Financial Procedures

Federal and State Tax Information (This information is not to be construed as tax advice. Chapters should contact a tax professional or the IRS.)
CMAA and all of its chapters are 501(c)6 organizations and not eligible to be charitable organizations. Individuals and corporations donating monies to a chapter cannot claim that amount as a charitable donation.

Each chapter is covered under a group tax exemption filed annually by CMAA National with the IRS. This tax status exempts the chapters from paying income tax on the gross receipts reported each year to the IRS. This status does NOT exempt chapters from paying sales tax. It also does NOT exempt chapters from having to file an income tax statement every year with the IRS and the State of Incorporation.

When filing taxes yearly, each chapter refers to its individual EIN (Employer Identification Number) assigned by the IRS, which identifies the chapter just as a social security number identifies an individual. The Federal tax filing is due on the 15th day of the fifth month following the close of the chapter's fiscal year, i.e. May 15 if your chapter is on a calendar year fiscal cycle.

Chapters with gross receipts of less than $50,000 - File 990N e-Postcard
Access information from the IRS about the filing process here for the Annual Electronic Filing Requirement for Small Tax-Exempt Organizations.

Chapters with gross receipts between $50,000 and $200,000 and total assets of less than $500,000 - File 990-EZ Form or 990 Form
Access to the forms and instructions from the IRS are available here. CMAA does suggest that the chapters needing to file at this level consult with a tax professional.

Chapters with gross receipts of more than $200,000 or total assets of more than $500,000 - File 990 Form
Access to the forms and instructions from the IRS are available here. CMAA does suggest that the chapters needing to file at this level consult with a tax professional.

A request for state tax exemption status must be filed by each chapter in the State of its incorporation. The same EIN is also valid with each state government. In many states, the proof of Federal tax exemption status is sufficient to receive state tax exemption status, but other states do require specific action to acquire the tax exempt status. A list of states and their requirements is available here. Some states require a copy of CMAA's Group Tax Exemption Determination letter. If needed, the IRS 2011 Chapter Exempt Status Determination letter is available as proof of the chapter's Federal tax exempt status. Once the s\State tax exemption status is acquired, annual tax filings will need to be done by the chapter with the appropriate state as well as with the IRS.

The Unrelated Business Income Tax (UBIT) is a yearly tax on net income from commercial activity performed by associations and other organizations otherwise exempt from federal income taxation, including CMAA chapters. This tax is charged regardless of the chapter’s incorporated status. CMAA chapters’ activities are usually not considered to be “commercial” and, therefore, not subject to UBIT; the major exception to that is when chapters sell advertising in their newsletters and websites. This is entirely appropriate and a legitimate source of revenue. However, receipt of advertising income can trigger the UBIT reporting requirements and tax liability. More information about UBIT from the IRS is available here.

Assorted Tax Forms
Occasionally, chapters are asked to complete the IRS Form W-9 by a firm that is purchasing goods or services from the chapter, i.e. tickets or admission to events and programs. Oftentimes, firms and agencies will not make payment to the chapter without this form in its Accounts Payable files. You will need to use the chapter's EIN number on the form in place of the requested TIN number; the list of chapter EIN numbers is accessible here.

Chapters may be required to file an IRS Form 1099-MISC IRS Form 1099-MISC for various reasons, but primarily when services are purchased by the chapter from an independent consultant or contractor. It is similar to the Form W-2 used for employees and is submitted to both the service provider and the IRS. Instructions for Form 1099 can be located on the IRS website. The form must be ordered through the IRS and isn't available online; the link to the form is for informational purposes only.Financial Form Templates
For the chapters' use, a receipt template and an invoice template have been created.  Since both forms are templates, chapters need to alter them, inserting their own mailing address, phone, fax, Federal ID (EIN) number, and payment address into the header/footer areas of the documents.

Online Credit Card Payment
Several chapters are utilizing the services of outside vendors to provide online credit card payment and event registration by members. These services allow members to register and pay in advance online with a credit card for chapter events.  Although there is a cost to using these services, that cost can be added to the admission fees in order to recoup that outlay.

Acteva - www.acteva.com; provides registration and payment process. For more information, contact a salesperson (877-933-4730) or view the website.

Constant Contact - www.constantcontact.com; provides registration and payment process, broadcast mail management, promo flyer creation, survey tool. For more information, view the website.

Eventville - www.eventville.com; provides registration process. For more information, contact Steve Bohlayer (301-570-7096; stephenbohlayer@eventville.com) and view the website. 

EventBrite - www.eventbrite.com; provides registration process with payment process availability through other sites.  For more information, view the website.  Reduced rates are available for non-profit organizations.

PayPal - payment process. For more information on programs for Small Not-for-Profit Groups, contact Heather (866-445-3167, x38713).

QuickBooks from CMAA
For information on QuickBooks, contact Martha Montague.  This financial software program can be provided at a cost of $216/year to a chapter.