An Update Regarding 501(c) (3) Status for States and Chapters

Information provided by Sandy Wolfe, Chairman of the International Executive Board
On December 5, 2019 Alpha Delta Kappa received a determination letter from the Internal Revenue Service (IRS) that granted the Alpha Delta Kappa organization (501(c)(3) tax-exempt status. Further review of the application for our states and chapters was needed. 

In April 2020 additional documentation was requested from our IRS reviewer that required submission of a massive list of documents from 60 subordinates (chapters or states, including the Commonwealth of Puerto Rico). The list included such things as newsletters, financial reports, minutes, and much more from each subordinate from the past two years. We were unable to meet the deadline.

In late August 2020 the IRS sent a letter of declination on the 501(c)(3) status for our states and chapters within the United States. The declination letter meant the IRS was not willing to make a ruling on our request at that time. The key is that it was not a rejection letter.
We can submit a new application to the IRS in the future requesting a review for 501(c)(3) status for states and chapters, but the IRS now requires:
1.    A dissolution policy in our International Bylaws and in each state’s and each chapter’s bylaws. Based on previous recommendations from the IRS, we had encouraged S/P/Ns to adopt Policies & Procedures with a policy statement certifying they are governed by Alpha Delta Kappa’s International Bylaws. The IRS policy has changed and currently requires bylaws with a dissolution clause to meet 501(c)(3) criteria.
2.    A conforming amendment for our International Bylaws will be proposed at the 2021 International Convention. The language was adopted for the Constitution in November 2020.
3.    Currently, for governance, we have 27states using state bylaws and 24 states using International Bylaws and Policies and Procedures Manuals. Amending our S/P/Ns’ bylaws with the dissolution language in place will occur at their next convention in spring 2022.
4.    The bylaws template will be developed that refers to the International Bylaws and includes the Dissolution Clause to make them acceptable to the IRS for 501(c) (3) after the International Convention. 
So … we cannot submit a new application for 501(c)(3) status until the International Bylaws have been amended and we know states and chapters within the United States have their bylaws in order. In the meantime, we can work to comply with the latest IRS rulings. Thanks for your patience and understanding!