Zonta Cares, Inc., is a nonprofit organization incorporated under the laws of the State of Florida in 1997, under the leadership of Zonta president Gay Harper. Also in 1997, Zonta Cares, Inc., was approved by the Internal Revenue Service as a charitable 501(c) (3) group. This means contributions to Zonta Cares, Inc., may be tax-deductible.
Zonta Club of Tallahassee is a membership organization that is not incorporated as nonprofit and is not a charitable group. Contributions to Zonta Club of Tallahassee are not tax-deductible as charitable contributions, in part because it is involved in political advocacy.
The two organizations are legally separate. They have different functions, different membership, and must maintain totally separate books and minutes.
Decisions about Zonta Cares, Inc., funds, budget, and expenditures are made solely by the Zonta Cares board. Expenditures are limited by the IRS application and laws to service projects, other charitable groups and for necessary activities to maintain Zonta Cares (for example, accounting fees, postage, fundraising expenses). No funds may be expended for advocacy. (For example, funds cannot be used to support ERA or other political positions.)
How are the two groups related? Legally, they are two separate organizations, although according to the Zonta Cares bylaws, members of the Zonta Cares board must be members of Zonta Club of Tallahassee. Most of the original members of Zonta Cares were the officers of the board of Zonta Club of Tallahassee at that time. Each year, the outgoing board of Zonta Cares elects the incoming board of Zonta Cares. Sometimes, there has been overlap with the Zonta Club board, with the exception of the Treasurer, who has always been a different person. During the past two cycles, there have been less overlap between the two boards.
Money: The two groups have completely different ways of raising money. Zonta Club of Tallahassee is a dues-based organization, although it also uses raffles and other methods to raise money. Zonta Cares obtains money through fundraising activities, such as theatre evenings by Zonta Club members, sales, raffles, and seeking donations.
How does Zonta Cares decide how to spend the money it raises? The Zonta Cares board has the sole decision making authority, under its legal requirements. It may take requests and recommendations from any source. In practice, if the Zonta Club of Tallahassee has projects or any other items it would like to suggest to Zonta Cares, it does so, based on a vote of the Zonta Club of Tallahassee board. However, only the Zonta Cares board may actually make the decision to spend the money from the Zonta Cares treasury. The Zonta Cares board has a fiduciary responsibility to its donors to see that the funds are expended properly, in accordance with all legal requirements, so that their tax requirements are properly protected. To my knowledge, the only projects or items funded have been those requested by Zonta Club of Tallahassee.
No individual on the Zonta Cares board may make an independent decision to authorize expenditures—expenditures may only be approved by a vote of the Zonta Cares board or under a budget adopted by the Zonta Cares board.
Originally, Zonta Cares, Inc., was created to pay for service projects. More recently, items other than service projects are considered for Zonta Cares funding. Examples of such funding have included contributions to Zonta International charitable projects, as well as donations to charities selected by speakers. Use of Zonta Cares, Inc., funds for such items means that Zonta Club does not have to cover such items through dues.
Only a member of the Zonta Cares board may actually move adoption of expenditures from Zonta Cares funds.
Historically, there has been a great deal of cooperation between the two separate organizations, and Zonta Cares board members are keenly aware of the trust they hold. However, it must be clear that to maintain the charitable status under the Internal Revenue Service, a clear delineation of the two organizations must be carefully protected and maintained.
Mary Anne Price
August 23, 2007
Revised September 3, 2009