Toastmasters International is registered in the U.S. as a 501(c)(3) nonprofit organization. It is classified as an educational nonprofit organization and possesses federal tax exempt status within the U.S. The organization’s World Headquarters is located in Colorado, which is the only location where Toastmasters International has employees or a permanent establishment.

District Compliance

According to the Bylaws of Toastmasters International, Article XII: Districts, Section 3 (e), Districts, Divisions, and Areas are not permitted to create their own legal entities as this would jeopardize our non-profit status.

Furthermore, Districts in the U.S. are not required to register with any federal or state authority. If your District or club is contacted by a federal or state authority, please contact the Treasury and Compliance Team or the Legal Team.

Toastmasters International shall indemnify District Directors as long as the directors are in compliance with Toastmasters’ governing documents and have met the standard of conduct per Section 5238(b) or Section 5238(c) of the California Corporations Code. For more information see the Bylaws of Toastmasters International, Article XIII: Miscellaneous, Section 6(b).

Club Compliance

Clubs in the U.S. are not required to register with any federal or state authority. If your club is contacted by a federal or state authority, please contact the Treasury and Compliance Team or the Legal Team.

District Funds

Please be aware, District funds are owned by Toastmasters International. A District may open and operate a bank account to administer these funds for District purposes. If any District officer opens a bank account on behalf of the District, the management of the bank account resides with the District and it must be registered within the Toastmasters accounting system. To register the District bank account and for further information, please contact the District Finance Team.

Chartered Toastmasters clubs may be required to provide three items to open a club bank account.*

Banking

• A copy of the Club Constitution and, if applicable, an Addendum of Standard Club Options.
• The unique Employer Identification Number (EIN/tax ID) assigned to your club by the IRS.**
• The meeting minutes, or a simple letter drafted by the Club Secretary, stating the two or three club officers who are authorized as signatories on the club bank account.

For additional assistance, please contact the Treasury and Compliance Team.

*When opening a bank account, you must inform the bank that the club is “organized as a 501(c)(3) Nonprofit Unincorporated Association.”

**When a club is first chartered, World Headquarters applies to the IRS for a unique EIN on the club’s behalf. A hard copy letter stating the newly assigned EIN number is then mailed to the Club President. The IRS also informs World Headquarters of the club’s EIN, which is then entered into Club Central on the Club Demographics page (club officers may access the number there).

Tax Filings

The IRS requires all small nonprofits (i.e., Toastmasters clubs) to file a Federal 990-N tax return each year. Toastmasters International World Headquarters has taken the responsibility for filing these returns on behalf of each club. As such, clubs do not need to file the federal electronic tax return.

California Residents: At this time, only clubs physically located within the state of California have a state tax obligation; therefore, a 199-N must be filed. Use these filing instructions for guidance.

Donations

U.S. Toastmasters clubs and Districts are considered 501(c)(3) nonprofits. As such, they are able to provide documentation for a donor who has made a qualified charitable contribution, which may be considered tax deductible. Please note, Toastmasters is not permitted to give specific tax advice. Donors should discuss the details of this deduction and how it is used with a tax professional, accountant, or Certified Public Accountant. To provide the donor with documentation, please complete a Written Acknowledgement Letter. Be certain to include the donation amount. If goods or services are donated, please include their fair market value.

Please be aware that donors cannot be permitted to dictate how donated funds are to be used by the District or club. However, requests may be honored at the discretion of the District or club officer. If a donor requests something in exchange for the donation, the nature of the donation may change to a transaction or sponsorship, and may no longer be considered tax deductible.

W-9 Information

Districts or clubs may occasionally be asked to provide tax or business information to various entities. The most common method to provide this information is an IRS W-9 Form. If the entity requests a W-9 Form from Toastmasters International World Headquarters, please contact the Treasury and Compliance Team to request the most current copy.

Record Retention

During the program year, a District or club will accumulate documents and emails. Therefore, Toastmasters recommends that the District or club follow the recordkeeping policy, which can be found in the FAQs.

Additional Information

For more information, or for questions that are of an urgent nature, please contact the Treasury and Compliance Team concerning financial questions or the Legal Team at World Headquarters.

*Disclaimer

The materials and information available on these pages, including the country pages, are for informational purposes only and do not constitute legal, financial, or tax advice.