Financial Practices

Local Support Payments

Each year, Sigma Xi distributes local support payments to all chapters that have met the requirements for good standing for the current fiscal year. The amount of local support for any particular chapter is calculated based on a combination of a uniform distribution, regardless of chapter size, and a per capita sum based on the number of active regular dues paying members in the chapter. The payments are distributed three times annually, often in combination with distributions of local dues for chapters that have their dues collected by the administrative offices.

The uniform increment for FY2021 (7/1/2020 - 6/30/2021) is US$110.97 per chapter, and the per capita amount is US$7.50 for each active regular dues paying member and $3.00 for each affiliate member. Amounts for the new fiscal year are available on September 30.

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Local Dues

Annually, Sigma Xi Finance Office will collect local dues on behalf of the chapter, if the chapter wishes Sigma Xi to do so.

Prior to the Fiscal Year start (July 1), the chapter treasurer must notify Sigma Xi Finance Office of the chapter’s wishes to collect local dues on its behalf using the form linked below.

If you have questions about collecting local dues, or you wish to have Sigma Xi collect local dues on the chapter's behalf, please contact Sigma Xi Finance at finance@sigmaxi.org.


Electronic Funds Transfer (EFT)

Chapters may provide their chapter's bank account information for use in the debiting or crediting of funds by the Sigma Xi Finance Office. If a chapter has submitted EFT authority, then Sigma Xi will electronically debit/credit any funds to/from the chapter's bank account.
 
If you have questions about EFT or wish to setup EFT, please contact Sigma Xi Finance at finance@sigmaxi.org.

IRS Compliance - 501 (c) 3 Status (May 2013)

Each Sigma Xi chapter must have its own 501(c)3 listing and tax ID or EIN number. This number is needed for chapter endowments and tax-exempt status. This permits chapters to solicit tax deductible contributions from individuals and corporations. These papers are easy to file.

Because the Society Administrative Offices do not have hierarchical control over the chapters, the IRS indicates that chapters maintain their own identity and should have independent Employer Identification Numbers (EIN). Chapters may not use the Society Tax EIN. Chapters must apply for their own chapter EIN.

The instructions provided here are fairly concise:

  • Obtain tax identification number by submitting IRS form SS4 to the Internal Revenue Service. http://www.irs.gov/pub/irs-pdf/fss4.pdf
  • Create organizing document of the Chapter. IRS publication 557 chapter 3 gives necessary information on organizations formed under tax exempt code of 501(c)3. All Sigma Xi chapters fall under 501(c)3 type of organization. Publication 557 also has a sample of organizing documents listed under Appendix (pages 77 – 80). IRS publication 557 http://www.irs.gov/pub/irs-pdf/p557.pdf
  • Chapters must check with their "State" Department of Revenue to find out about operating as a nonprofit organization within the State and its filing requirements.
  • Once the chapter is formed, it is required to file for tax exempt status within 27 months. This can be done by using IRS form 1023 available at http://www.irs.gov/pub/irs-pdf/f1023.pdf.  The user fee for chapters with annual gross receipts of $10,000 or less is $400 and $850 for chapters whose annual gross receipts is greater than $10,000. The user fee is a one-time fee and subject to change. Upon submission of the application, the IRS will determine whether the organization meets the criteria to be exempt and its annual filing requirements.

For the latest updates on revisions of various forms listed above, we advise that you contact the Internal Revenue Service center at 877-829-5500.

In addition, Tom Hard, treasurer of the Columbia-Willamette Chapter, has graciously volunteered to assist any chapter treasurer to process the simple steps to acquire a 501(c)3 number.

IRS Compliance - Annual Electronic Filing Requirement for Chapters - Form 990-N (e-Postcard)

According to the IRS, most small tax-exempt organizations (chapters) whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard , unless they choose to file a complete Form 990 or Form 990-EZ instead.

If you do not file your e-Postcard  on time, the IRS will send you a reminder notice. There is no penalty assessment for late filing the e-Postcard , but a chapter that fails to file required e-Postcards  (or information returns—Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the chapter's tax-exempt status will not take place until the filing due date of the third year.

Due Date of the e-Postcard

The e-Postcard  is due every year by the 15th day of the 5th month after the close of your tax year. The chapter cannot file the e-Postcard  until after the tax year ends.

For example, if your tax year ended on December 31, the e-Postcard is due May 15 of the following year. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. 

How to File

Use this link to file the e-Postcard.

When you access the system, you will leave the Sigma Xi site and file the e-Postcard  with the IRS. The form must be completed and filed electronically. There is no paper form.

Additional Information from the IRS.gov website: Frequently Asked Questions - e-Postcard


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