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Fundraising
Tau Kappa Epsilon is organized as a not-for-profit corporation in the state of Indiana, and is recognized by the Internal Revenue Service as a not-for-profit corporation. This means that the federal government will not tax any profit generated by TKE. It does not mean, however, that donations to TKE are tax deductible.Section 6113 of the Internal Revenue Code imposes a requirement on not-for-profit tax-exempt organizations that a "conspicuous and easily recognizable" statement appear on all fund-raising solicitations, including dues billings and housing invoices. The statement must specify that all contributions and payments made to the organization are non-deductible as charitable contributions for federal income tax purposes. Failure to comply can result in a $1,000 per day penalty by the Internal Revenue Service.
This disclosure requirement is applicable to all organizations exempt from taxation under 501(c) of the Internal Revenue Code, which includes almost all TKE chapter corporations, unless organized as a 501(c)(3) corporation (like the TKE Educational Foundation).
Our legal counsel advises that the following language should appear on all fundraising solicitations, dues billings, and invoices:
Contributions and payments to (insert name of chapter, Board of Advisors, house corporation, etc.) are not deductible as charitable contributions for federal income tax purposes. However, they may be deductible under other provisions of the Internal Revenue Code.