II. IRS Tax Reporting Requirements

On December 20, 2007, the IRS released a redesigned Form 990, Return of Organization Exempt from Income Tax, for tax year 2008 (to be filed in 2009 and later years). The redesign of Form 990 is based on three guiding principles: enhancing transparency, promoting tax compliance, and minimizing the burden on the filing organization. The form is available on the IRS website at www.irs.gov/eo. The 2008 Form 990 includes a core form and 16 schedules which are to be completed only by those organizations that engage in activities for which the reporting is required:

• Schedule A – Public Charity Status and Public Support
• Schedule B – Schedule of Contributors
• Schedule C – Political Campaign and Lobbying Activities
• Schedule D – Supplemental Financial Statements
• Schedule E – Schools
• Schedule F – Statement of Activities Outside the United States
• Schedule G – Supplemental Information Regarding Fundraising or Gaming Activities
• Schedule H – Hospitals
• Schedule I – Supplemental Information on Grants and other Assistance to Organizations, Governments and Individuals in the United States
• Schedule J – Compensation Information
• Schedule K – Supplemental Information on Tax-Exempt Bonds
• Schedule L – Transactions with Interested Persons
• Schedule M – Non-Cash Contributions
• Schedule N – Liquidation, Termination, Dissolution, or Significant Disposition of Assets
• Schedule O – Supplemental Information to Form 990
• Schedule R – Related Organizations and Unrelated Partnerships

Note: The revised Form 990 includes a new section on governance. The information requested is not required by federal tax law, but indicates the current IRS focus on improving non-profit governance (see Announcement #1 below). Councils should consider implementing policies and practices to align with these issues, considering council size, culture and adequacy of existing policies and procedures. This section is not included in Form 990EZ or Form 990N.

During a three year transition period, organizations required to file Form 990 are those with the following gross receipts or assets:

Tax Year 2008 – Gross receipts of $1,000,000 or assets of $2.5 million or more
Tax Year 2009 – Gross receipts of $500,000 or assets of $1.25 million or more
Tax Year 2010 and beyond – Gross receipts of $200,000 or assets of $500,000 or more
The “short form”, Form 990EZ, also has transition thresholds for filing
Tax Year 2008 and 2009 – Gross receipts over $25,000, but not above the levels listed above for gross receipts or assets
Tax Year 2010 forward – Gross receipts over $50,000 and less than $200,000 with assets less than $500,000
Schedules A, B, C, E, G, L and N may be required in a Form 990EZ filing, as appropriate.

Councils with gross receipts or assets below the thresholds for Form 990EZ should continue to file Form 990N online.

The new schedules listed above are effective for Tax Year 2008 forward and are filed with either Form 990 or 990EZ, as appropriate.

III. Legislative Affairs

UPDATE ON OUR LEGISLATIVE AFFAIRS GRASS ROOTS PROGRAM
By Dan Branch, National Vice President, Legislative Affairs

The national legislative affairs team recommended in August 2008 that National President Mike McGrath send periodic letters over his signature to Members of Congress (MOC) as a supplement to our Grass Roots MOC visit efforts. These letters enable us to reach MOCs that we have not already visited with key messages such as the decline in the Navy’s fleet size. For MOCs we have already visited, such letters reinforce the message. As previously announced, President McGrath sent his first such MOC letter in September 2008 and sent his second letter to all MOCs January 15, 2009. The second letter continued the fleet size message from the earlier letter and recommended using some of the new administration’s proposed public works funding to support key Navy and Coast Guard needs such as shipbuilding infrastructure and military construction projects. That letter was entitled Public Works Funding for Military Construction and the Shipbuilding Industrial Base.

On the subject of important letters, forty-three Members of Congress recently sent President Obama a letter urging him to provide substantially increased funding for the sea services. In reading the letter, one notes many similarities in the wording with the Grass Roots presentations and other materials that we have been providing to MOCs as part of the Grass Roots effort. The Grass Roots visits by our members, supplemented by the National President’s letters, are clearly making a difference. On the February 1, 2009 Meet the Press TV Program, Senator Kay Bailey Hutchinson specifically recommended that Military Construction Projects receive increased funding as part of the President’s Stimulus Package. The Military has a long range program in place and many of the projects are already planned.

In most cases, we recommend that Senator and Representative visits be conducted in the local offices. However, making the presentations in Washington has worked well for some regions. As a reminder, if you plan to attend the Navy League National meeting in Washington during June 11-13, 2009, this period may provide a good opportunity to call on your Representative or Senator to give the current Grass Roots presentation. To learn how you may become involved, please contact your Region Vice President (RVP) of Legislative Affairs to express your interest.. For those new to the program, a short training program will be given in advance by Bill Waylett to get you ready to make a presentation. RVP email addresses are:

   You may also contact Jim Bras, Chairman of the Legislative Affairs Committee, at jimbras@earthlink.net or Dan Branch, National Vice President, Legislative Affairs at dbranchjr@aol.com to volunteer to make presentations to Members of Congress. Volunteers currently engaged in the program continue to report that making presentations to our Congressmen is interesting and enjoyable, and that the Navy League’s message is very well received and much appreciated.

IV. Development

Support Your Navy League

As you know, the Navy League is in real need of your financial support. Your donations are critical to our operation. We are working hard to solicit additional funding to execute our mission; but we also depend on the generosity of our members. Please consider writing a check today made out to the Navy League of the United States and send it to Julie Beaver; Navy League of the United States; Ref. CA; 2300 Wilson Boulevard, Suite 200; Arlington, VA 22201. Thank you very much for your support and loyalty.

V. Public Relations

New "Navy Week" Website
The Navy League has partnered with Navy Office of Community Outreach (NAVCO) to develop NavyWeek.org - a new website that features Navy Week activities around the nation. The site provides general information about NAVCO, the Navy Week program, a calendar of activites in host cities, social networking tools such as YouTube, Facebook and Flickr, as well as links to Navy Week host city sites, the Navy League website and SEAPOWER.

Navy Week is a great COMREL opportunity for Councils to get involved in their communities and show their support for our Navy men and women. NavyWeek.org is intended to expand the visibility of the program as well as to recognize the program's partners and supporters in each city using dynamic web communication features that are somewhat restricted when using a military domain website.

Councils interested in getting involved in Navy Week or have Navy Week acitivities to highlight on NavyWeek.org, should contact NAVCO Deputy Director LCDR Lisa Braun at:

Navy Office of Community Outreach
5722 Integrity Dr Bldg 456-3
Millington, TN 38054
(901) 874-5801
Fax: (901) 874-5814
lisa.braun@navy.mil
www.navy.mil/navco
www.navyweek.org

Since several of our Councils are also involved in Fleet Week activities, we are working with NAVCO to address including that information on the website.

Mackie Newsletter Award Submissions – DEADLINE March 31st
Councils are reminded that the deadline for submitting newsletters for the Mackie Newsletter Award 2008 competition is March 31st.  Click here for details on the competition.

http://www.navyleague.org/public_relations/mackie_awards_instructions.php

Nineteen websites were submitted for the Mackie Website Award 2008 competition.  The results of that competition will be announced along with the newsletter competition results in June. 

Public Relations Recognition Program – DEADLINE March 31st
Council submissions for the 2008 Public Relations Recognition Program are also due March 31st. 
Click here for details and to download the Activities Report form.

http://www.navyleague.org/public_relations/recognition_program.php

VI. Membership

Member Services support email:  service@navyleague.org

Navy League website:  http://www.navyleague.org

SEAPOWER -- digital edition: http://www.seapower-digital.com/seapower/seapower_sample/