River Valleys troops, service units, and volunteers are required to adhere to all applicable state and federal tax laws and policies, as well as those put in place by River Valleys council and Girl Scouts of the USA.
Standards
- Girl Scouts River Valleys is a nonprofit corporation holding 501(c)(3) status as determined by the Internal Revenue Service of the United States Government.
- 501(c)(3) status exempts River Valleys from federal income taxes at the council, service unit, and troop levels.
- River Valleys is also exempt from state income taxes.
- All money raised or earned, and other assets received in the name of or for the benefit of Girl Scouts must be authorized by a Girl Scout council (or GSUSA) and used for the purposes of Girl Scouting. These assets or money are not the property of individuals, units, or communities within a Girl Scout council.
- Service units, troops and groups are subordinate units of River Valleys.
- Subordinate units are not separate legal entities and have no independent existence for tax purposes.
- River Valleys troops, service units and groups should not have their own Federal Employer Identification Number (FEIN).
- Troops, service units and groups are required to use River Valleys’ Federal Employer Identification Number (FEIN) when opening bank accounts.
- Doing so exempts any interest earned on the account balance from income taxes.
- Estimates of the bank accounts opened by troops, service units and groups are included on River Valleys’ financial statements as an asset and liability.
- River Valleys is exempt from paying Minnesota and Wisconsin sales and use taxes.
- Purchases not included in the sales tax exemption are prepared food, soft drinks, candy, catered food, lodging, rentals of most motor vehicles, 9.2% car rental tax and 5% car rental fee.
- Current River Valleys volunteers in good standing may use River Valleys’ sales tax exemption to purchase Girl Scout-related program supplies at third-party retailers.
- Purchases must be used for activities that promote and further River Valleys’ mission.
- When purchases are made for activities that promote and further River Valleys’ mission, volunteers are making purchases as River Valleys or on behalf of River Valleys.
- Purchases made for the benefit of a specific person (gifts, badges, patches, etc.) are not eligible for sales tax exemption.
- Purchases must be paid for with the troop’s, service unit’s, or group’s bank account.
- An individual using their personal bank account/credit card to purchase program supplies and receive reimbursement cannot utilize River Valleys’ sales tax exemption.
- The Minnesota/Wisconsin Department of Revenue does not allow River Valleys’ sales tax exemption to be used by volunteers or other Girl Scout members for personal purchases, or for use by an organization other than River Valleys.
- Purchases must be used for activities that promote and further River Valleys’ mission.
- Girl Scout volunteers may not use the council’s sales tax exemption for purchases made at River Valleys’ retail shops.