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Grex > Coop10 > #77: Need a Location for Grex Board Meetings | |
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| Author |
Message |
| 25 new of 105 responses total. |
robh
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response 50 of 105:
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Feb 23 22:49 UTC 1998 |
Re 48 - Someone was writing Grex's 501c3 application in 1992,
when I joined. >8(
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rcurl
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response 51 of 105:
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Feb 24 05:39 UTC 1998 |
Yes, I recall who it was, too. It seems to be a disease carried by
form 1023.
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valerie
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response 52 of 105:
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Feb 24 07:07 UTC 1998 |
This response has been erased.
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dpc
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response 53 of 105:
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Feb 24 15:51 UTC 1998 |
Lest anyone misunderstand me, I do *not* want Grex to become a 501(c)(3),
even if the Board has to meet in the City Hall parking lot!
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rcurl
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response 54 of 105:
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Feb 24 17:33 UTC 1998 |
Waffles at ten paces in the parking lot - I think that Grex should definitely
apply for 501(c)3 exemption as soon as possible (and it is called for in
the Articles of Incorporation, though that is not why I strongly recommend
it - it is the advantages to the corporation that are the reasons).
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mta
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response 55 of 105:
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Feb 24 19:33 UTC 1998 |
I agree, Rane. And one of these days we'll get it done...but as you say,
form 1023 seems to carry a bad caseof intertia with it. (Maybe even worse than
form 1040 -- that at least has deadlines.)
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remmers
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response 56 of 105:
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Feb 24 19:43 UTC 1998 |
Re #53: Why wouldn't you want Grex to become 501(c)3, Dave?
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davel
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response 57 of 105:
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Feb 25 02:04 UTC 1998 |
Possibly a bad case of M-net?
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dpc
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response 58 of 105:
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Feb 25 14:30 UTC 1998 |
Two reasons why I think 501(c)(3) is a bad idea for Grex.
First, I don't believe that having that status would motivate people
to donate stuff in order to get the tax deduction. I base this
belief on M-Net's experience. We have had a bunch of donations, but
only rarely has anyone asked for a receipt to furnish the IRS.
Second, Grex (like M-Net) would not be a "conventional" 501(c)(3).
We don't provide food to the homeless. Instead, we provide computer
services to the "computer have-nots". Even if the IRS granted us
this status, we would leave ourselves open both to political attacks
by twits, and to endless tail-chasing exercises as we tried to interpret
the extremely vague and bizarre IRS rules.
So I don't think the game is worth the candle.
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rcurl
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response 59 of 105:
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Feb 25 18:18 UTC 1998 |
Doesn't m-net always send an acknowledgement to donors? If not, no
wonder there isn't much interest in donating! This should be always
be done.
There are many charitable 501(c)3 organizations that do not service the
poor. The criterion is essentially that the organization provide a service
that government might otherwise could or has to provide for the public
good. I have never heard of charitable organizations that are not
human-services providers being attacked "by twits". I am or have been an
officer in at least six 501(c)3 exempt charitable non-profits, none of
which served the poor or homeless etc, and in *none* of them did we ever
encounter "endless tail-chasing exercises". In fact, the only time the
status ever entered into our business, it was to our benefit (Adobe
Computers just donated a copy of Photoshop to one of them - 501(c)3 status
was required.)
It does happen that some agencies may not look upon a non-human-services
charitable organization as deserving of certain benefits. In another of
my organizations, we were denied property tax exemption by a township
because we weren't "a church or scout camp or something like that". We
sued, and won in the Michigan tax court.
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dpc
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response 60 of 105:
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Feb 25 19:27 UTC 1998 |
Sure, M-Net always thanks its donors. But few people ask for formal
*receipts*.
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other
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response 61 of 105:
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Feb 25 20:10 UTC 1998 |
i believe it is standard practice among 501(c)s org's to provide donors with
receipts bearing the tax id number of the org and the amount of the donation
which is deductible. i have received such from every 501(c)3 to which i have
given, excepting m-net.
i may not wish to take the additional steps to deduct a small donation, but
certainly for anything over $100 it is worth my time. i am sure others feel
similarly.
m-net got into trouble over it's 501(c)3 because of the conviction of certain
uninformed users that m-net was fraudulently accorded the status because it
was not carrying out formal programs of education and outreach in addition
to providing its basic service function. grex users tend not to quite so
virulently pursue issues about which they are totally ignorant.
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janc
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response 62 of 105:
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Feb 25 21:31 UTC 1998 |
Dave's reason (1) is not a reason *not* to get 501(c)3. He isn't claiming
they get fewer donations as a direct result of doing it.
Dave's reason (2) I don't agree with. There is nothing in the rules about
"conventional" and "non-conventional". There is a list of catagories of
service that might qualify. I think we fit into them. The draft application
I started writing describes accurately and completely what Grex has been doing
for the last six years, which is pretty much what it intends to continue
doing. If the government is willing to accept that as a qualifying 501(c)3
activity, then we certainly should have that status. If not, we'll get turned
down and be no worse off than we are. I certainly agree that we should not
be mutating our efforts to try to fit them into a 501(c)3 framework, but I
don't believe that there is anything we are doing or want to do that does not
fit that framework already.
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rcurl
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response 63 of 105:
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Feb 26 08:31 UTC 1998 |
Well...you *always* get turned down the first time. It is to test your
mettle (or metal?). They will come back with a whole bunch of additional
questions. This is how they test if an organization is serious and committed.
Yes, the thank you letter should acknowledge the ammount of any monetary
gift. It should *not* state a value for any in-kind (property) donation.
If a monetary gift is more than $250 you must state in the acknowledgement
letter that "no goods or services were provided in exchange for this gift"
or words to that effect.
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davel
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response 64 of 105:
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Feb 26 12:23 UTC 1998 |
What Jan said, with one quibble. dpc's reason (1) is an argument that 501(c)3
status is really of little or not benefit; given that formally applying will
be a fairly big PITA, that would count as a reason not to do it.
I'd question whether Dave is correct on that one as well, though. I don't
think the floodgates would be opened, or anything; but Grex operates on a
shoestring. It's quite easily imaginable that some *one* piece of hardware
might come our way (rather than someone else's) partly because someone wanted
a tax writeoff, which would make all the IRS stuff worth while. Even failing
that, even that "only rarely" that he allows might make a significant
difference to us.
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jep
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response 65 of 105:
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Feb 26 16:49 UTC 1998 |
Making use of a 501(c)(3) designation takes some extra effort. Even
having it requires some extra effort.
Arbornet has never had anyone who was willing to apply for grants,
contact corporations, and push to make good use of it's 501(c)(3) for
the benefit of M-Net. Dan Napolitano (keats) applied for and got one
$7500 grant that allowed Arbornet to take on a new project, but the
project (the K-12 teacher network) never got the volunteer support it
needed, and is now long since dead.
Arbornet has been mired for years because Aaron Larson (aaron) has
pushed to get the organization to comply with the various rules for
funding and operating a 501(c)(3) designated corporation, and there's
little interest on anyone's part to work at following those rules.
There are a lot of rules. 30% of funding has to come from donations
(not purchases of service such as memberships carrying extra perks), for
example. Arbornet's operations are not strictly what the mission
statement says they should be. I could go on and on, but you can go
back and read old policy conferences on M-Net if you want, and get a
better picture.
Dave is expressing the doubt that the benefits are worth the numerous
hurdles and requirements. I agree with him in that I wouldn't want to
see Grex go through the problems M-Net has had in recent years. I think
a 501(c)(3) is a great benefit to the right organization, but I'm not
sure I think Grex is the right organization any more than M-Net was when
it took that step.
M-Net had some pressures at the time, with failing equipment and lack of
funding, that Grex doesn't have. M-Net had to do something. Grex
doesn't. It's doing just fine now.
M-Net placed itself under another organization, with an existing
(and elderly) charter and requirements. Grex can create it's own
new 501(c)(3) charter, which may be enough to allow it to be more
successful.
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keesan
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response 66 of 105:
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Feb 26 16:59 UTC 1998 |
The Quaker residence also charges $25 for an evening, and I can check out some
churches as well as public schools. I calculate that four new members would
pay enough to cover this monthly charge, and we have probably found one (will
know next Tuesday, he promised to pay grex a year's membership if the modem
we plan to install gets him online). This is 25 cents/month/member. SHould
I bother checking out pay-for-use places or not? Most don't care about your
tax status. Does anyone have connection with the U of M or the student
dormitories - do they offer free use of facilities?
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keesan
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response 67 of 105:
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Feb 26 19:18 UTC 1998 |
Commie High closes at 9 and is booked solid. (Did not check other schools).
The Ann Arbor Community Center on N. Main is renovating for a few months but
does rent out rooms. Several churches did not answer (but St. Andrews would
probably charge $25-40). First Baptist has several rooms available on the
fourth Wed. (other days were all taken) and is open until 10:00. They can
set up chairs and tables. The fee depends on several factors but is probably
somewhere around $25, we would have to come in a fill out an application form.
(They also host 12-step programs and an Interfaith Council for Peace and
Justice meeting and are very centrally located.)
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rcurl
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response 68 of 105:
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Feb 26 20:31 UTC 1998 |
Re #64: dues to a 501(c)3 organization are donations (tax deductible)
and it is permitted for members to receive some benefits of membership
that further the objectives of the organization (recent changes in
regulations are useful). There is no burden in Grex meeting the 1/3 rule
and all the other rules, and there are some excellent manual for non-profits
to assist (which are much clearer than the IRS regulations themselves).
It's a win-win thing to do.
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valerie
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response 69 of 105:
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Feb 27 05:52 UTC 1998 |
This response has been erased.
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keesan
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response 70 of 105:
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Feb 27 18:34 UTC 1998 |
This was for 4th Wed, and I thought the whole argument about tax status arose
with reference to paying $25 to use the NEW center. I'll keep thinking.
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srw
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response 71 of 105:
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Mar 4 02:45 UTC 1998 |
Long ago I promised Grex a $100 donation, no strings attached aside from
being able to deduct it off of my taxes. The offer is still open.
Therefore, I am quite certain that it is costing Grex money not to be a
501(C)(3), although I am saving some (less than Grex is losing though).
I am fully convinced that we qualify, and that there is no good reason
to be a 501(C)(3).
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scg
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response 72 of 105:
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Mar 4 04:30 UTC 1998 |
You mean, "no good reason *not* to be a 501(c)3," right?
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jep
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response 73 of 105:
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Mar 4 18:55 UTC 1998 |
Is your pledge intended to push Grex to becoming a 501(c)(3), Steve, or
do you just strongly believe you deserve a tax break for donating to a
non-profit? I'm just trying to understand the motivation here.
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rcurl
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response 74 of 105:
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Mar 4 19:22 UTC 1998 |
When one donates money, one donates money. If one is in the 20% tax
bracket, donating $100 costs you only $80, but you have still donated a
net $80. The only effect of what you call a "tax break" is a gift to the
recipient of federal funds equal to 25% of your personal donation, because
a worthwhile public service is being supported.
I would be more likely to donate to Grex if it had a 501(c)3 exemption
because of the leverage this would provide for my donation. For Grex to
not accept leveraging donations made to it is not wise financial planning.
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