VERY IMPORTANT... if anyone IS telling people their contributions or dues or ANY
monies to the NWAA are tax-deductible, they need to STOP doing so. We NEVER
said they were, and never told anyone in our group to say that they were.

Again, as I mentioned before, there are lots of local civic
organizations that offer scholarships that do not enjoy "official"
charitable status. It was in that context that I replied to Jason.

When I described to the CPA that we were, in fact similar to a local
team "booster club," he suggested that we avoid the hassles, liability
and most importantly - the expense - of becoming an official charity.
He suggested the filing fees and accounting costs, etc would not be worth it.

The $25,000 threshold I mentioned has to do with a federal form (I don't have
the number, sorry) that has to be filled out if we exceed taking in more than
$25,000. The accountant, did say that triggers some other accounting
necessities as well. (This has nothing to do with the tax-exempt charitable
issue.)

Is the status of being a true "charity" worth it? How many things do you buy on
behalf of a local civic or team group that are tax deductible? Unless it is
advertising for a business, probably none. I would suggest that
tax-deductiblity will have very little effect on most of our fundraising
efforts. Does tax-deductibility make a difference to the person who is buying a
$25 ticket to a fund-raising dinner? Does it make a difference as to whether or
not someone pays their dues? I can't imagine anyone who was interested in our
organization turning down the chance to join because their $20 was not tax
deductible.

A local business already CAN deduct their $50, 75, or $100 for
advertising as a business expense in a wrestling program booklet or
on the website. And to do this we don't need to take on the expense of official
charitable status. A business person can deduct our advertising right now.
(That's why so many similar groups do the "advertising thing" on calendars,
program booklets, etc...) And even in this regard, we should not say ANYTHING
about "tax-deductibility."

The Friends of Football, the Newington Baseball Association, the Friends of
Soccer... these are all groups that exist, thrive, give
scholarships... all without forming complicated business entities and,
more importantly, without the complicated ramifications of
tax-deductible status. We are not a "public" organization. Neither are any of
these other groups. If you could bring us 20 people who each wanted to give
something like $5,000 and would only do so on a tax-deductible basis, then we
MIGHT want consider it at that time. But even then, I would first want to
evaluate the ramifications, the hassle and the expense involved in maintaining
such a status.

For where we are right now, I think our theme should be keeping things
simple. First of all, I don't see us needing to exceed that $25,000
mark in a given year to accomplish even our loftiest goals. So that figure
shouldn't be a concern for now. Secondly, to take on charitable status sounds
like we would be doing a lot of fund-raising just to keep the accountants and
attorneys in business.

I also think that keeping things simple allows the guys to concentrate on
supporting each other as alumni and remembering the memory of Rich, rather than
the "business" of maintaining a formal charity. I think we risk losing a lot of
good-will momentum if we take on too much.

If you feel strongly that this should be done, I think you need to bring to the
table the exact costs and the added duties that would involved the organization
so we could decide whether or not the ends justify the means.

Just my 2 cents.

Bruce


--- In newington_wrestling@yahoogroups.com, JonDKehl@... wrote:
>
> Bruce-
>
> I have spoken with two attorneys, and there has to be some entity. You
can
> not run a business, collect money, and operate without establishing
some type
> of entity. Either a sole prop, partnership, corporation, some type of
LLC,
> or a non-profit status. The only way donations can be deductible
legally, is
> if we are a non-profit. If not, monies brought in that are not given
out in
> a particular year would be subject to tax. Bank will open accounts
either
> as personal accounts, or businesses. If a business, there must be some
legal
> entity. Your figure of $25,000 may pertain to certain types of state
tax
> filing. I do not know. I know of no way to run an public operation
without
> some type of formal, legal entity. If you are aware of something
other, I think
> the alumni association should see the documentation. We can not assume
> things. We can not allow people to think their donations are
deductible because
> we omit to tell them that their donations will not meet the regs as a
> charitable donation.
> If you have any comments or questions, please call. 953-5546
> Jon Kehl
>