[luau] Ladies and Gentlemen

[Brian Chee]

Actually you'll never find the rollover thingie in the 501 stuff.....we got
that from the coopers and lybrand tax accountants....it's the same rollover
that communities have to do (association of apartment owners, etc) so that
you can acrue money over several years for large scale improvements (road
paving etc) that can't be funded in a single year.

The HINUG group acrued bucks so that we could fund an annual
conference....it took several years to raise enough money to do the first
one.

So you folks could do the same for server purchases, buying a bunch of
refurb laptops for portable classrooms, etc....whatever you can imagine. All
in all a good thing so that you don't have to pay taxes on monies that you
don't manage to spend in a single fiscal year.

/brian chee

University of Hawaii ICS Dept
Advanced Network Computing Lab
1680 East West Road, POST rm 311
Honolulu, HI  96822
808-956-5797 voice, 808-956-5175 fax

----- Original Message -----
From: "R. Scott Belford" <sctinc at flex.com>
To: <luau at videl.ics.hawaii.edu>
Sent: Friday, December 27, 2002 6:49 PM
Subject: Re: [luau] Ladies and Gentlemen


> On Friday 27 December 2002 05:46 pm, Brian Chee wrote:
> > far out...I did the non-profit educationally oriented corporation MANY
> > years ago for the Hawaii Netware Users Group (HINUG) but alas, interest
in
> > Netware waned and the group died. However the tax exempt status was
> > great....however there were a couple gotchas that I'd like to pass on.
>
> I love Novell.  Well done with that initiative.  Well done.
>
> >
> > 1.    You MUST run at least 1 general meeting a year and it must be run
by
> > something like Robert's Rules of Order.
> > 2.    At that general meeting, two things MUST happen:
> >     a.    An advisory board of directors must be voted upon and the
> > installed after voting
> >     b.    A rollover resolution for funds obtained but not spent in the
> > past fiscal year, be rolled over to the next fiscal year to help fund
> > overall long term goals of the organization.
> > 3.    The minutes of this meeting must be published or be available for
> > public inspection.
> >
> > If you can do all three, then it works and donations are legal....if you
> > don't....then the IRS will have a conversation with you.
>
> Many thanks for the tips.  I will have to do more reading.  The
application
> for 501(c)(3) tax-exempt status does not depend upon by-laws defining any
> organizational structure.  I did not see anything about funds rollover.
We
> are applying for this as a volunteer based charitable organization, so
> perhaps some of the requirements are different.  Now that you have said
this,
> I am definitely going to scour the "man" pages to be sure that I am not
> overlooking anything.
>
> >
> > Oh yeah...I made the suggestion about donating to UH since this issue
came
> > up now....that way the donation can be made and whoever can get a
donation
> > letter this tax year.  However, having said that, I am FULLY in support
of
> > the group getting non-profit status and yes ALL the donations should go
to
> > the group. However, I would still suggest that donations that will
> > eventually go to a school, be donated directly to said school.  If
you're a
> > class-c corporation and the gear is two years old or less...there is a
> > special tax credit if it goes to a K-12 educational institution.
>
> You are a good man to offer the immense resources of UH.  Something that I
> discovered and posted to the list a little bit ago was the fact that an
> organization such as ours, which is already a legal, charitable
non-profit,
> can legally accept donations.  Our application for tax-free status only
has
> to be made if we collect more than  $5000 in a year of operation.  While I
> have gone ahead and applied for the 501(c)(3) tax-exemption status, we can
> legally donate to ourselves this year.  I can write you a letter.  I
> certainly intend to deduct the few expenses that I have incurred in the
> incorporation steps.
>
> HOSEF
> PO Box 392
> Kailua, HI 96734
> 808.230.8845
>
> scott
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