FYI, there's a new fast track process for certain nonprofits. A friend had his makerspace c3 approved in 6 weeks; I've heard of others taking no more than 3 months.
> On September 3, 2015 at 9:22 AM David Evans <[email protected]> wrote: > > Thanks James. Yes the c6 designation maps much more closely to the > coworking model than c3, but most people don't know the differences between > the 25+ different non-profit models. > > Spaces that don't offer suitable education components often have their c3 > designation revoked. How often do you hear about that happening? We're heavy > on education, but still, in the end, c6 takes weeks to get at most, c3 takes a > year. So there's the timing aspect as well. > > I'd like to see is a chart showing differently-sized coworking spaces and > the corporate status of each and if they had to change designation after the > IRS review. > > We're a town of 12,000 people, coworking is a break-even enterprise. If we > were in Boston, we'd be something different. > > Thanks again for your input, I don't see enough critical discussion over > such an important foundation to a coworking space. > > Dave > > On Wednesday, September 2, 2015 at 12:25:06 PM UTC-4, Bucketworks wrote: > > > > Sorry my introduction wasn't terribly complete! > > > > I'm with the School Factory --<http://schoolfactory.org> > > > > Since 2010, we've been providing spaces with fiscal sponsorship and > > program hosting for 501(c)3 status, so we take care of all donations, > > grants, and compliance issues (as well as filing federal returns!) We're > > doing this for 48 spaces now, in addition to mentorship and guidance on how > > to run a good space, based on our own experience from starting what amounts > > to the first co-work / maker / artist space in the U.S. back in 2002. > > > > Through that process, we've been in and out of every aspect of IRS > > law on the issue and have created a robust system for dealing with questions > > and issues, as well as handling the money quickly and accurately to avoid > > even being on the radar screen of the IRS. > > > > Many spaces fail to comply by being too private-- in other words, > > the IRS looks at them and says, "You're really just about a private club, > > offering benefit to members only." If a space offers any kind of open > > classes, programming, or outreach then it's much easier to comply. > > > > Also, many spaces confound the governance model they use with the > > type of organization they are--non-profit doesn't mean 'don't make money' > > and doesn't have to mean anything regarding a collective management > > structure. In the last several years working with more than 120 spaces, > > we've seen every kind of governance model coupled with L3C, B corp, and > > non-stock corps. > > > > The C6 designation can be appropriate, depending on the situation. > > The difference seems to be in terms of the ability to advocate politically, > > among other things. > > > > James Carlson > > 414-215-0215 > > > > On Wed, Sep 2, 2015 at 3:55 AM, Jeannine van der Linden > > <[email protected]> wrote: > > > > > > > There is a fable going around that it is easy > > > > > to get (c)(3) status and that it is easy to maintain. > > > > > This was true for a long time, and with the streamlined > > > > > procedure it is in some sense stiill true. The trouble > > > > > with all this is, when the IRS gets a new set of madates > > > > > regarding enforcement then there will be audits. And in > > > > > case of an audit all those (c)(3)s are likely to have a > > > > > problem. The problem is, in what sense are you a charity? > > > > > > This section of the IRS code was intended for businesses > > > founded for charitable, religious, educational, scientific, or literary > > > purposes, or for purposes of testing for public safety, fostering amateur > > > sports competition, or preventing cruelty to children or animals. > > > > > > Very few coworking related businesses are doing those things > > > as their purpose. Fostering community is not charitable in nature unless > > > your community is a charitable community. > > > > > > So in case of audit the chace is large of losing that status > > > and all the headaches that follow. > > > > > > I think the chance of audit is small. But why start by trying > > > to shoehorn your space intoa category that it does not easily fit? A > > > (c)(6) is more appropriate and more suitable for a lot of spaces. The > > > co-op is also in the rise and I expect to see more state level legislation > > > in future in this area. Als LLC's are often a good choice. > > > > > > It is the case that changing business form is not difficult, > > > But it is distracting and expensive. > > > > > > I am interested in the L3C, because I think the notion of "low > > > profit" companies is an interesting development in terms of how we think > > > about doing business. But I am I confess a little wary about it in > > > general, possibly it is my nature to be careful abotu Legislatures bearing > > > gifts. > > > > > > B Corps are also interesting I think for coworking spaces. > > > Also new, but a little clearer in terms of the qualifications and > > > governance. > > > > > > > > > On Wednesday, September 2, 2015 at 12:03:19 AM UTC+2, > > > Bucketworks wrote: > > > > > > > > > > Why a C6? Not a C3? > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected] > <mailto:[email protected]> . > For more options, visit https://groups.google.com/d/optout. > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
