Florida 4-H Program Handbook
SECTION 5: Tax Exempt Status
Federal Income Tax
The Internal Revenue Service, in a ruling letter of February 9, 1973, recognized the tax exempt status of 4-H units and affiliated 4-H organizations which are organized and operated under the auspices of Cooperative Extension. This guidance and oversight must be in keeping with the regulations governing the use of he 4-H name and emblem, and be in accordance with the policy statement in Chapter XI, Section 8.2 of the Federal Administrative Handbook for Cooperative Extension work.
Current IRS publications covering tax-exempt status should be reviewed annually for details on reporting requirements and changes in the code.
A publication for use by Cooperative Extension personnel to interpret the authorization is USDA Program Aid Number 1281, Tax Exempt Status of 4-H Organizations authorized to Use the 4-H Name and Emblem, revised May 1993. A copy of this publication is available in the appendix and you can always obtain the most current by going to the Florida or National 4-H website.
Florida Sales Tax Exemption
A Florida non-profit may apply to the Florida Department of Revenue to receive a certificate of exemption from sales taxes on things purchased that further the mission of the non-profit.
How Is a Sales Tax Exemption Acquired?
You must apply through the Florida Department of Revenue. A form DR-5 must be completed. The process takes several weeks. This certificate must be renewed periodically.
Use of a Sales Tax Exemption
The best way to use this exemption is to establish a charge account with any companies you do business with on a regular basis. They will ask for a copy of your certificate. The exemption can only be taken when you pay the company with an authorized check from your foundation/county account.
What if a volunteer goes to local business and buys paper supplies for the 4-H Banquet, can he/she write a personal check and use the sales tax exemption?
No. The exemption is only good when materials are purchased with a foundation/county/club (whatever entity has filed and received a certificate of tax exemption) check.
Can a 4-H club use the county foundation’s sales tax number?
No. This is illegal. The sales tax exemption is valid only for the entity that specifically applies for it. The only case in which this would be a possibility is if the 4-H clubs have sub-accounts within the county foundation and in this case the entity is the foundation. Under this condition, the same principle applies as in the above situation. All purchases must be paid for with monies of non-profit entity - not individual. The Florida Department of Revenue will penalize any organization sharing a sales tax exemption number.
