4-H Money Basics

Tax Exempt Status

As the central organization for the Colorado 4-H Group Exemption (GEN 5947), the Colorado 4-H Foundation, along with the Internal Revenue Service (IRS) have determined that Colorado chartered 4-H clubs and groups under the control of Extension are eligible for inclusion as a subsidiary of the Colorado 4-H Foundation exemption from federal income tax under the provisions which correspond to section 501(c)(3) of the IRS Code. This means that:

  • Formally authorized (state chartered) 4-H groups are exempt from paying federal income tax on funds on behalf of 4-H; and
  • Donors may deduct contributions to 4-H clubs and groups as applicable under IRS Code.

4-H Funds, Facts:

In seeking private support for 4-H programs through fundraising, state and local Extension officials must insure that the funds are given and used in accordance with Title 7 of the Code of Federal Regulations and USDA Guidelines pertaining to the 4-H program. Critical elements include:

  • Fundraising programs may be carried out for specific educational purposes and must have the approval of the state and local Extension office.
  • All moneys received from 4-H fundraising, except those necessary to pay reasonable expenses must be expended to further the 4-H educational programs.
  • Private support moneys should be given and used for priority educational purposes, and accounted for efficiently and fully.

4-H Money = Public Funds

  • A Colorado 4-H Charter is the only document that officially recognizes a 4‐H Club or Group and authorizes their use of the 4‐H Name and Emblem to conduct 4‐H Youth Development programs.
  • All money received by a 4‐H Club or Group is public money because 4‐H is a public organization.
  • Federal regulations governing the continued use of the 4‐H Name and Emblem require annual financial reporting and accountability.
  • Funds raised in the name of 4‐H must be publicly accountable and must be used for 4‐H educational purposes.
  • All moneys received from 4‐H fund raising programs, except those necessary to pay reasonable expenses, must be expended to further the 4-H educational program.
  • The 4‐H treasurer and Club Organizational Leaders are responsible to all members, leaders, the 4‐H Youth Development agent, and the public.
  • CSU Extension has oversight for 4‐H programmatic and financial accountability.

Guidelines for Use of 4-H Funds

  • Money raised in the name of 4‐H must be used for 4‐H educational purposes.
  • Fund raising should only be conducted to meet a specific 4‐H Club or Group educational goal.
  • Funds raised in the name of 4-H may not be used for non-tax-exempt purposes. (For example, families in need, memorial funds, etc.)
  • 4-H Clubs and Groups may not make financial donations to other organizations. We need to build our own financial well-being to support the learning agenda for members.
  • 4-H Clubs and Groups must practice financial policies that retain their nonprofit status and prevents them from falling into a private foundation status with the IRS. Generally, money raised during the 4-H year should be spent that same year.