As mentioned elsewhere in this website, all Lions Clubs are chartered by Lions Clubs International, founded by Melvin Jones. As part of its bylaws, each club is required to maintain its financial records into two separate, distinct funds. The first, an Administrative Fund, is used for the operations of the club which includes the collections of dues from members; administrative costs such as postage, meeting expenses; payment of dues to affiliate organizations (LCI, State Council of Lions Clubs, and Lions Districts); and all other operating costs. The second fund is the Activity Fund, in which all the charitable operations of the club are recorded. All monies received from the public, as well as the results of fund-raising activities are maintained in this account. One-hundred percent (100%) of all monies received from the public, plus any donations from members and the net receipts of fund-raising activities are contributed back to the community via donations to other charitable organizations, scholarships, and /or grants to individuals in need. All monies received from the public are specifically restricted from being used to operate the club and must be returned to the community.
All Lions Clubs are recognized by the Internal Revenue Code as “not-for profit civic” organizations, which means their primary financial activities are not taxed for federal income tax purposes. The section of the IRS code that defines these “civic” organizations is identified as Section 501(c)(4)… thus such civic organizations are known as 501(c)(4) entities. Contributions by individuals to these organizations are not tax deductible on personal federal income tax returns.
However, contributions to 501 (c)(3) entities, known as “not-for-profit charitable” organizations are tax deductible by taxpayers for federal income taxes. As a result, some Lions Clubs, including the New Freedom Lions, have established a separate 501 (c)(3) charitable foundation in which to record all its charitable activities, essentially moving the Activity Fund out of the Club and into the Foundation.
If you would like to make a tax-deductible contribution to the Lions Club Foundation of New Freedom which will ultimately be donated back to Southern York County communities, please click the button below. And thanks for your contribution, it is greatly appreciated!