Tax Exempt Status for Summer Food Service

The purpose of this instruction is to clarify our position on tax-exempt status for Summer Food Service Program sires.

Regulations do nor require that sires obtain tax-exempt status from the Infernal Revenue Service because numerous sires such as parks, storefronts and recreational programs would not be eligible for such status. However, the intent of the Program's authorizing statute is to provide funding for meals served by public or private, nonprofit entitles that meet program eligibility requirements. Therefore, any sire, especially a residential camp, which may be identified as profit-making may nor participate. Further, if there is any indication that a sire might nor meet the nonprofit status requirement (e.g., through organizational structure), that site may not participate until nonprofit status is clearly established.

Samuel P. Bauer
Director
Child Nutrition Division