[luau] HOSEF Status

[R. Scott Belford]

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