[Ubuntu-US] NFP Talk
veritastic at gmail.com
Wed Sep 12 05:39:20 BST 2007
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.
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
> 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.
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