The Alumni Association of the University of Michigan is recognized by the IRS as a 501(c)(3) nonprofit tax-exempt organization. Clubs and affiliates are considered chartered affiliates of the Alumni Association. As chartered affiliates, the Alumni Association requires each club and affiliate to submit a general financial report annually to ensure the tax-exempt funds received by the club are being used in a manner consistent with the Alumni Association’s tax-exempt classification.

Since clubs and affiliate groups are chartered affiliates of the Alumni Association, it is recommended that they claim the group as an unincorporated community or volunteer group..

This classification means the group is:

1. A loose association of individuals acting as a single entity without strictly defined status

2. Fundraising for scholarships on behalf of U-M and that the U-M Office of Financial Aid maintains and administers those accounts

The Alumni Association does not recommend that clubs/affiliates:

1. Become a 501(c)(3) tax-exempt organization as recognized by the IRS

2. Become incorporated in your state of residence

If a club or affiliate becomes its own 501(c)(3) tax-exempt organization, it will not be covered by the Alumni Association insurance policies.