Group Tax Exemption Program (GTEP)

A benefit available to Qualified CGCI member clubs and districts
CGCI GTEP Chairman:  Krystal Migliore 
Check the NEW IRS Registration Guidelines in right sidebar

What is it?

What is GTEP?
  • It is the opportunity for a member Garden Club or District to obtain Tax-Exempt Status under the CGCI exemption “umbrella”.
  • Please note:  If you already have tax-exempt status from the IRS and California you DO NOT need to apply through CGCI.  Also you do not need to "renew" each year through the CGCI program.  If you lose your independent exemption you cannot apply for reinstatement through the CGCI program.
Why is this allowed?
  • California Garden Clubs, Inc. is a not-for-profit educational organization under Section 501(c)(3) of the Internal Revenue Code. This section affords CGCI tax-exempt status.
  • CGCI applied for and received a group exemption letter recognizing subordinate clubs and districts of the type described in
    • Section 501 (c)(3) of the Internal Revenue Code on November 15, 2006
    • Revenue and Tax Code Section 23701d of the California Franchise Tax Board on November 9, 2010, retroactive to November 15, 2006.
  • By obtaining these Group Exemptions, CGCI is able to pass along to its subordinates its tax exemption status under both Federal and California codes.
  • Thus, qualifying member clubs and districts are eligible to be considered tax-exempt organizations under the same status as CGCI, as long as they follow the guidelines set by CGCI on the basis of IRS and California FTB requirements.
  • In order to continue in the CGCI Group Tax Exemption Program, the member clubs and districts also need to  meet all Federal and California tax form and filing requirements.  If your GTEP exemption is revoked, you must apply directly to the IRS for reinstatement.



What are the benefits & cost?

By being included in the Group Exemption Letter
-subordinates do not have to file an application for exemption
-members of the Group Exemption do not have to pay the federal or state fees to obtain an exemption letter
CGCI fees:  Application - $35; Annual Renewal - $15
-members of the Group Exemption can accept donations that are tax-deductible under the law
-bequests, legacies, devises, transfers, or gifts are deductible for federal estate and gift tax purposes if they meet the applicable provisions of section 2055, 2106 and 2522 of the Code.

Forms 

NEW application
The following required CGCI forms can be saved to your computer and completed electronically
Renewal (annually)
Renewal packet, including the renewal form, will be SENT TO YOU sometime in September of each year, by the GTEP Chairman
If you do not receive a packet, please contact the GTEP Chairman
Optional Form (for your use)
Organization Information Sheet - to keep track of important information needed to complete federal and state filing requirements.
GTEP members (2016-17)
Federal and State forms and publications are listed/linked in right sidebar 

GTEP Handbook 

To facilitate the process we have prepared a GTEP Handbook (updated November 2015)
  • It can be downloaded and saved to your computer or printed for handy reference
It contains:
  •  What is GTEP?
  • GTEP Requirements
  • How to apply
  • How to renew
  • IRS requirements
  • California requirements
  • Frequently Asked Questions
  • Important dates to remember
  • Sample Application Form
  • Sample Articles of Affiliation Form
  • IRS required Bylaws language
 
  • Sample Activities Form
  • Sample Financial Statement
  • Charitable Trust Initial Registration
  • Charitable Trust Annual Report
  • Raffle Registration
  • Raffle Annual Report
  • Organization Information Sheet