Zonta Cares, Inc., is a nonprofit organization incorporated under the laws of the State of Florida in 1997. 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. Currently the boards are the same, with the exception of the treasurers.
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.
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, to maintain the charitable status under the Internal Revenue Service, a clear delineation of the two organizations must be carefully protected and maintained.