Global Compliance FAQ
Can I create a legal entity/corporation/non-profit?Back to TopNo. According to the Bylaws of Toastmasters International, Article XII: Districts, Section 3 (e) Legal Status of Districts, Divisions, and Areas, Toastmasters International does not permit regions, districts, divisions or areas to create their own legal entities because this would jeopardize our non-profit status.
Does Toastmasters International provide insurance coverage for clubs and districts?Back to TopYes. The organization provides up to 2 million in general liability insurance for all qualified Toastmasters club and district events, and meeting sites around the world. Please see the Liability Insurance page for more information.
How is Toastmasters International registered?Back to Top
Toastmasters International is registered in the United States as a 501(c)(3) non-profit corporation. Its EIN (Employer Identification Number) is 95-1300076.
How much money can a club have in its account?Back to Top
There is no limit to the amount of funds a club may have in its bank account, but there are limits regarding annual revenues.
According to Protocol 8.2, Section 1 D, it states that at least 1/3 of a club’s total annual revenues must come from dues paid by members to World Headquarters; the remaining 2/3 of revenue may come from alternate sources, such as fundraising.
For example, if a club has 20 members each paying in membership dues every six months, then it has collected $1,800 in revenues from Toastmasters membership dues (20 members X $60 X 2 yearly payments). Therefore, it could bring in an additional $3,600 in revenue from other sources.
I don’t see my country listed. When will information be posted about my country?Back to TopThe countries listed on the Global Compliance webpage are those where research has been conducted and analyzed. If you do not see your country listed, you may contact Treasury & Compliance for questions but please know this is an ongoing project and new countries will be added as research is completed and analyzed.
My company pays for our membership dues and needs to add Toastmasters International to its internal vendor database. Who do I contact for this?Back to Top
Please send your request with any required supplier forms to Treasury & Compliance.
How can a non-US club manage its funds?Back to Top
A club can use the following options to manage its funds:
- A designated club officer may open a personal checking account at a bank, which the club may use during the club officer’s term. The account should be expressly used for club funds and must not be co-mingled with personal funds.
- The club treasurer can use a physical lockbox to store club funds and pass it along to the next treasurer after each term.
If your club is sponsored by a company or organization, that company or organization may supply and manage funds in a bank account on behalf of the club.
What club records should be kept and for how long?Back to Top
Documents to keep indefinitely:
- Club Constitution for Clubs of Toastmasters International
- Addendum of Standard Club Options
- Membership applications
- Club policies
- Club charter (i.e. Forms 1-5)
- Distinguished Club Program performance reports
- Meeting minutes and attendance records
- Club rosters
- 501(c)(3) Employer Identification Number (EIN) Assignment Letter (For US Clubs only)
Up to 7 Years:
- Cancelled checks
- Bank statements
- Financial statements
Up to 3 Years:
- Internal reports (including officer and committee reports)
- Routine correspondence
Which documents and policies are most important for me to be aware of?Back to Top
The following important documents may answer your questions:
- District Administrative Bylaws
- Bylaws of Toastmasters International
- Toastmasters International Policy and Protocol
- Club Leadership Handbook
- Use of Club Funds
Who do I contact if I have any additional legal or financial questions?Back to Top
Why are more countries now being asked to pay sales taxes, Value-Added Tax (VAT), or Goods and Services Taxes (GST) on products sold by Toastmasters International?Back to Top
International tax rules are evolving as countries around the world are taxing non-resident businesses to level the competitive online landscape and to protect in-country businesses who are subject to these taxes. In recognition of this trend, Toastmasters is proactively researching tax and compliance requirements worldwide.
Toastmasters International provides as much advance notice to clubs as possible after it learns from our third-party tax consultants that GST/VAT is applicable in a particular country.
Will more countries be subject to VAT/GST in the foreseeable future?Back to Top
Third-party tax consultants are researching tax jurisdictions around the world to determine if VAT/GST is required to be charged, and if so, which products it applies to. As this research identifies additional countries where VAT/GST applies, the organization will charge these taxes as required by law.
How will the tax be collected and paid to each specific country’s government?Back to Top
Toastmasters International is already registered as a GST/VAT entity in those countries where these taxes are currently collected. GST/VAT will be collected at the time of each order. The organization utilizes a third-party company that files the necessary returns and remits GST/VAT to the appropriate country’s government agency.
How will this new tax requirement affect membership dues?Back to Top
Our tax consultants have researched local VAT/GST laws and have confirmed which of Toastmasters International’s products are subject to tax. In some countries, GST/VAT applies to membership dues. In these countries, membership dues remain at $60 USD every six (6) months and the GST/VAT is a separate charge at check out, in addition to membership dues, that does not impact the actual cost of membership dues. VAT/GST is not a fee assessed by Toastmasters, rather it is imposed by individual countries and remitted to their governmental agency.
Will District leaders or club officers have any additional responsibilities to collect VAT or GST?Back to Top
No. Applicable VAT/GST taxes are charged at the time of order and collected by Toastmasters International. All tax filings are the responsibility of Toastmasters International.
For clubs that have members who reside outside of the club’s country, will those members be exempt from GST/VAT?Back to Top
GST/VAT laws are country specific. Members will be charged GST/VAT based on their address of record and the tax laws applicable to their country, not that of their club(s).
Are local club fees also subject to VAT/GST?Back to Top
Toastmasters International only charges VAT/GST on membership dues paid to World Headquarters. Additional club fees billed locally are subject to the club’s local laws and regulations as appropriate but are not tracked or assessed by Toastmasters International.
To collect VAT/GST in most countries, you must have a registered VAT/GST number in that country. Is Toastmasters International officially registered in my country as a tax relevant entity?Back to Top
Toastmasters International is registered and has the appropriate VAT/GST numbers for each country in which it charges taxes. The VAT/GST numbers assigned to the organization are only authorized to be used by Toastmasters International and not clubs, areas, Divisions, or Districts. Toastmasters International remits VAT/GST tax to the appropriate government while using this VAT/GST number.
How can Club Treasurers prove to tax authorities that VAT has been paid?Back to Top
VAT is collected by Toastmasters International at the time of order and a receipt is provided at that time to show tax paid. The organization utilizes a third-party company that files the necessary returns and remits VAT to the appropriate government agency.
Is Speechcraft considered a digital product or an educational material for tax purposes?Back to Top
Speechcraft is considered an educational product for tax purposes.