[Board] OSGeo vs 501c3 status - inpur required

[Daniel Morissette]

On 12-11-12 8:02 PM, maplabs at light42.com wrote:
> Members of the Board of Directors, OSGeo
>
>    in thinking about this a bit, it seems to me that more questions
> arise than answers ... If this decision does involve some amount of
> finality, then all the more reason to answer carefully. I don't
> understand this deadline - who set it, why it is, what are the
> alternatives if not ..


The IRS got back to us in September with some questions about our 
application, and a deadline to respond otherwise our application for 
non-profit status will automatically be rejected. We have requested two 
extensions so far, so we will need to respond soon. That's where the 
deadline comes from.

The IRS questions and alternatives have been discussed in a few threads 
on the board list in the last few weeks so you can find all the info 
there. Unfortunately the threads quickly get buried under more questions 
than answers as you wrote.


The options currently on the table are:

A- A non-profit 501c3 foundation with a focus on education with a new 
taxable subsidiary to handle the project sponsorship program and any 
other taxable activity that won't belong in the 501c3.

B- A non-profit 501c3 foundation with the educational focus, and drop 
completely the project sponsorship program and any other taxable 
activities (restricting ourselves to non-profit educational 
activities)... note that a conference like FOSS4G, other than for the 
(minor) sponsor advertizing aspect that comes with it, is a guenuine 
educational activity, so that should not be a problem

C- If we don't respond then I guess we'll be treated as a taxable 
corporation by default (this is my guess, not verified)... note that if 
our goal is not to make profits and manage our finances accordingly then 
we probably don't pay much taxes, but once again those are my guesses 
and would remain to be verified


My pref is to go for A if there is an interest in growing the project 
sponsorship program, or otherwise B if the majority decides to go for a 
leaner organization which is essentially a federation of projects with 
FOSS4G conference and other educational activities.

Daniel