need to be updated as officers and responsibilities change. If not, you may lose your 501(c)(4) and/or 501(c)(3) status, if the IRS loses contact with you!

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to improving the world one child and one community at a time.