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Please note that a user fee payment is required with the submission of Form 1023. If your club’s
average annual gross receipts have exceeded, or will exceed, $10,000 annually over a 4-year
period, you must submit a payment of $750. If they have not exceeded, or will not exceed,
$10,000 annually over a 4-year period, the required application fee is reduced to $300.
Note: Clubs may already be considered to have 501(c)(3) status if the social activities of a club
are no more than incidental to its basic purpose of advancing the interests of Harvard. The IRS
will then consider the club an exempt charitable organization or educational organization under
501(c)(3) of the code without requiring the organization to file a formal application or an annual
return, provided that its gross receipts are sufficiently small—i.e., “normally” less than $5,000
per year. Total gross receipts exclude gifts that are intended for and transmitted to Harvard
annually for scholarship, etc.
How to Improve Your Club’s Chances of Obtaining 501(c)(3) Status
1. Obtain an EIN.
2. Draft Articles of Incorporation. This is very similar to a mission statement and its language
should clearly identify the club as promoting the welfare of the University and its alumni.
3. Draft bylaws/constitution keeping in mind those provisions required for the IRS
“organizational test” of non-profits, including:
• The IRS encourages organizations to include “the standards, criteria, procedures, or other
means that your organization adopted or planned for carrying out those activities.” Since
clubs generally apply as educational charities, they should clearly list the educational
activities they will be engaging in, for example, Schools and Scholarships volunteer
work, Prize Book award program, lectures and demonstrations and/or scholarship
fundraising. In addition to initially demonstrating their commitment to supporting the
University’s charitable and educational mission, clubs will need to be able to demonstrate
this on an ongoing basis in their annual returns. (Please note there is a particular section
of Form 1023 to be filled out by clubs engaged in scholarship fundraising, Schedule H.)
• The club bylaws/constitution must include a mission statement to “promote the welfare of
the college or university.”
4. Be sure your bylaws/constitution dictates appropriate use of club monies.
• The bylaws/constitution should contain language prohibiting inurement (members
profiting from the club) and outlining how the club will use its money. The IRS offers
this sample language for bylaws/constitutions: No part of the net earnings of the
corporation shall inure to the benefit of, or be distributable to its members, trustees,
officers, or other private persons, except that the corporation shall be authorized and
empowered to pay reasonable compensation for services rendered and to make payments
and distributions in furtherance of the purposes set forth in the mission statement.”
• The assets of the club must be dedicated to another tax-exempt organization should the
club dissolve. In other words, if the club becomes inactive, its treasury must be given to
another educational charity. The IRS offers this sample language for bylaws/
constitutions: “Upon the dissolution of the corporation, assets shall be distributed to one