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Arkansas Extension Homemakers Council

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Section A
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Section B
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Section C
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Section C
Standing Rules

Section D
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Section E
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Section F
Awards

Section G
County/Club Officers

Section H
Financial Affairs

Section I
U of A,  Extension

Section J
Legal Matters

Section K
Affiliation With Others

Using ID Numbers on Bank Accounts

Extension Homemakers Clubs are members of County Councils of Arkansas Extension Homemakers Council. All clubs have their own EIN numbers and are subordinates of the Arkansas Extension Homemakers Council.

The Arkansas Extension Homemakers Council and its subordinates, or County Councils, and Extension Homemaker Clubs are classified by Internal Revenue Service (IRS) as 501(c)(3) tax-exempt organizations.

An Arkansas Extension Homemakers Council or Extension Homemaker Club having monies to deposit in a savings account is required to furnish the bank or savings and loan association an ID number for the account the same as an individual would do. Savings institutions are required to report interest earning of $10 or more to the IRS, giving the ID of the account.

The State Council accountant is Neil Denman. Mr. Denman recommends that all Extension Homemaker Clubs and County Councils have EIN numbers.

IRS Reports

There are usually inquires about the Internal Revenue Form 990 and 990A for your County Extension Homemakers Council.

First, the IRS forms should reach you before the end of your fiscal year. The return is due no later than the 15th day of the 5th month following the close of the fiscal year, June 30th.

Secondly, some of you may not receive the form and later may receive a letter from the IRS requesting explanation of why your Extension Homemakers Council did not report. If your council is one of those, contact Betty Oliver at the State Extension Office when you receive your letter.

Out-of-Pocket Un-reimbursed Expenses Incurred in Rendering Service to Tax-Exempt Organizations

From time to time there are questions about claiming deductions on income tax for expenses incurred in volunteer work for tax-exempt organizations, of which Extension Homemakers Council is one.

Certain out-of-pocket expenses are allowable by Internal Revenue Service, but not charges for personal time or services.

Below is a brief explanation of the rules regarding volunteer unreimbursed expenses. This applies to EHC, 4-H, church, and other tax-exempt organizations. This information may be helpful to Extension Homemakers Council members in preparing personal income tax returns.

The value of service rendered to a charitable organization, such as an Extension Homemakers Council, is not deductible as a contribution. But an out-of-pocket un-reimbursed expense, such as those for transportation, travel, telephone, etc., incurred in rendering such service is deductible as a contribution. This includes reasonable payments for necessary meals and lodging while away from home overnight donating services to a qualified charitable organization.

• Convention expenses that are out-of-pocket, if one is a delegate to that convention, may be deducted.
• Special uniforms that are distinctive with patches or logo, not otherwise suitable for everyday wear, are deductible.
• Contributions of time and services are not considered deductible items.
• Expenses for babysitters are not deductible.
• Instead of a deduction based on actual expenses incurred in using an automobile for transportation, a standard rate per mile may be used in computing the cost of operating an automobile where such transportation expense is deductible as a charitable contribution. (The standard rate per mile changes every year. Check your IRS form for the current rate.) Under the standard rate method, parking fees and tolls are deductible in addition to the standard rate per mile. Depreciation and insurance are not deductible as part of the contribution.
• Out-of-pocket un-reimbursed expenses involved in rendering service to a qualified charitable organization are reported on Form 1040, Schedule A, “Itemized Deductions,” along with other deductible contributions, taxes, interest, medical expenses, and miscellaneous deductions. Taxpayers may use a standard deduction in lieu of itemized deductions. Consult IRS Form 1040 instructions.

It is important that the volunteer keep accurate records and be able to validate claims. Volunteers may want to check with their local IRS office if there are questions or additional information is needed.

The IRS has a toll-free telephone number within the State of Arkansas to allow taxpayers to get immediate information and assistance. The number is 1-800-829-1040.

Updated 9/11/2009