When Alpha Delta Kappa received its tax-exempt status in 1967, the IRS determined a designation of 501(c)(7), for Social Clubs. A 501(c)(7) designation means that we are generally exempt from income tax, but not from sales or property taxes, and donations to states and chapters are not tax-deductible to the donor. However, we are so much more than a social club! Just think of all the good works we do on every level. This biennium, the International Executive Board decided to pursue an overall 501(c)(3) designation for Alpha Delta Kappa, and the process is moving forward! The new designation will cover all participating U.S. states and chapters. We will be supplying instructions in the coming weeks as to what actions your state and chapter needs to take in order to participate. The Alpha Delta Kappa Foundation, created in 1981, has always had a 501(c)(3) designation, and its designation will not be affected by this process.
Once the re-designation process is complete,
Alpha Delta Kappa and all participating chapters and states will become immediately eligible to receive tax-deductible donations! This should greatly improve our ability to raise funds, as many individuals and businesses are reluctant to donate to organizations without a 501(c)(3) designation and many foundation and government grants require the recipient to hold a 501(c)(3) designation. Think of all of the fundraising you could do! Participating states and chapters may also be eligible for sales and property tax exemptions, depending on the laws of their particular state.
In order to move forward with the application process, the International Executive Board, at the advice of our tax attorney, made some slight modifications to the Articles of Incorporation, Constitution and International Bylaws. You will see these when the proposed Bylaws Amendments are distributed in next week's eblast and on the website. If anyone in your chapter does not have e-mail, please print and bring the proposals to your next chapter meeting. When the 501(c)(3) designation is granted, we will be publicizing it with every method available! Alpha Delta Kappa is definitely moving forward!