Question: When a community college ASB club is fund-raising and/or looking for donations, can they use the college Tax ID number if the donors request it, if they do not have their own?

Response: When outside business or individuals are considering making a donation, ASBs are frequently asked for their tax identification number. Usually, ASBs do not have their own tax identification number; rather, they use the district’s. The ASB and the district are not considered a private nonprofit 501 (c) (3) organization; rather, they have nonprofit, tax-exempt status by virtue of being a governmental entity. The district’s tax identification number should always be treated confidentially; it should not be given out when asked because it is not required for the donors to claim a tax deduction. All requests for the district’s tax identification number should be forwarded to the district’s business office unless sites have been provided with a letter to send out when asked for the number. Many districts have developed a letter for requestors that will meet their need to document a tax-deductible donation.

A sample letter will often look something like this:

Letter Regarding Tax-Exempt Status (Use district or school site letterhead)

Date

To whom it may concern:

Thank you for interest in supporting our schools. We often receive inquiries about our nonprofit status. Please accept this letter as certification that the Sample Community College qualifies as a not-for-profit organization. We are a state educational institution, which is considered a political subdivision of the State of California. Because of this, we are considered a nonprofit state entity rather than a private 501(c) (3) nonprofit organization. Donations and private grants made to our schools are tax-deductible under these statutes.

If you have further questions, please feel free to contact me at (000) 000-0000.

Sincerely,

Name Chief Business Official

As a special service to government entities, the Internal Revenue Service (IRS) will also sometimes send a government affirmation letter free of charge to assist in this area. A government affirmation letter can be requested from the IRS by calling 1-877-829-5500. The district’s tax identification number is needed to order the letter. The letter describes government entities’ exemption from Federal income tax and cites applicable internal revenue code sections pertaining to deductible contributions and income exclusion. Most organizations and individuals will accept the government affirmation letter as sufficient.

10/15/09