Texas Master Gardener ProgramVolunteers Supporting the Texas A&M AgriLife Extension Service since 1978

Group Exemption Information

 

Information Needed from County Master Gardener Associations to be Included Under the Texas Master Gardener Association 501(c)3 Group Exemption

Information for Exemption

County Master Gardener Associations which generate revenue and disperse funds can benefit significantly from non-profit status. The Internal Revenue Service can grant a 501(c)(3) non- profit status to organizations, such as Master Gardener Associations. This can be a costly and lengthy process. Benefits of 501(c)(3) status include the ability to accept grants and tax-deductible contributions as well as a tax-exempt status on revenue.

The Texas Master Gardener Association (TMGA) offers to serve as an umbrella non-profit organization or Central Organization for the County Master Gardener Associations that are members of the Association. TMGA will keep a current list of all Subordinate Organizations, which choose to participate and choose to be covered under TMGA’s 501(c)(3) status. As of January 1, 2019, IRS stopped mailing lists of parent and subsidiary accounts to central organizations (group ruling holders) for verification and return. Central organizations must still comply with the annual reporting requirements in Section 6 of Revenue Procedure 80-27. As noted in the revenue procedure, the required information must be submitted at least 90 days before the close of the central organization’s annual accounting period, which is December 31st. The required information includes the names, addresses, and employer identification numbers of subordinate organizations that have terminated, disaffiliated from the group, been added to the group, or changed names or addresses. Therefore, it is very important that subordinate Associations that have lost their exemption due to non-filing of their 990s, that no longer wish to be under the TMGA umbrella, that wish to be added, or that have a name change submit this information as soon as possible to TMGA. County Master Gardener Associations, which currently have 501(c)(3) status can participate in this program without additional restrictions or benefits, however they would have to state that they now want to participate in the state group exemption and lose their individual exemption. County Associations can simply choose not to participate. (Your Association must be a TMGA member in good standing to participate in the group exemption).

Information Needed from Participating Counties

To be included in the group exemption letter establishing 501(c)(3) status for a County Association, the following information must be provided to TMGA. The documents and information listed will be included in the initial application to the IRS.

  1. Description of the purposes and activities of the County This is probably the mission statement or purpose included in the Association bylaws.
  1. Copy of the governing document. If the Association is a corporation, this would be the Charter and Articles of Incorporation. For unincorporated Associations, this would be the Articles of Association or Association A copy of the signed original Charter or original Association Bylaws must be sent with the application package. If a signed copy is not available, attach a statement indicating that these are the original by-laws and have two current officers sign the statement. A copy of your current bylaws, signed by at least two officers, should also be included. The current bylaws must contain the 501(c)(3) language or equivalent wordage that is listed below.

501(c)(3) Language to be included in your bylaws

Under Goals; Organization; Objectives (The one your Association uses)

“The Association is organized as a non-profit within the meaning of section 501(c)(3) of the Internal Revue Code exclusively for horticulture educational and charitable purposes and in support of the Texas A&M AgriLife Extension programs.”

Under Dissolution

“Upon the dissolution of the organization, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Any such asset not disposed of shall be disposed of by the court of the county in which the principal office of the organization is then located, exclusively for such purposes or to such organization or organizations, as said Court shall determine, which are organized and operated exclusively for such purposes.”

If you wish, you can designate whichever 501(c)(3) organization is in your county, 4H or the AgriLife Extension Service, or any other organization so long as it is a 501(c)(3) approved entity. 

  1. A letter addressed to TMGA, signed by an authorized person of the County Association, stating the Association’s desire to be included in the group exemption letter.
  2. A letter addressed to TMGA, signed by an authorized person of the County Association, stating that the County Association is NOT a private foundation.

A private foundation’s sole purpose is to provide funding, not services; County Associations provide services/education. (NOTE: this can be included in letter above.)

  1. In the letter include the following: name of County Association, mailing addresses, actual/physical addresses (if different), and EIN (Employer Identification Number or Federal Taxpayer ID Number) of Association. Do not use the County Extension EIN. You must obtain your own number. E-mail the letter to the State Master Gardener Coordinator Jayla Fry.

If the County Association does not have an EIN, the Association should obtain an EIN by submitting a SS-4 Form to the IRS. For more information access: http://www.irs.gov. The SS-4 Form can be submitted online or via the telephone, which results in securing an EIN immediately. On the form SS-4, type of entity is Other Nonprofit organization. The closing month of the accounting year must conform with that of TMGA which is the calendar year which ends Dec 31st.

County Associations are responsible for filing annual revenue forms (990, 990-EZ, 990-N) required by the IRS.

TMGA Responsibilities

There are documents that are required to be submitted by the Central Organization/TMGA with the application for the group exemption letter. The documents/information include:

  1. The EIN for TMGA.
  1. Date of the IRS letter recognizing its exemption, and the IRS office that issued the letter.
  1. A copy of the Article of Incorporation and Bylaws, and any amendments to these governing documents. In addition, include information about any changes in TMGA’s character, purpose, or method of operation.
  1. Letter from TMGA President stating that, all County Associations affiliating with TMGA, are subject to TMGA’s general supervision regarding inclusion in the group exemption and that all County Associations are eligible to qualify for exemption under which TMGA is exempt. The TMGA officer would affirm that, to the best of their knowledge, a) the purposes and activities of the County Associations are as stated by each of them, and b) no County Association is a private foundation.
  1. List of County Associations to be included in the group exemption letter to which the IRS has issued an outstanding ruling or determination letter relating to exemption.
  1. Annual submit an update to the IRS with a separate list of each:
      • Subordinates that have changed their names or address during the year.
      • Subordinates no longer to be included in the group exemption letter because they have ceased to exist, disaffiliated or withdrawn their authorization to the central organization; and because they are newly organized or affiliated.
      • Subordinates are to be added to the group exemption letter because they are newly organized or affiliated or have newly authorized the central organization to include them.

Prepared by:

Wayne Rhoden, January 17, 2011
Updated by Elisabeth Castro  2025-2026