IRS Information

Please pay particular attention to the paragraph on Tax Deductible Status, as it has been revised to provide information about the non-deductibility of fundraising solicitations and dues as a charitable contribution. This is an issue that is unclear to many Rotarians. Please make sure that all Rotary clubs located in the United States understand that their dues and any donations they receive for their club are not tax deductible.

 
If a donation is made directly to The Rotary Foundation, that donation is tax deductible. This is due to the fact that The Rotary Foundation has obtained tax exemption under Section 501(c)(3) of the Internal Revenue Code. The Rotary Foundation is a separate entity from Rotary International. Rotary International and all of its clubs and districts are exempt from federal income tax only under Section 501(c)(4) of the Internal Revenue Code.
 
Membership dues may be deductible as a business expense for some Rotarians, and contributions to any club/district's charitable fund that has obtained tax exemption under Section 501(c)(3) may be deductible as a charitable contribution. Please check state laws for more information on this topic.
 
It is also important to note that any clubs with gross receipts of US$100,000 or more should include a statement about this on their dues statements to their members.