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Grex > Coop11 > #10: Grex Granted Tax-Exempt Status |  |
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| 25 new of 127 responses total. |
rcurl
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response 62 of 127:
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Jul 24 01:38 UTC 1998 |
Grex would have to decide whether the return on investing that $600, at
most $30/year, is an acceptable discount from the regular dues of $60/year.
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arthurp
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response 63 of 127:
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Jul 24 03:28 UTC 1998 |
I'd have to say that Grex is actually putting money into Aaron's pocket.
We are providing all these services that he would otherwise be taxed
for. The Govt certainly can't provide them without taxes. Maybe since
we are giving (a small) amount of money to Aaron every year he should
instead allow us to dictate to him what are acceptable lifestyles.
Now if the Govt. were writing us a check for $12,000 it would be harder
to make this argument, but since we have converted from paying no taxes
on our pitiful income to paying no taxes, and converted from filtering
money through an inefficient Govt. to sending it directly to us where we
are frankly astoundingly efficient with it I don't see how we could make
any other argument than above.
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bru
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response 64 of 127:
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Jul 24 14:36 UTC 1998 |
By teh way, what report do we have from the city on your taxes?
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janc
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response 65 of 127:
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Jul 24 15:45 UTC 1998 |
Re resp:61: (1) I've seen no reason to believe that this status isn't
retroactive. (2) Non-retroactive status would be granted as of the date
the IRS received our application. I do have record of that date
someplace, but the fact that they didn't mention it in their
determination letter is another reason to believe it is retroactive.
Thus, in either case, the person who made the $600 donation is in the
right time period to make it tax-deductable. The question remaining is
whether Grex memberships are fully tax deductable. My opinion that they
are, but we still need to research this further.
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aaron
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response 66 of 127:
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Jul 25 05:45 UTC 1998 |
re #44: Trying to understand my perspective, Rob? Did that not occur to
you, or do you consider closing one's mind to be the best
approach to disagreement?
re #46: You need to read what I said, Steve. I have no problem with
Grex's exemption -- I think it is great that it was awarded. I
take issue only with the waste of such a valuable tool --
something which may or may not happen, but which some people
show an obvious inclination, if not outright preference, to do.
Right now, we are dealing with a hypothetical future. You should
probably be more concerned by anticipatory defenses of future
inaction than with comments that future inaction would be
unfortunate.
re #48: I very much doubt that you are correct, Rane. However, if you
can provide the correspondence that backs up your assertion, I
will happily reconsider.
re #49: Jan, you are confusing two separate issues -- the date upon
which you are "retroactively" made exempt is not necessarily
the same as the effective date of your exemption for the purpose
of deducting donations. If you cannot find clear language in
the correspondence you have, inquire with the IRS. They will be
happy to clarify.
re #51: Again, it would be extraordinarily helpful if people would read
what I said. I did not say that Grex had to do anything -- I said
that it would be a shame if Grex did nothing. It would be.
Why are you asking me to point to the directions in which Grex
should grow? Last I checked, I couldn't even read your staff
conference, a source of information that would be quite helpful
to evaluating potential areas of growth.
I don't think confusion by Arbornet's directors, despite repeated
efforts to help them understand Arbornet's exemption, has any
relevance to Grex. I do think the Grex administration will read
the materials necessary to understanding the exemption, and will
understand those materials.
re #54: What is your problem, Bruce?
re #63: Oh, I get it -- Grex is going to pay for my UM Account, and my
Tabnet account, so I don't have to support the former with my
taxes, or support both with fees?
re #65: It should be as simple as a phone call -- and the number should
appear right on the corresponsence you have exchanged. My concern
here involves only whether a misunderstanding might lead people
to do something that they technically cannot do. I guess I do have
an interest in your being correct, not that I am likely to try
to amend, but as they say, better safe than sorry.
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robh
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response 67 of 127:
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Jul 25 05:57 UTC 1998 |
I *do* understand your perspective, aaron, I just don't happen to
agree with it. Or didn't *you* bother to consider that possibility?
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aruba
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response 68 of 127:
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Jul 25 10:27 UTC 1998 |
Aaron, there is nothing in the staff conference that would help you to make
recommendations on what Grex should do in the future.
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mdw
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response 69 of 127:
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Jul 25 20:57 UTC 1998 |
There are several ways to read the tax code:
(1) what the framers of the tax code had in mind when they wrote the
law
(2) how the IRS (or other tax collection agency) interprets it
(3) how the court interprets it
(4) how an accountant might interpret it for a client
(5) what "joe smith" in the streets thinks it *ought* to mean In most
of these possible interpretations, it is senseless to try to apply any
sort of overall logic to it. That is because for each of these views,
there is not one coherent voice. Many people framed the tax laws, and
they had many different and often conflicting views. 501c3 status is
not an exception to this. To say 501c3 status "means" we're providing
service the gov't would otherwise have to provide, or that 501c3 status
is "for" charities, is complete nonsense -- that's trying to say 501c3
"means" and only one thing, and it's really just a special case of (5)
[man in the street]. Unfortunately case (5) means very little where it
counts--case (2) [irs] and case (3) [courts] are what matters to grex,
and the viewpoint we here on grex should really be following is case (4)
[accountant]. That is to say, one of grex's jobs is to figure out how
to efficiently provide as much service as possible, and 501c3 is merely
a tool the gov't provides us that should make us just a little more
efficient. That's all 501c3 is, a tool, - it doesn't *mean* anything,
any more than your social card *means* anything, or your *1993 tax
income return *means* anything. It's just random data in an extremely
complex game where people shuffle little bits of paper on desks, and it
means we can shuffle paper just a *bit* differently, and maybe, get a
slightly better deal on computer hardware.
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scott
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response 70 of 127:
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Jul 25 22:20 UTC 1998 |
I'd think it was a shame if Grex did try to do "something with 501c3" and in
the process pissed off a lot of supporters/staff because it didn't work out.
The first sentence of the letter telling us we got the 501c3 says basically
says that we have tax-exempt status for things *as they are*, and that we if
change that we have to tell the IRS about it so they can decide if we still
qualify.
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aaron
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response 71 of 127:
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Jul 25 22:34 UTC 1998 |
re #67: Maybe instead of being obstreperous, you will articulate your
position?
re #68: I guess I would have to take your word for that.
re #69: Now that we recognize that 501(C)(3) is a tool, perhaps we can
decide if it is best to get the most positive use of the tool, to
use it on rare occasions while leaving it in the garage most of
the time, or to leave it out on the lawn to rust.
re #70: Does the concept of "natural growth" seem alien to you? Nothing
has to be forced. Surely there are members of the Grex board who
have ideas of good things Grex could do, which will have a much
greater chance of success with its exempt status.
Am I wrong about that? Has there been a complete dearth of such
ideas among board members?
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remmers
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response 72 of 127:
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Jul 25 22:54 UTC 1998 |
Grex has a long history of growing its services as resources permit.
I see no reason why that will change. The 501(c)3 status will increase
resources due to tax exemptions and increased attractiveness to donors.
I'm sure that the board, staff, and users will think of nice things to
do with those resources, just as they always have. So no, you're not
wrong. If that's all that's at issue, I'm a bit puzzled why this
discussion is so heated, or even why it's taking place.
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aaron
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response 73 of 127:
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Jul 25 22:56 UTC 1998 |
It's not heated on my end. If it's heated on somebody else's end, they
should consider that their hostility, not my comments, is at the root of
that heat.
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scott
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response 74 of 127:
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Jul 26 11:52 UTC 1998 |
Grex is naturally growing all the time. Check out the length of the password
file some time, and compare the average number of online users vs. a year ago,
or two years ago.
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aaron
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response 75 of 127:
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Jul 26 15:20 UTC 1998 |
I don't know that the password file is the best place to look for evidence
of growth, nor that even if it were the place to look for growth in size,
that it would be the best place to look for the type of growth of which I
am speaking. Is the growth due to international users who like free email
and party, for example?
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mta
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response 76 of 127:
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Jul 26 15:30 UTC 1998 |
This would be a much more productive conversation if *someone* would speak
in specifics about what they think Grex ought to do with its 501C3 status,
so I'll start:
Now, with with extra resources 501C3 will provide through taxavings and any
donations it inspires, I think Grex ought to focus on making as much access
to computer and information resources accessible to as many people as we can
support worldwide.
That would include finding ways to bring more locals on board over the dialins
and make more telnet ports available for the rest as quickly as that's
feasible. The people we bring in will provide the information resources to
one another.
We might also add asection to the Handbook about how to use lynx. (Working
on that one myself.)
Next...
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aaron
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response 77 of 127:
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Jul 26 16:40 UTC 1998 |
Here's the thing, though, Misti -- Abornet has proved quite decisively that
just having 501(C)(3) status will *not* inspire people to donate. Recall\
that most people do not itemize, and most do not give enough to take any real
advantage of the charitable contribution deduction.
Don't count your chickens before they hatch -- and try to think of ways to
incubate the eggs.
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rcurl
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response 78 of 127:
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Jul 26 17:33 UTC 1998 |
It is the organizations purposes and activities that inspire people to
donate - 501(c)3 is just a little icing on the cake.
I don't know what Grex might seek a grant for, but an organization has
essentially zero chance of obtaining a grant unless they are 501(c)3
tax exempt. Something to consider if there is some new venture that
Grex would like to expand into (such as, educational programs).
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tpryan
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response 79 of 127:
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Jul 26 17:51 UTC 1998 |
A measurement of growth for me would be the number of "voices"
in this agora.cf vs. a year ago or two years ago. A voice would be
a userid entering or responding to item(s). Exclude very low volume
users--those that enter item in error, or respond only to the welcome
item to not be heard again.
Has anyone made this measurement? Perhaps this methodology and
discusion seserves a new item?
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mikeg
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response 80 of 127:
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Jul 26 18:32 UTC 1998 |
Re #76: Along the lines of expansion, as mdw noted earler, the tax exemt
status may give large companies incentive to donate new hardware (read-
FASTER hardware), which would be a definate advantage to the 501(c)(3)
status.
Private donations would also be encouraged, at least for people who
itemize their taxes, as they could claim Grex as a deduction now.
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mta
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response 81 of 127:
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Jul 26 19:12 UTC 1998 |
I don't think new donations are something to count on, which is why I
emphasized the tax savings. It probably will result in the occasional
corporate donation of hardware, etc. and I think that alone is sufficient.
Of course, we do have to work on finding ways of getting new memebers and
maintaining more existing members -- but I consider that to be a different
issue, since - as Aaron has pointed out - most people won't be influenced all
that much.
As Rane says, our best best in getting new members is to look for people who
are willing to donate because of what Grex is and what it does. Those people
are out there, I'm sure. We have to find them and make it as attractive as
possible for them to join in supporting the system.
After listening to Dan R. at the last board meeting, I think it may be time
to take a look at credit card options again. It may still be too expensive,
but it could add enough convemience for our members that I think it's worth
checking every so often anyway.
I'm wary about looking for grants. I'd be concerend about rwo things:
1) any restrictions the grant-givers might want to place on Grex
and
2) letting folks get the perception that Grex doesn't need grass-roots support
because it's government/grant funded. Most of what makes Grex special is its
grassroots nature. That doesn't rule out specific grant moneys for specific
expansions -- but I think it would fundamentally change the nature of our
system to depend on grants for support of our daily needs.
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rcurl
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response 82 of 127:
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Jul 26 20:51 UTC 1998 |
Unfounded worries. One gets a grant to *do* something over a period of
time, and when it is over, it is done.
I don't think that there would be a fall-off of grass roots support if
Grex got a grant that started something new that they could also take
advantage of. In fact, it could attract even more members to donate to
continue the activity.
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mdw
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response 83 of 127:
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Jul 26 21:03 UTC 1998 |
There is no danger of us *not* using the 501c3 status. We'll soon be
making use of one minor, but pleasant surprise -- it seems 501c3 status
means we don't need to pay state and local taxes on our phone lines
anymore.
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mikeg
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response 84 of 127:
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Jul 26 22:05 UTC 1998 |
Getting rid of phone taxes is a very good thing :)
It might also be worthwhile to have Grex moved to it's own electric
meter (Check with your landlord and the electric company about this, it
would let you write off the taxes on electricity, but might wind up
costing too much to be worth anything).
Also, looking for other possible benefits, does Grex pay any taxes on
the lease? It might be possible to eliminate those also. Certainly
worth an attempt.
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aruba
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response 85 of 127:
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Jul 26 22:10 UTC 1998 |
Re #82,83: I share Misti's 2 worries about grants, but having no
experience with them, I will take Rane's word for it that it is possible
to avoid them. I think we should keep the pifalls in mind, though, if we
decide to apply for a grant. (In other words, I believe Rane when he says
that it's possible to get a grant and not be subject to strings or promote
disinterest among users, but I'm not convinced that things can't go awry.
So I think we should be careful.)
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aruba
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response 86 of 127:
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Jul 26 22:12 UTC 1998 |
(#84 slipped in) No, we don't pay taxes on our lease. I will call Detroit
Edison some time to see what it would take to get us our own meter, but I
suspect it's going to turn out to be more than we can recoup in a reasonable
amount of time.
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