[Board] OSGeo vs 501c3 status - inpur required

[mlucas17 at mac.com]

My preference would be to go for B.  For profit project funding seems to be a tax liability and we should avoid it.  There are other mechanisms available for projects that want to accept funding - maybe Location Intelligence, sub contracting or consulting directly with the funding organization.  

Mark

On Nov 13, 2012, at 10:39 AM, Daniel Morissette <dmorissette at mapgears.com> wrote:

> 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
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