Taxes & Tax Reporting
Delta Mu Delta Honor Society, DMD, is a 501(c)(3) not-for profit corporation. Incorporated in the Commonwealth of Pennsylvania in 1952, DMD maintains a corporate registration in that state.
In 1972 DMD applied for and received from IRS its tax-exempt status and in 1973 applied for and established a Group Exemption for all of its registered chapters.
Within the text that follows, the word "chapter" applies equally to stand-alone chapters and to co-chapters within the DMD charter given to an education institution. Establishment of either is subject to the procedures and guidelines administered by Central Office on behalf of the Society.
Dissolution of a chapter is controlled by Article XIV of the Chapter Bylaws. The relevant Article is quoted here:
| Upon dissolution of the chapter, or withdrawal of its charter by the National Chapter, all assets of the Chapter remaining after all liabilities have been paid, all materials bearing the Delta Mu Delta insignia, and all books and records of the chapter, shall be sent to the Central Office and become the property of Delta Mu Delta. |
Every established USA chapter is registered with IRS by Central Office with its individual FEIN under the Society's Group Code. All chapters are registered with the address of Central Office which handles any and all tax correspondence for chapters within our Group.
Lifetime membership is in the Society, not the chapter and most chapters have no annual dues. If they do, the latter becomes chapter income. Likewise any funds collected for events or regalia (whether sold at cost or marked up) are chapter income. Chapter income is subject to the local test of $25,000, soon to be raised by IRS to $50,000. To date, no chapter has ever been required to file its own 990.
Annually, the Society files a 990 (available on the web) with IRS after the close of our fiscal year that recognizes all Society income, which includes all life-time membership fees collected by the chapters as agents of the Society and remitted to Central Office.
Annually, due 90 days before the end of our fiscal year, the Society files a Group Annual Report (web availability unknown) to the IRS that lists all active chapters, reporting any chapters no longer included under the umbrella of our Group Code and listing any additions not contained in the report that IRS submits to DMD for audit.
Annually, all chapters are required to file both an Annual Report and a Financial Statement with Central Office - failure to do so can result in the chapter becoming deactivated.
Annually, the Society files individual 990-N's for every chapter within its Group Code.
IRS has shown no interest in chapters outside of the USA and its territories, so such chapters, while considered part of our Society, are not included in the IRS Group Report.
Any questions may be sent to the Executive Director: dmd@deltamudelta.org
