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March 2009 M E M O TO: United States, Chapter Finance Coordinators United States, Regional Finance Coordinators RE: Filing of United States Government Form 990 for 2008 (fiscal year ending April 30, 2009) Verification of Audit IMPORTANT NEW INFORMATION Last year the IRS required chapters and regions with gross receipts of $25,000 or less to file an electronic 990-N (e-Postcard) with the Internal Revenue Service. The following provides information about each of the filing requirements. NEW Effective with 2008 tax years (returns filed beginning in 2009), chapters or regions with gross receipts of more than $25,000 and less than $1 million, and total assets less than $2.5 million may now file a 990EZ or 990. IT IS RECOMMENDED THAT THE 990EZ FORM BE FILED BY CHAPTERS OR REGIONS BECAUSE OF EXTENSIVE NEW SCHEDULES AND QUESTIONS ON THE 990 FORM. Annual Electronic Filing Requirements-Form 990-N (e-Postcard) For the fiscal year ending April 30, 2009, e-Postcards are due every year by September 15 for organizations with $25,000 or less in gross receipts. Although our organization’s year ends in 2009, this is considered a 2008 filing. An organization's gross receipts are considered to be $25,000 or less if the organization: Has been in existence for 1 year or less and received, or donors have pledged to give, $37,500 or less during the organization's first tax year; Has been in existence between 1 and 3 years and averaged $30,000 or less in gross receipts during each of its first 2 tax years; or Is at least 3 years old and averaged $25,000 or less in gross receipts for the immediately preceding 3 tax years (including the year for which calculations are being made). An e-Postcard must be filed on the IRS Web site. The information required for the electronic filing is as follows: Employer identification number (EIN) Tax year (2008) Legal name and mailing address of the chapter or region (name of chapter/region of Sweet Adelines International) Name and address of a principal officer (finance coordinator/treasurer or president) Web site address if chapter or region has one Confirmation that the organization’s annual gross receipts are normally $25,000 or less If applicable, a statement that the organization has terminated or is terminating To learn more about the 990N requirements and how to file: http://www.irs.gov/charities/article/0,,id=169250,00.html Internal Revenue Service Form 990EZ or 990 Filing Requirements All United States chapters, regions and prospective chapters in existence during the period beginning May 1 to the following April 30 are required to file Form 990EZ or 990 annually with the IRS if their annual gross income is more than $25,000 and less than $1 million and total assets are less than $2.5 million. Schedule A must be completed for forms 990 and 990EZ. The Schedule A has been re-designed so that many of the questions are now incorporated into the 990EZ or 990 Form. Additionally, a Form 990-T must be filed if gross income from an unrelated trade or business is $1,000 or more. The deadline for filing these forms with the Internal Revenue Service is September 15 of each year. IT IS HIGHLY ENCOURAGED THAT 990EZ BE USED AS THE NEW 990 REQUIREMENTS ARE EXTENSIVE SCHEDULE A Schedule A was revised beginning in 2008. In Part I, Box 9 needs to be checked, part II does not need to be filled out, part III needs to be completed and part IV should be filled out only if needed. For additional information regarding the 990EZ forms and schedules, please contact the Director of Finance and Administration at donna@sweeetadelineintl.org or 1-800-992-7464 ext 115. FAILURE TO FILE 990 INFORMATION FOR THREE CONSECUTIVE YEARS, MAY RESULT IN REVOCATION OF THE CHAPTER OR REGION’S TAX EXEMPT STATUS Please provide a copy of the 990 filing to International Headquarters, attention Donna K. Kerley, Director of Finance and Administration. VERIFICATION OF AUDIT Each chapter and region is required to submit a verification of audit. The region's and chapter’s books and financial records should be audited by an internal audit committee or an independent third party such as an accounting firm. When making arrangements for a third party to conduct the audit, be sure to discuss the fee. It is not necessary for the auditor to do a complete audit and issue a formal or unqualified opinion. The auditor should primarily seek to verify bank balances and the proper recording of receipts and disbursements. Attached is the Verification of Audit form to complete. Please return to International Headquarters by July 15, 2009. NOTE: The Verification of Audit form is sent to chapter finance coordinators and regional finance coordinators. Frequently Asked Questions Q. How are gross receipts determined? A. Gross receipts are all monies received from all sources, without deducting any costs or expenses, which contributed to the activities and operations of the organization. The exception to this is sales items. The net amount (gross sales less cost of goods) is reported in gross receipts. The following revenue is not reported as gross receipts. a. The collection of International dues from members which are subsequently forwarded to Headquarters and regional assessments which are sent to the region. Any pass-through monies are not included. Pass through monies are defined as any funds collected as a convenience and forwarded to another entity. b. Funds received for payment of registration or fees for future events that do not pertain to the current fiscal year. EXAMPLE The fiscal year ends April 30, 2009 Monies are received from members in March 2009 (or earlier in the year) for an event or workshop being held in June 2009. These funds may be recorded in an account titled "Deferred Income" and would not be reported as income for the fiscal year ending April 30, 2009. On May 1, 2009 this amount would be transferred from the "Deferred Income" account on the balance sheet to an income account for the event or workshop and reported for the fiscal year ending April 30, 2010. Please contact Donna Kerley, Director of Finance and Administration at International Headquarters with additional questions pertaining to GROSS RECEIPTS. Q. If any of the Forms 990s must be filed, how can they be obtained? A. The IRS will send your chapter or region the forms if you have previously filed. If they have not been received, contact your local Internal Revenue Service office and request the forms or access the forms on the IRS Website http://www.irs.gov, click the tab for charities and non-profits and search for 990 forms. Upon request, International Headquarters will provide Forms 990EZ, Schedule A, Schedule B and 990-T. Q. How do I know if my state has filing requirements? A. The finance coordinator should check with the appropriate state agency to see if there are any filing requirements. Sweet Adelines International's exemption from federal income tax does not necessarily exempt chapters or regions from filing requirements and tax requirements on the state and local level. Each chapter and region is responsible for obtaining the necessary forms and for filing on a timely basis. This information should become part of the files and should be passed on to each finance coordinator. Q. If assistance is needed to complete the Form 990s, who may be contacted? A. The Director of Finance and Administration at International Headquarters will answer any questions you may have regarding the requirements for filing or completing the forms, donna@sweetadelineintl.org or 1-800-992-7464 ext. 115. Q. Where do I file the returns? A. Chapters: Form 990s are filed by districts as defined by the Internal Revenue Service. The addresses are listed in the Form 990 instruction booklet or may be obtained from International Headquarters. Regions: Form 990s are filed in the district as defined by the Internal Revenue Service. The district is determined by the State in which the current Finance Coordinators resides. The returns are processed according to the tax identification number of the region. It is the responsibility of the Internal Revenue Service district in which the return was filed to forward it to the processing agency. If you have any questions, please do not hesitate to contact me. Donna K. Kerley Director of Finance and Administration (3/09) donna@sweetadelineintl.org 1-800-992-7464 ext. 115

March 2009
M E M O

TO: United States, Chapter Finance Coordinators United States, Regional Finance Coordinators

RE: Filing of United States Government Form 990 for 2008 (fiscal year ending April 30, 2009) Verification of Audit

IMPORTANT NEW INFORMATION
Last year the IRS required chapters and regions with gross receipts of $25,000 or less to file an electronic 990-N (e-Postcard) with the Internal Revenue Service. The following provides information about each of the filing requirements.

NEW
Effective with 2008 tax years (returns filed beginning in 2009), chapters or regions with gross receipts of more than $25,000 and less than $1 million, and total assets less than $2.5 million may now file a 990EZ or 990.
IT IS RECOMMENDED THAT THE 990EZ FORM BE FILED BY CHAPTERS OR REGIONS BECAUSE OF EXTENSIVE NEW SCHEDULES AND QUESTIONS ON THE 990 FORM.

Annual Electronic Filing Requirements-Form 990-N (e-Postcard) For the fiscal year ending April 30, 2009, e-Postcards are due every year by September 15 for organizations with $25,000 or less in gross receipts. Although our organization’s year ends in 2009, this is considered a 2008 filing. An organization's gross receipts are considered to be $25,000 or less if the organization:

Has been in existence for 1 year or less and received, or donors have pledged to give, $37,500 or less during the organization's first tax year;
Has been in existence between 1 and 3 years and averaged $30,000 or less in gross receipts during each of its first 2 tax years; or
Is at least 3 years old and averaged $25,000 or less in gross receipts for the immediately preceding 3 tax years (including the year for which calculations are being made).

An e-Postcard must be filed on the IRS Web site. The information required for the electronic filing is as follows:

Employer identification number (EIN)
Tax year (2008)
Legal name and mailing address of the chapter or region (name of chapter/region of Sweet Adelines International)
Name and address of a principal officer (finance coordinator/treasurer or president)
Web site address if chapter or region has one
Confirmation that the organization’s annual gross receipts are normally $25,000 or less
If applicable, a statement that the organization has terminated or is terminating

To learn more about the 990N requirements and how to file: http://www.irs.gov/charities/article/0,,id=169250,00.html

Internal Revenue Service Form 990EZ or 990 Filing Requirements
All United States chapters, regions and prospective chapters in existence during the period beginning May 1 to the following April 30 are required to file Form 990EZ or 990 annually with the IRS if their annual gross income is more than $25,000 and less than $1 million and total assets are less than $2.5 million.

Schedule A must be completed for forms 990 and 990EZ. The Schedule A has been re-designed so that many of the questions are now incorporated into the 990EZ or 990 Form. Additionally, a Form 990-T must be filed if gross income from an unrelated trade or business is $1,000 or more. The deadline for filing these forms with the Internal Revenue Service is September 15 of each year.
IT IS HIGHLY ENCOURAGED THAT 990EZ BE USED AS THE NEW 990 REQUIREMENTS ARE EXTENSIVE

SCHEDULE A
Schedule A was revised beginning in 2008. In Part I, Box 9 needs to be checked, part II does not need to be filled out, part III needs to be completed and part IV should be filled out only if needed. For additional information regarding the 990EZ forms and schedules, please contact the Director of Finance and Administration at donna@sweeetadelineintl.org or 1-800-992-7464 ext 115.

FAILURE TO FILE 990 INFORMATION FOR THREE CONSECUTIVE YEARS, MAY RESULT IN REVOCATION OF THE CHAPTER OR REGION’S TAX EXEMPT STATUS

Please provide a copy of the 990 filing to International Headquarters, attention Donna K. Kerley, Director of Finance and Administration.

VERIFICATION OF AUDIT
Each chapter and region is required to submit a verification of audit. The region's and chapter’s books and financial records should be audited by an internal audit committee or an independent third party such as an accounting firm. When making arrangements for a third party to conduct the audit, be sure to discuss the fee. It is not necessary for the auditor to do a complete audit and issue a formal or unqualified opinion. The auditor should primarily seek to verify bank balances and the proper recording of receipts and disbursements. Attached is the Verification of Audit form to complete. Please return to International Headquarters by July 15, 2009.

NOTE: The Verification of Audit form is sent to chapter finance coordinators and regional finance coordinators.

Frequently Asked Questions

Q. How are gross receipts determined?
A. Gross receipts are all monies received from all sources, without deducting any costs or expenses, which contributed to the activities and operations of the organization. The exception to this is sales items. The net amount (gross sales less cost of goods) is reported in gross receipts. The following revenue is not reported as gross receipts.

a. The collection of International dues from members which are subsequently forwarded to Headquarters and regional assessments which are sent to the region. Any pass-through monies are not included. Pass through monies are defined as any funds collected as a convenience and forwarded to another entity.
b. Funds received for payment of registration or fees for future events that do not pertain to the current fiscal year.

EXAMPLE
The fiscal year ends April 30, 2009 Monies are received from members in March 2009 (or earlier in the year) for an event or workshop being held in June 2009. These funds may be recorded in an account titled "Deferred Income" and would not be reported as income for the fiscal year ending April 30, 2009. On May 1, 2009 this amount would be transferred from the "Deferred Income" account on the balance sheet to an income account for the event or workshop and reported for the fiscal year ending April 30, 2010. Please contact Donna Kerley, Director of Finance and Administration at International Headquarters with additional questions pertaining to GROSS RECEIPTS.

Q. If any of the Forms 990s must be filed, how can they be obtained?
A. The IRS will send your chapter or region the forms if you have previously filed. If they have not been received, contact your local Internal Revenue Service office and request the forms or access the forms on the IRS Website http://www.irs.gov, click the tab for charities and non-profits and search for 990 forms. Upon request, International Headquarters will provide Forms 990EZ, Schedule A, Schedule B and 990-T.

Q. How do I know if my state has filing requirements?
A. The finance coordinator should check with the appropriate state agency to see if there are any filing requirements. Sweet Adelines International's exemption from federal income tax does not necessarily exempt chapters or regions from filing requirements and tax requirements on the state and local level. Each chapter and region is responsible for obtaining the necessary forms and for filing on a timely basis. This information should become part of the files and should be passed on to each finance coordinator.

Q. If assistance is needed to complete the Form 990s, who may be contacted?
A. The Director of Finance and Administration at International Headquarters will answer any questions you may have regarding the requirements for filing or completing the forms, donna@sweetadelineintl.org or 1-800-992-7464 ext. 115.

Q. Where do I file the returns?
A. Chapters: Form 990s are filed by districts as defined by the Internal Revenue Service. The addresses are listed in the Form 990 instruction booklet or may be obtained from International Headquarters. Regions: Form 990s are filed in the district as defined by the Internal Revenue Service. The district is determined by the State in which the current Finance Coordinators resides. The returns are processed according to the tax identification number of the region. It is the responsibility of the Internal Revenue Service district in which the return was filed to forward it to the processing agency.

If you have any questions, please do not hesitate to contact me. Donna K. Kerley Director of Finance and Administration (3/09) donna@sweetadelineintl.org 1-800-992-7464 ext. 115

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