An Altrusa Club may form an LCF, which is a separate and distinct entity from the Club. The Club is a 501(c)(4) corporation, while the LCF will be a 501(c)(3) corporation. As a 501(c)(3) corporation, donations to your Foundation are tax-deductible to the full extent provided by law.

This is a great advantage to contributors, and of great interest to corporations that may be considering assisting your Club’s activities. Both 501(c)(3) and 501(c)(4) organizations are tax-exempt, in that neither has to pay tax on its income (though returns must be filed), but only 501(c)(3) organizations can offer tax-deductible status for donations to it.

Forming a Local Club Foundation

Local Clubs may set up an LCF independently, or “under the umbrella” of Altrusa International Foundation, Inc. If you choose to set up under the group tax-exemption of the International Foundation, you need not make a separate application for 501(c)(3) status, but your LCF must have its own Tax I.D. number, also referred to as a FEIN or EIN.

The steps to form an LCF under the International Foundation’s group tax exemption, or “under the umbrella” of the International Foundation are listed below in a PDF document. Please consult them carefully. Failure to do so may result in a delay in incorporating your LCF.

It is no longer necessary to request a 501 (c) 3 Packet from the Foundation Office. All forms and instructions are included in the LCF Manual listed below in the “LCF Resources” section.

Annual Compliance Requirements for All Local Club Foundations

Each year, LCFs under the International Foundation’s Group Exemption umbrella must complete a number of items to remain in compliance. If these items are not completed, the LCF will be in jeopardy of being dropped from the International Foundation’s group exemption umbrella (Being dropped from the International Foundations umbrella means contributions to the LCF are no longer tax deductible.) This should be avoided entirely.

These items must be completed each year: 

1. Review the Compliance Obligations Letter from the Legal Advisor.

You will receive a letter from the International Foundation’s Legal Advisor in the fourth quarter of each year. Review it carefully as compliance obligations may change from year to year. If you do not receive the annual letter, make sure the International Foundation has the correct name and email address for your LCF’s President and Treasurer, as it is sent to them.

2. Complete and Submit the Annual Report.

The International Foundation Office will send you an Annual Report Form to be completed and returned to the Foundation Office by the deadline listed on the form. This will be mailed in in the fourth quarter of the year. It is also available below in the “LCF Forms” section. If you do not receive it, make sure the International Foundation has the correct name and email address for your LCF’s President and Treasurer as the form is sent to them.

3. File the required IRS reporting forms.

These are either the e-Postcard, Form 990EZ , or Form 990. The IRS website provides more information on how to file your 990.

4.  File Your State’s Annual Reporting Form (Annual Registration Report).

Most states require an annual reporting form, sometimes called an Annual Registration Report, in order to maintain your LCF’s corporate status in your state. Make sure to send it in in a timely manner. Some states require less frequent reporting or provide that Biennial Registration Reports can be filed. Visit your Secretary of State and Attorney General’s website for more information. The due date for this form varies from state to state. Failure to file by the due date may cause your LCF to forfeit its corporate status. In that case, you must inform the International Foundation immediately and take all steps to rescind the forfeiture.

More information can be found on these and other LCF topics in the “LCF Manual 2024” listed below in the “LCF Resources” section.