A homeschool leader, Michele in Colorado, asks,
We will have less than $100 left in the check book. We have a Fed ID #. What do we do? What about next year?
You did the right thing by getting a tax ID number. I hope you also have a separate checking account in the group’s name. There isn’t really a lot to do except leave the $100 in the account to use for next year. If your group does not exist next year (or closes at some future date), donate the leftover money to a charity or another homeschool group. Or you can have a party for the entire group with the leftover money. It would not be proper to give the money back to the individual members.
If you have a lot of surplus cash, you need to investigate filing for 501c3 tax exempt status, so that your group can avoid paying income tax on your surplus. Start by reading these articles on my website:
Are you ready for 501c3 Application?
Carol Topp, CPA
