U.S. Based Guilds: Application for 501(c)(3) Status

After you pay your MQG dues for the first time, you will apply for inclusion in the MQG group exemption 501(c)(3) status. 

Checklist for U.S. Group Exemption Application

You will need: 

• Your Guild’s federal employer identification number
• Your Guild’s official name and address
• A board of directors of no less than three unrelated individuals on an annual basis. 
• A set of bylaws to govern your Guild, that conform to the Modern Quilt Guild’s sample bylaws 

The application includes agreeing to:

• A statement that your Guild is not a private foundation
• A statement that your Guild has not previously applied and been rejected for tax-exempt status.
• A statement that your Guild agrees to abide by the policies set forth by the Modern Quilt Guild, Inc. and the IRS tax-exempt organizations
• A statement that “No substantial part of the activities of your Guild shall be to carry on propaganda, or otherwise attempt to influence legislation. The Guild or event MAY NOT participate in or intervene in any political campaign on behalf of any candidate for public office.”

Upon receipt of the application, bylaws, and EIN copy, you will receive a confirmation letter stating that your Guild is exempt from federal tax under our group exemption. You will also receive a copy of the Modern Quilt Guild Inc.’s federal nonprofit determination letter for your records. Your Guild may use both letters to demonstrate tax exemption when working with local governmental agencies or corporate entities.The group exemption does not apply to state or local taxes. Each guild must review the tax requirements of its state and comply with those tax requirements. Make sure to inquire about your state’s tax exemption filing requirements and sales tax exemption rules.