Quota International — We Change Lives

Establishing a 501(c)(3) Charitable Foundation

Attention U.S. clubs: Quota International’s We Share Foundation has “group exemption” status under Section 501(c)(3) of the U.S. Internal Revenue Code. This is good news for your club! By establishing a foundation, your club has the opportunity to obtain tax-exempt status for its charitable activities through this group exemption. The benefit of doing so is that contributions to your foundation for charitable activities would generally be deductible for federal income, gift, and estate tax purposes.

There are several actions your club must take to create a 501(c)(3) foundation. These include the one-time filing of trust documents to set-up a charitable foundation as well as the ongoing maintenance of separate financial records and bank accounts for your new entity. Please review the process detailed in How to Establish a Charitable Foundation and discuss with your club members whether it is something you would like to do. The other documents needed to complete the process are also available here:

• How to Establish a Charitable Foundation*
• Checklist for Establishing a Charitable Foundation*
• Trust Agreement*
• Authorization Form to Include Your Foundation in the We Share Foundation’s Group Exemption Letter*
• Filing Requirements with Federal, State, and Local Government*

Upon receipt of your completed documents at the Quota International office, your foundation will be included in the We Share Foundation’s 501(c)(3) group exemption. We will forward to you a copy of the We Share Foundation group exemption letter for you to share with donors. Establishing a foundation and obtaining tax-exempt status will require some start-up work and annual maintenance on your club’s part, but Quota International staff is available to assist you along the way. Over fifty U.S. clubs are already enjoying the benefits a foundation provides, and we think your club will also find that the rewards will be well worth the effort! Please do not hesitate to contact Christy Herz at christy@quota.org or (202) 331-9694 should you have any questions or need further assistance.

*To view or print out this document, you will need Adobe Acrobat Reader. Go to Adobe’s Web site and download a free copy of Acrobat Reader.