I have filed our Articles of Incorporation with the state as The Hawaii
Open Source Education Foundation. I have applied for an Employer
Identification Number (EIN) with the IRS. This amounts to a social
security number for a business. It is this number which will be
required to apply for and attain our charitable 501(c)(3) status with
the IRS.
We will be applying for and should be accepted as a Public Charity under
the Classification of Section 509(a)(1) Organizations. (pp. 25 Irs. Pub.
557) This is because we meet criteria 6 (pp. 28 Irs. Pub. 557), a
publicly supported organization. This is because we meet the One-third
test to qualify as Publicly Supported. It reads as follows:
An organization will qualify as publicly supported if it /normally/
receives at least one-third of its total support from governmental
units, from contributions made directly or indirectly by the general
public, or from a combination of these sources." (pp. 29 Irs. Pub. 557)
What this makes us, pending some mistake I made in filing our Articles
online (if you don't know, Hawaii has a SENSATIONAL offering of online
forms) is a non-profit in Hawaii. For the long term, the recognition as
a tax-exepmpt organization under Section 501(c)(3) (Form 1023) is
important. Let me point out one thing, though. According to
Publication 557, Tax-Exempt Status for Your Organization, page 17, we
are not technically required to be a 501(c)(3) to receive charitable
donations. This is only for the short term, but, if you observe section
"Organizations Not Required To File Form 1023" where it states as follows:
"Any organization (other than a private foundation) normally having
annual gross receipts of not more than $5000"
as a condition for exclusion from attaining this status immediately.
We must pass the gross receipts test, though, found on the same page.
We must have less than 7500 in gross receipts for year one, less than
12,000 for the first two years. Note, "an organization with gross
receipts more than the amounts in the gross receipts test, unless
otherwise exempt from filing a form 1023, must file a form 1023 within
90 days after the end of the period in which the amounts are exceeded."
This technically frees us to accept as much as anyone cares to donate.
Our Form 1023 will be filed as soon as we receive our EIN. This will
certainly be within the next 90 days.
What this means is that if you have some equipment or a desire to make a
contribution, then you can do it. You can make it to us.
All application documents and our annual reports are required to be
available for public inspection. I propose posting everything on the
web except for my home address. The P.O. Box for the Corporation will
obviously appear. We are not legally required to make this available
until we have received tax-exempt status. I will, however, post this
minus the pending EIN by the Sunday deadline for public inspection.
Our State Articles require that someone be a legal State resident. That
is me for as long as the Army allows us to contribute to these islands.
When the day comes to move, the transfer is quite easy thanks to our
State's egov forms. Our Articles of Incorporation are basically going
to be a template of what you can see on page 18 of this oft-referenced
publication. They are very basic. They are designed to make it clear
that the corporation may serve no political interest, that upon
dissolution assets must be given to the government, and that no private
individual can profit from it. Upon the suggestions of the Trilug, our
Articles are intended to be legally compliant and NOT organizational
specific.
We will be organized around the foundation set forth in the by-laws.
They contain our mission:
Mission Statement of HOSEF
To promote and sustain Open Source Software usage in our eduacational
and non-profit institutions through advocacy, support, and the
accumulation, restoration, and installation of donated hardware from the
general public.
As well as our organizational structure, which has been inspired by the
Trilug. Annually we nominate and vote on officers to comprise the
Steering Committee. Nominations should occur by the 10th of December
and elections by the end of the month. Since it is likely that no one
will feel comfortable showing favoritism by voting publicly, I suppose
that it could be done by mail. Or, people can volunteer each year.
This is for us to decide. It can be stated in the by-laws that
self-nomination is okay, and should no other nominee step forth or be
proposed that no election is needed.
I propose that we have a Chief Officer, an Information Officer, and a
Technical Officer. Please suggest otherwise. The Trilug site is not
available now, but, I liked their arrangement as well. I propose that
Warren Togami be the first CO for the rest of this year and next, that
Jimen Ching be the IO, and that Ray Strode be the TO. All this would be
officially conducted within the context of a meeting with minutes. Feel
free to decline or suggest others. Keep in mind that in the decades to
come, there is time for everyone to lead and contribute.
A public charity like this is the perfect organizational model for an
Open Source advocacy group. We may not serve the interests of any few
individuals, by law, and keep our status. We must serve the interest of
the public. This should not be such a challenge for this noble
endeavour. The wind is picking up, the sails are set. Pending a
steering committee for direction, we are a ship ready to sail. Come aboard.
scott
