[Ubuntu-US] NFP Talk

[Chris Rohde]

Thanks for passing the specs Rich, its nice to hear some levelheaded
talk lately :)

With that in mind, I do plan to write up a bit of a tutorial on
responsible, easy, and accountable handling of monies within a loco
team, for those who may face the issue in the future. Not so much geared
towards a 501 status, just for responsible  handling that keeps everyone
satisfied that their money is being spread wisely, and where it belongs.

bordy

Richard A. Johnson wrote:
> OK, I have sat back here to listen to everyones ideas and visions of having a 
> not-for-profit setup for their LoCo. It seems there are 2 glaring reasons for 
> this:
> 1) Donations (ie. tax write-offs)
> 2) Liability coverage
> 
> Don't want to burst a bubble, but an NFP does not and will not provide any 
> type of liability coverage. Each member of the NFP, of which is listed in 
> the "Articles of Incorporation" and any addendums  to such, will still be 
> liable. The only thing you will get with an NFP is the ability for accepting 
> donations from companies or persons who want to write such donation off on 
> their taxes.
> 
> So what exactly does it take to receive NFP or 501(c)(3) status?
> 1) Articles of Incorporation (AoI)
> 2) Filing more paperwork with the IRS than you could ever imagine. Are you red 
> flagged by the IRS yet (you know what I am talking about Bordy)? If not, well 
> get ready to be red flagged. Every year you file taxes, don't expect your 
> rapid deposit, as you will be flagged and audited yearly. This usually occurs 
> up the point to where your annual income is greater than the limits imposed 
> by the IRS.
> 3) Everyone who is going to be a direct member listed in the AoI, be prepared 
> to turn over your very own personal finances and access to your banking 
> records to the IRS (man I hate them people).
> 4) Lawyers, more lawyers, an accountant who won't shred the papers (ya I am 
> pointing at you bordy, I know you and the Enron deal).
> 5) If your NFP violates any statute set forth by the IRS, each and every 
> member on the AoI will received the same exact punishment. So say the IRS 
> comes at you for $1,000 (which is definitely on the low side), be prepared to 
> pay your portion equally.
> 
> I think that about covers it, except for the initial fees. Plus, if your NFP 
> was to receive less than what the IRS statute calls for, you won't get a 501
> (c)(3) status at all. Another thing if I remember correctly, is that an NFP, 
> which is nothing more than a public charity that provides a wide variety of 
> services not specific to just a few people. This was the reason that my main 
> MBA project at Kellogg was shot down. My initial plan was to make "Ubuntu 
> Chicago" a NFP. My professors told me I had no chance with the project, and 
> me being hard headed and stubborn, went to the local offices to file my 
> petitions and paperwork ($700 out of my pocket), just to be told not even 4 
> days later, that my paperwork would not even be forwarded to the governing 
> parties as the NFP did not meet any of the guidelines set forth.
> 
> I just want to inform you, not shoot down your ideas, your visions, or any 
> goals that you may have. I don't want to see someone try to do this, only to 
> file the paperwork and lose their money in the process. I was lucky with 
> $700, you may not be so lucky. The only way you can get the liability you 
> seek is to create nothing less than an LLC (Limited Liability Corporation). 
> The cost of setting up an LLC (except for those of you in Connecticut) is 
> atrocious. And the only way to setup an LLC would be to separate yourselves 
> from the Ubuntu trademark.
> 
>