Policy Memo (23.68 KB)
| DATE: | February 6, 1996 |
| SUBJECT: | Criteria for Sponsoring Organizations under the Child and Adult Care Food Program (CACFP) Exempt Organizations Handbook, Section 34 (14) |
| TO: | Regional Directors Child Nutrition Programs Special Nutrition Programs |
On Oct. 10, 1995, we transmitted questions to the Internal Revenue Service (IRS) regarding concerns raised by state administrators of the CACFP and re-emphasized by the state and Federal representatives at the September 1995, CACFP Initiative Task Force meeting held here at headquarters. These concerns related to the recent revision to the criteria for granting tax exemption to sponsoring organizations of family day care homes from the IRS’s Exempt Organizations Handbook (EOH) Section 34(14). The attachment repeats our questions to IRS and their response to those questions. We believe that IRS’s answers are fairly straightforward, and we trust that this information will be helpful when answering common questions from current and prospective sponsors.
Frances F. Zorn
Acting Director
Child Nutrition Division