I agree it takes a group, which is the reason I suggested it. In
terms of time, I'm associated with a Boy Scout troop (MA, but I assume
NH isn't all that different). We have a treasurer who takes care of
the money, reports monthly. Audited yearly (actually only required by
the AF, military troop). Because we have a troop bank account, all
donations are made to the troop (& we give receipts). Although the
troop doesn't require double signatures on the checks, that can be
done as well. Yes, it takes time, but not all that much. It does
take commitment from the people in the positions, and I'm not certain
we're to that stage yet. The reason I brought up the volunteer
association is that one of the original concerns about non-profit was
the paperwork & costs of REGISTERING with the state. I brought up
volunteer organization as an alternative with reduced paperwork &
costs, when and if we ever decide to formalize the organization.
jeff smith
Rick Petree wrote:
>
> 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
