CoDA Announcements: Local Meeting Non Profit Bank Accounts

 
From: "CoDA Announcements" <codalist@codependents.org>
Subject: CoDA Announcements: Local Meeting Non Profit Bank Accounts
Date: December 8th 2016

The following is a resending of an October 2012 email from the CoDA Communications Committee, comm@coda.org

From the 2012 Fellowship Service Manual:

Can our group use the Co-Dependents Anonymous, Inc. (CoDA) Tax ID Number?

No.

The CoDA Tax ID Number, also known as the Employer Identification Number (EIN) is not for use by any other level of CoDA except the corporate level.

Why?

The Co-Dependents Anonymous, Inc. EIN is specific to the corporation of CoDA, a US corporation. Having an "umbrella" tax status would require that each group submit all the identifying information of their officers, to CoDA for the official record. In addition, CoDA would be responsible for the groups' financial reporting and financial activity. We would have to establish a system of controls over the finances of each CoDA group, intergroup/community, and Voting Entity or regional service board. We would somehow have to ensure the use of all income solely for CoDA purposes and require regular reports to some central CoDA organization which would account to tax authorities for the activities of Co-Dependents Anonymous, Inc. All of this conflicts with our Traditions of anonymity, group autonomy and our service structure. For this reason we recommend that each meeting group, intergroup/community, or Voting Entity organization assess its own need for a Tax ID # /EIN and if necessary, apply for its own.

How do we open a bank account and obtain a Tax ID Number?

Check with your local bank to find out what is required to open an account as a group, intergroup, or VE organization. In the US, a bank will usually require:

  1. A minimum balance.
  2. A copy of the group minutes taken at your business meeting that includes the name of your organization.
  3. A list of all officers of the organization and anyone else who may be a co-signer on the account, including
    1. some form of ID such as driver's license and Social Security Number on each person.
    2. Getting your group's own Tax ID Number/EIN in the U.S.
    3. To apply for a Tax ID Number/EIN, you will need to contact the IRS to request Form SS-4: The IRS does not
    4. require you to be incorporated to get a Tax ID Number/EIN. Fill in the application as a "nonprofit organization,"
    5. similar to a service organization or a hobby club. However, your state may have it's own regulations concerning
    6. when a nonprofit organization must incorporate. It's a good idea to check with a legal and/or tax professional in your
    7. state for more information.
    8. State or federal agencies may inspect your records. Examples of such records may include minutes of business
    9. meetings, any changes in officers, and financial records including receipts for rent and literature. For more regarding
    10. tax returns, see the IRS website.
    11. If you change your address after you receive your EIN you must notify the IRS of the new address. Use Form 8822,
    12. "Change of Address."

Alternatives to getting a Tax ID number/EIN for a bank account

Some groups use the social security number of the group's treasurer as the Tax ID for the group's bank account. A group may open a checking account, non-interest bearing, under the treasurer's social security number with a Doing Business As (D/B/A) name on the account (such as "Sunrise CoDA"). So long as the account earns no interest, there should be no tax consequences for the treasurer. Many meeting groups hold such a small amount of funds that they do not open a bank account at all. The group's treasurer holds the money in a coffee can or shoebox, or the group may keep the money in a locked file cabinet in their meeting location. Remember, groups pass along funds in excess of their prudent reserve to your intergroup, VE or CoDA Inc.

Tax Information

Most meeting groups either give away literature or accept voluntary donations for literature, in which case there is no concern with sales tax.

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