Group Tax Exemption Program (GTEP)

To qualify a club or district, which may or may not be incorporated, must:
1. Be affiliated with and carry out the mission of CGCI. If the club is a member of CGCI, this is already true. To have been ratified as a member of CGCI, a club must have one or more objectives in common. This is also true for districts.
2. Be subject to CGCI’s general supervision and control. As a member of CGCI, this is already true. CGCI is an affiliation of clubs governed by representatives of member clubs who vote at an annual Convention to elect the directors of CGCI and to decide issues.
3. Be exempt under the same paragraph of IRS 50l(c)(3) as CGCI. In other words, a club or district must qualify for tax exemption as an educational and charitable organization, having objectives and activities that are the same as those of CGCI. The MAJORITY of activities must be educational. (Flower shows, speakers, tours, etc. are all “educational” activities.) As part of the application process clubs and districts are required to submit a financial report and an activities report which verify the majority of their activities are educational.
4. Have club or district bylaws which include the required and very specific language required by the IRS.
5. Have bylaws that mirror those of CGCI
6. Have an accounting period the same as that of CGCI, July 1-June 30
7. Are in good standing with the IRS and California FTB and have not been revoked for failure to file the required annual informational re ­ turns in a timely manner, or any other reason.
California law requires registration with the Attorney General’s Registry of Charitable Trusts. Whether a GTEP member or not, each club or district must separately report to the Registry of Charitable Trusts annually. Contact the GTEP Chairman for complete information.

Annual renewal as a member of GTEP is required each year. Once a club or district has been ratified as a member of the CGCI GTEP, it is necessary that they submit the Annual GTEP Renewal Form and the required support documentation. The annual renewal form must be and submitted along with other required paperwork as noted below by February first of each year. Make checks payable to CGCI and mail to the GTEP Chairman. Note: If post-marked after February first an additional $15 late processing fee is in effect.
To complete the annual renewal process, member clubs and districts must:
A. Have an authorized officer, president, director or treasurer, of the club or district give permission on the appropriate form IN WRITING annually, that states they wish to continue to be included in the GTEP program for the next fiscal year.
B. Provide an activities report for the most recently completed fiscal year showing that the majority of that year’s activities were educational.
C. Provide an annual financial report for the most recently completed fiscal year in the form of a profit and loss statement, which shows actual gross receipts (income) and expenditures (expenses) classified by budget categories or other descriptive classifications.
The form with a detailed description of the requirements is emailed to clubs and districts annually in September or October. The information is also available on the CGCI website.

California law requires registration with the California FTB and the Attorney General’s Registry of Charitable Trusts. Completing the GTEP process allows CGCI to register the district or club with the California FTB. However, each group must separately report to the Registry of Charitable Trusts annually.