Newsgroups: bit.listserv.seds-l
Date:         Thu, 5 Nov 1992 23:27:27 PST
From:         "(John A. Wright)" <wrightj@CHESHIRE.OXY.EDU>
Subject:      501(c)3

Hi all,

Since the L has been dead for the last couple days, I thought I'd go
ahead and post about 501(c)3 :)

>The first
and most important issue is whether we should apply for a group exemption
letter which will cover individual chapters and regions of SEDS-USA.

Hmmm, I really don't know if SEDS-USA should go for the group exemption
because each chapter is currently at a school and can use the school's
non-profit status.  SEDS has had community chapters, but this is far from
the norm and there probably won't be many (if any) of the non-school affiliated
chapters in the future.  Ignoring cost ($650 which can be raised if we want
to raise it) should we go for the exemption?

Perhaps SEDS should go for the exemption for exempt regions (the newest of
the SEDS entities)  This might be worth the time and money.  But if the
region is based at a school (CalSEDS at Caltech, etc) perhaps the chapter
can take responsibility for the region...

> Next, should SEDS-USA apply as a new organization or as one who had
previously held tax-exempt status but later lost it?

Filing as a new organization is our best bet.  All the old 501(c)3 stuff
, to the best of my knowledge, has been lost in the HQ move/etc...

>        Third, we need to discuss the address that will be filed as the
current address for the group.

Perhaps we should file in CA.  Our lawyer is a CA lawyer and we have a
responsive address/people/etc...comments...? especially from the MIT folks?

>        Fourth, we need to determine the effective date when the exemption
will take place.  According to what I've read, it is possible to apply this
exemption retroactively...however, I believe that it will be simplest just
to have the exemption take effect upon the filing of the application.

It doesn't sound like there's any good reason to file retroactively.

>        Finally, we need to determine what fiscal year the group is going to
follow.  Will it coincide with the calendar year?  With the election of new
National officers?  With the start of the school year?  The date for filing
of the tax forms will depend on this choice.

A FY close to the school year's calandar is probably most appropriate.  The
only thing that makes it complicated is which school year? :)  Sept-Sept,
Aug-Aug?  Maybe Nov-Nov when chapter dues are due...?

>        Next, we'll need to supply the IRS with a copy of our Constitution/
Articles of Incorporation, as well as any by-laws we may have (I am not aware
of any, but we might decide to draw them up).

This is will take a little work.  We need a few more clauses in the
contistution as well as 2-3 by-laws to file.  Any policies we want
to write down don't have to be filed, but the const and by-laws do.
Mark has expressed interest in suggesting some const changes and by-laws
and will meet with the 5 board members out here and post on SEDS-L for
discussion.  This can be relatively painless or totally overwhleming...
let's not draw the discussion to far out...it could take the rest of the
year, or maybe a week and a half...

John
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