All Kiwanis Club Secretaries should have received their "ominous letter of change" of reporting requirements for current Kiwanis year (2007-08). So, let's try to decipher the "good news".

All Not-For-Profit organizations (such as Kiwanis Clubs) with Gross Receipts (that is all money taken in before expenses are subtracted) of less than $25,000 are affected. Through this year, you did not have to file a Form 990 or 990-EZ. Beginning with this Kiwanis year, your club will have to file a Form 990-N electronic postcard regardless of the club's receipts. This applies to all 501(c)3 AND 501(c)4 organizations. This "Electronic Postcard" (990-N) needs to be filed by February 15th after the end of the Kiwanis year.

The electronic 990-N form will require you to provide the:

1. Legal name of your Kiwanis Club and/or Foundation
2. Any other name your Kiwanis Club and/or Foundation uses
3. The Club and/or Foundation's legal mailing address
4. The Club and/or Foundation's website address (URL) if there is one
5. The Club and/or Foundation's employer identification number (EIN)
6. The name and address of the Club and/or Foundation President(s)
7. Your Club and/or Foundation's Tax Year (always Oct. 1 to Sept. 30)
8. A statement verifying that your Club and/or Foundation's annual gross receipts are still less than $25,000.

The 990-N form can only be filed electronically. No special software is needed, but access to the Internet is necessary. The IRS expects organizations that do not have easy access to a computer to go to places such as their local library to file the e-postcard. The filing system is not yet ready to be used by the IRS. To register for an e-newsletter that will inform you when the new e-form is available, go to www.irs.gov/eo to sign up for Exempt Organization's free e-mail newsletter.

If you do not file the 990-N form for three (3) years, you risk losing your tax-exempt status! If your Kiwanis Club has lost its employer identification number (EIN), contact me as I have a list of numbers which have been issued to clubs and may have it for you. If yours is one of the clubs that never filed to get its own EIN, you must request one before June 30, 2008. The fastest and easiest way is to go to https://sa2.www4.irs.gov/modiein/individual/index.jsp. You can get an immediate response electronically or by mail in four weeks. The form SS4 can still be used, but it takes several weeks to receive a response. Visit www.irs.gov for more information.

In May 2005 Kiwanis International filed an application to the IRS for 501(c)3 status. Kiwanis currently is a 501(c)4. Both designations qualify as non-profit entities, but as a 501(c)4, your Kiwanis Club does not qualify for tax-deductible contributions for individuals and corporations. (Your club may have a separate 501(c)3 entity that you most likely have the identified as a foundation). This is an update of Kiwanis International's application to the IRS:

1. The applications have been forwarded with an agent's and supervisor's recommendations to the IRS Quality Review Department. Though no official communications have been received, this department reportedly will send Kiwanis International additional questions related to the original applications.
2. If that department denies 501(c)3 status, the application will proceed to Washington DC for another level of review.
3. If 501(c)3 tax reclassification is approved, the IRS wants a January 1, 2007 effective date, not October 1, 2007 as requested in the application. Kiwanis has responded that it will accept that change.

Incorporation of your Kiwanis Club is not really an option. All new clubs that are chartered agree that the club will be incorporated within one year of their charter. Why is this important? It provides a layer of protection of the individual officers and board members. We do live in an era of lawsuits.

It is not hard to become Incorporated and does not need to cost a lot of money. Yes, an attorney would be good to have do this for your club, however, you can easily go to the New York State website (Department of State, Division of Corporations) www.dos.state.ny.us. There you will find a blank Certificate of Incorporation (under Section 401 of the Not-For-Profit Corporation Law). Just fill it in with your Club's name, purpose for which your club is formed, the names and addresses of the initial directors and officers. Send that form with $75 payable to "Department of State" NYS Department of State Division of Corporations, Albany, NY 12231.

During the Montreal Kiwanis International Convention the delegates approved a bylaw that would reward those clubs that grew by 25 percent from September 30th of one year to September 30th of the following year. Clubs that achieved that growth would receive a credit or other payment for the International Dues for those new members over and above the club membership of the previous year. In January, Kiwanis International sent checks to the following clubs for achieving this criterion:

• Baldwinsville (Ontario)
• Fonda - Fultonville (Mohawk)
• Fordham, Bronx (Bronx Westchester South)
• Gouverneur (Saint Lawrence)
• Hamburg (Niagara Frontier South)
• Manhasset Port Washington (Long Island North)
• Mount Morris (Genesee)

What a terrific motivation to grow! We hope to report your club here next year! Just three caveats, be sure to get all your member adds and deletes into Indianapolis well BEFORE September 30th. Your club's dues billing must have been paid in full. Additionally, the credit or payment will be for ONLY Kiwanis International dues (currently $42) and only for the numbers of members at year's end that exceed the beginning of the year!

When you go to www.kiwanis.org you will find a brand new look. This is now the site that most people surfing the Web will see. The content is designed to explain to non-Kiwanians what we do as a group of volunteers. Lots of splash and neat stuff will be found on this page. However, to find the form downloads and reporting information you need to administer your clubs just click on "member resources" on the left menu and you will be taken to www.kiwanisone.org. This is the site that will give you all of the information and forms you need as Club Secretary, etc. They have also added some neat features and search functions that should help your club improve your members' experiences at meetings and projects.

If you have any questions at all, please do not hesitate to contact the District Office or me at ANY TIME!

Justin Underwood, NY District Secretary, 1-800-419-8898 or justinau@rochester.rr.com..