[Nfbwv-talk] For Chapter Presidents and Chapter Treasurers

[Smyth, Charlene R]

Message from National Treasurer Jeannie Massay

Greetings all:

Every Chapter should have their own Employer Identification Number( EIN).  Below are directions to do so.  This is what you must use in order to establish a bank account. You should also have a conversation with your affiliate president regarding these types of issues to make certain that everyone understands.

You may be getting confused about the difference between An EIN and the 501c3 designation which affiliates must have but chapters should not.

Please know that any donations that you may receive, when fundraising for your chapter,  that when a charitable donation letter for tax purposes is requested, those donations should go to the affiliate and the affiliate should then send them back to the chapter.  The reason for this is that the chapter is NOT a 501c3 and is therefore not a tax-exempt charity which then makes the donation not one made to a charity.  There will be more information in the new Reference Guide for Leaders which is in the finishing stages as we speak.

Should you have any questions, please feel free to contact me at the below information.

Warm regards,

Jeannie

Jeannie M. Massay
Treasurer, National Federation of the Blind
President, National Federation of the Blind  of Oklahoma
405-600-0695
president at nfbok.org<mailto:president at nfbok.org>
www.nfbok.org<http://www.nfbok.org/>

Obtaining an Employer Identification Number (EIN)

by Curtis Chong

An employer identification number (commonly referred to as an EIN), is required if a chapter or division intends to open a bank account. Each state affiliate has an EIN because it has at least one bank account. An individual who opens a bank account uses his/her Social Security number; the state affiliate uses its unique employer identification number. Chapters and divisions should under no circumstances use the EIN of the state affiliate but should obtain their own unique EIN.

It is fairly easy to apply for an EIN online. The following information will help you to answer the questions on the application correctly.

Before beginning the process, the chapter or division must have decided on a "legal" name and must have elected officers. Either the president or the treasurer, as the "responsible party," should fill out the online application.

You begin by pointing your browser to this link:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online.

On the page which appears, click on the "APPLY ONLINE NOW" link. You must do all of this during what the Internal Revenue Service calls its "hours of operation," which are Monday through Friday, from 7:00 a.m. to 10:00 p.m. eastern time. Unfortunately, it does not seem possible to apply for an EIN online during the weekend.

The first piece of information you need to indicate on the application is the type of organization for which an EIN is being requested. The type of organization is indicated by selecting one of the radio buttons on the page. You should select the radio button for "View Additional Types." Press the "Next" button to continue.

On this next page, select "community or volunteer group." According to the Internal Revenue Service, "A community or volunteer group is any specialized interest group that comes together to provide volunteer services. Examples of community or volunteer groups include neighborhood watch groups and preservation societies. These groups generally apply for EINs for banking purposes only."

Once you select this option, click next. You will be asked to verify if this is indeed the type of group for which you are asking for an EIN.

As the "responsible party," you will be asked to provide your name, your social security number, and confirmation that you are the duly authorized party representing the organization. Next, you will be asked for an address and phone number and to confirm whether that address is the one where mail should be sent on behalf of the organization. You will then be asked for the "legal" name of the group and the county in which it operates. You will also be asked for the date on which the "business" started.

Next you will be given a list of options (such as social assistance) on the type of service the organization provides.  On this page, hit "other".  This will send you to a second tier of options for "other".  Choose the option, "organization".  After that, you are asked to define a primary activity of the organization.  Of the options, choose "social or civic".

Once all of the information has been supplied, you will be given a provisional EIN, which will be followed by a written confirmation, sent through the mail.  You should also be given the opportunity to print the EIN letter on the spot.

It is really that simple. If you answer the above questions correctly (in particular, indicating that the chapter or division is a community or volunteer group), the EIN is obtained with a minimum of fuss.




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