Financial Information

Federal and State Tax Exemption

Federal Tax Exemption
The Alumnae Association submits a list to the IRS annually of all Alumnae Association affiliates (classes, clubs, informal groups and other affiliates).  In order to be considered tax-exempt by the IRS you must be included on this list.  In order to be included on this list, each class, club, informal group or affiliate needs an EIN. 

The IRS recognizes these groups as exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code.  This exemption entitles your donors to deduct contributions to your group, including class and club dues.  In addition, bequests, legacies, devises, transfers or gifts are deductible for Federal estate and gift tax purposes.

In addition, the Alumnae Association and all of its affiliates are considered 509(a)(3) supporting organizations.  The Pension Protection Act of 2006 changed the filing requirements of 509(a)(3) supporting organizations effective with tax periods ending after August 17, 2006.  As a result of these changes, all Alumnae Association affiliates must file an IRS Form 990 or 990EZ, or participate in the Alumnae Association’s group filing by completing the Alumnae Association’s financial forms and giving the AA permission to include you in the group filing.  Failure to file a Form 990 or 990-EZ for three consecutive years will result in your tax-exempt status being revoked by the IRS. 

An Excel version and PDF of the Alumnae Association’s financial forms can be accessed on the Alumnae Association’s website, or by contacting Stephanie Gonthier.  Please refer to the directions for assistance completing the forms, and contact Stephanie Gonthier at 413-538-2736 or sgonthie@mtholyoke.edu with any questions.  It is imperative that these forms are completed by the due date on the form to allow sufficient time to consolidate all of the information and file the IRS Form 990 on time.

It is up to each individual class or club to determine the required information filings, if any, for their state and comply with them.

State Sales Tax Exemption

Federal exemption does not entitle Alumnae Association affiliates to exemption from state sales tax. In order to make purchases exempt from sales tax your group needs to apply for sales tax exemption in each state in which it would like to make sales-tax exempt purchases.

The regulations regarding sales tax exemption, the process, and the documentation required differ from state to state. Click here for a spreadsheet with sales tax exemption information for all states. Click here for detailed instructions on applying for Massachusetts’ sales tax exemption online.

Documentation requested by a state may include your group’s EIN, a copy of your group’s Constitution and bylaws, a state-specific tax-exempt application, a copy of the Alumnae Association’s IRS Letter of Determination, a copy of the Alumnae Association’s group exemption letter, and a letter from the Alumnae Association indicating your affiliate status. This last document can be obtained from the Alumnae Association by contacting Stephanie Gray Gonthier, Director of Finance, via e-mail or at 413-538-2736.

Please note that some states will want a copy of your group’s bylaws and will specifically look for an article of dissolution which explicitly states that in the event of your group’s dissolution none of its assets will inure to any private individual or organization, and that they will be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code. If your bylaws do not include an explicit article of dissolution consider amending them.

The rules regarding what entitles a group to sales tax exemption are dictated by the individual state, and you may find your class will not qualify for exemption in a particular state. Tax-exempt applications can take 2-3 months to process, so it is best to apply early (for example, in the fall prior to reunion). If you have any questions or would like assistance with the process, please contact Stephanie Gray Gonthier, Director of Finance, via e-mail or at 413-538-2736.

The issue now is not simply what we know; it is also what we understand. The issue now is not simply whether we can merely answer questions; it is also how well we can articulate our answers. — Vincent A. Ferraro, Ruth C. Lawson Professor of International