[gentoo-trustees] Bylaws & 501(c)(3) filing

[gentoo-trustees] Bylaws & 501(c)(3) filing

[Corey Shields]

We need to start coming up with the bylaws for official membership.  As long 
as the bylaws that we come up with are restrictive enough, we can design it 
such that the membership is not overcome by a corporation as was feared 
before.  As long as we do this within the bylaws, then we can still file for 
a 501(c)(3).  This would be most beneficial over any other 501(c) filing, 
since donations would be tax deductable.  This may not mean much to the 
person donation $10 or $50, but in the future if some corporation wanted to 
donate $10k, $20k, etc..  then it will mean a lot to them.  Major RFC here..

Before we can file for this we need an Employer ID Number (EIN), which I have 
mentioned before.  This is a simple form (IRS Form SS-4), and if none of you 
mind I can go ahead and get that filed.

Cheers!

-Corey

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Corey Shields - Gentoo Linux Infrastructure Team
http://www.gentoo.org/~cshields

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Re: [gentoo-trustees] Bylaws & 501(c)(3) filing

[Deedra Waters]

I thought we were filing for 501c6? As I recall, that's what we were set up to do?


On Tue, 29 Jun 2004, Corey Shields wrote:

> Date: Tue, 29 Jun 2004 16:42:49 -0500
> From: Corey Shields <cshields@gentoo.org>
> Reply-To: gentoo-trustees@lists.gentoo.org
> To: gentoo-trustees@lists.gentoo.org
> Subject: [gentoo-trustees] Bylaws & 501(c)(3) filing
> 
> 
> We need to start coming up with the bylaws for official membership.  As long 
> as the bylaws that we come up with are restrictive enough, we can design it 
> such that the membership is not overcome by a corporation as was feared 
> before.  As long as we do this within the bylaws, then we can still file for 
> a 501(c)(3).  This would be most beneficial over any other 501(c) filing, 
> since donations would be tax deductable.  This may not mean much to the 
> person donation $10 or $50, but in the future if some corporation wanted to 
> donate $10k, $20k, etc..  then it will mean a lot to them.  Major RFC here..
> 
> Before we can file for this we need an Employer ID Number (EIN), which I have 
> mentioned before.  This is a simple form (IRS Form SS-4), and if none of you 
> mind I can go ahead and get that filed.
> 
> Cheers!
> 
> -Corey
> 
> 

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Gentoo Linux: dmwaters@gentoo.org
http://www.gentoo.org

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Re: [gentoo-trustees] Bylaws & 501(c)(3) filing

[Nicholas Jones]

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> I thought we were filing for 501c6?
> As I recall, that's what we were set up to do?

That is what Daniel began the filings for, yes.

c6 is a trade association, while c3 is a charity or something
to that effect. The trade associate does not have any tax
benefit for donations and thus doesn't lend to much interest
in massive donations. The ability to write off a product at
it's marketed price for tax purposes is nice.

I believe the reasons Daniel stated for getting C6 as opposed
to C3 was that it is more legitimate. There are a lot of filing
for C3 status that are not legitimate, but do get approved
even without being a for-charity association.

Seeking more legal opinion on our chances of this is WELL
worth the cost, in my opinion. We are _far_ more legitimate
than many of the types of groups that are appoved of regularly.
Strictly speaking, Gentoo isn't a charity, but if we are
approved and don't pose a for the status to be removed
from us, I don't see a problem with it.

--NJ



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Re: [gentoo-trustees] Bylaws & 501(c)(3) filing

[Deedra Waters]

speaking from some experience in dealing with freenode which is a 501c3, when it comes to large donations, it tends to present a lot of problems, especially if the donations are a regular thing. You can fail certain tests if the donation makes up so much of your incom, among other things. I don't really know all of the details behind it, but this particular topic came up a while back when I was talking to lilo about donations.

Carpaski is right, this is something I think should be braught up with a lawyer.


On Tue, 29 Jun 2004, Nicholas Jones wrote:

> Date: Tue, 29 Jun 2004 17:43:46 -0500
> From: Nicholas Jones <carpaski@gentoo.org>
> Reply-To: gentoo-trustees@lists.gentoo.org
> To: gentoo-trustees@lists.gentoo.org
> Subject: Re: [gentoo-trustees] Bylaws & 501(c)(3) filing
> 
> 
> > I thought we were filing for 501c6?
> > As I recall, that's what we were set up to do?
> 
> That is what Daniel began the filings for, yes.
> 
> c6 is a trade association, while c3 is a charity or something
> to that effect. The trade associate does not have any tax
> benefit for donations and thus doesn't lend to much interest
> in massive donations. The ability to write off a product at
> it's marketed price for tax purposes is nice.
> 
> I believe the reasons Daniel stated for getting C6 as opposed
> to C3 was that it is more legitimate. There are a lot of filing
> for C3 status that are not legitimate, but do get approved
> even without being a for-charity association.
> 
> Seeking more legal opinion on our chances of this is WELL
> worth the cost, in my opinion. We are _far_ more legitimate
> than many of the types of groups that are appoved of regularly.
> Strictly speaking, Gentoo isn't a charity, but if we are
> approved and don't pose a for the status to be removed
> from us, I don't see a problem with it.
> 
> --NJ
> 
> 
> 

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http://www.gentoo.org

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Re: [gentoo-trustees] Bylaws & 501(c)(3) filing

[Corey Shields]

bah..  replied to this once but forgot to change the profile on my mailer so 
it bounced..  let me try again

On Tuesday 29 June 2004 05:43 pm, Nicholas Jones wrote:
> c6 is a trade association, while c3 is a charity or something
> to that effect. The trade associate does not have any tax
> benefit for donations and thus doesn't lend to much interest
> in massive donations. The ability to write off a product at
> it's marketed price for tax purposes is nice.

I read something last night[1] about having 2 organizations in tandem, the 
parent a c6 and the subsidiary a c3 (which could accept and funnel 
donations).  This may be an avenue down the road if we see it necessary.  
With that possibility in mind, I'd be much happier about a c6.

> I believe the reasons Daniel stated for getting C6 as opposed
> to C3 was that it is more legitimate. There are a lot of filing
> for C3 status that are not legitimate, but do get approved
> even without being a for-charity association.

I don't look at organizations differently based on their IRS status.  If 
anything, c3's use it to their advantage when asking for donations.

> Seeking more legal opinion on our chances of this is WELL
> worth the cost, in my opinion. We are _far_ more legitimate
> than many of the types of groups that are appoved of regularly.
> Strictly speaking, Gentoo isn't a charity, but if we are
> approved and don't pose a for the status to be removed
> from us, I don't see a problem with it.

I've already been doing this, but for some reason most lawyers don't like to 
give their advice for free.    We need as many "second opinions" as we can 
get though.

Cheers!

-C

-- 
Corey Shields - Gentoo Linux Infrastructure Team
http://www.gentoo.org/~cshields

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gentoo-trustees@gentoo.org mailing list

Re: [gentoo-trustees] Bylaws & 501(c)(3) filing

[Corey Shields]

Forgot the link..  sorry:

http://64.233.167.104/search?hl=en&ie=ISO-8859-1&q=cache%3Ahttp%3A%2F%2Fwww.nonprofitlawcenter.com%2FResources.jsp%3FdocId%3D1035&btnG=Google+Search

(original seems to be down, there's the google cache)

-C

On Wednesday 30 June 2004 08:32 am, Corey Shields wrote:
> bah..  replied to this once but forgot to change the profile on my mailer
> so it bounced..  let me try again
>
> On Tuesday 29 June 2004 05:43 pm, Nicholas Jones wrote:
> > c6 is a trade association, while c3 is a charity or something
> > to that effect. The trade associate does not have any tax
> > benefit for donations and thus doesn't lend to much interest
> > in massive donations. The ability to write off a product at
> > it's marketed price for tax purposes is nice.
>
> I read something last night[1] about having 2 organizations in tandem, the
> parent a c6 and the subsidiary a c3 (which could accept and funnel
> donations).  This may be an avenue down the road if we see it necessary.
> With that possibility in mind, I'd be much happier about a c6.
>
> > I believe the reasons Daniel stated for getting C6 as opposed
> > to C3 was that it is more legitimate. There are a lot of filing
> > for C3 status that are not legitimate, but do get approved
> > even without being a for-charity association.
>
> I don't look at organizations differently based on their IRS status.  If
> anything, c3's use it to their advantage when asking for donations.
>
> > Seeking more legal opinion on our chances of this is WELL
> > worth the cost, in my opinion. We are _far_ more legitimate
> > than many of the types of groups that are appoved of regularly.
> > Strictly speaking, Gentoo isn't a charity, but if we are
> > approved and don't pose a for the status to be removed
> > from us, I don't see a problem with it.
>
> I've already been doing this, but for some reason most lawyers don't like
> to give their advice for free.    We need as many "second opinions" as we
> can get though.
>
> Cheers!
>
> -C

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Corey Shields - Gentoo Linux Infrastructure Team
http://www.gentoo.org/~cshields

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