Yes we do meet the requirements to be identified as a tax exempt
organization (http://www.irs.gov/prod/bus_info/eo/soc-clubs.html). This way
we can legally collect money via donations or the selling of goods and
services ourselves. We can even legally accept equipment donations or buy
our own. The problem is it takes time and effort to do it. Also to do it
right it MUST be done by a group of people (NOT A SINGLE PERSON!). For
instance one person keeps the records, while another performs monthly audits
and reviews. Basically, misappropriations are a very ugly thing and must be
avoided using checks and balances in the systems. The records must kept open
and auditable at all times.
On another note say Lotus donates $1000.00 in cash/equipment to help our
cause. They will clearly enter it as a community donation in their records.
WHEN audited, if the IRS pursues it and find that "Jeff Smith" accepted it
and "Jeff Smith" is not a recognized tax exempt organization then "Jeff
Smith" will pay all fines, penalties, back taxes and associated jail time no
matter what his excuse is(unless he reports it as income on his tax
return-but that would defeat the purpose of a donation to the group).
I have been involved with this stuff many times before as the Recreational
Services Officer for several of my past duty stations(I'm in the Navy in
case you did not notice). Other than not paying the government taxes on our
money there are other advantages to being a legitimate and recognized tax
exempt organization, but I'm starting to repeat myself from earlier emails.
Rick
:-)
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]] On Behalf Of
Jeffry Smith
Sent: Thursday, February 24, 2000 9:35 PM
To: Jerry Kubeck
Cc: NUN / ORG List
Subject: [GNHLUG Org Status] Volunteer Association
Jerry -
I know the question has come up about going Non-Profit status to be
able to have bank accounts, sell things to raise money, etc. The
issue is the paperwork and cost of registering that. At a town
function the other day, someone mentioned to me that the town had a
lot of organizations (such as youth soccer) registered with the state
as "volunteer associations." They are similar to non-profits, but
only require paperwork once every 4 years, cost of $25 then. Legally
have bank accounts, sell items, etc. I forgot to ask for more info,
but I will try to get more.
jeff smith
