[Board] OSGeo vs 501c3 status - inpur required

[Seven (aka Arnulf)]

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On 11/14/2012 09:55 PM, Frank Warmerdam wrote:
> On 12-11-13 07:39 AM, Daniel Morissette wrote:
>> 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
> 
> Daniel,
> 
> I believe this is the option I would be in favor of.  It does not 
> constrain us within a narrow educational mission defined by the 
> IRS, and does not require the complexity of for-profit
> subsidiaries.
> 
> I've tried to do a little research on non-501(c)3 non-profits in
> the USA the last couple days but without all that much progress.
> It would be nice to know the downsides of this approach beyond some
> taxes on retained earnings.
> 
> Best regards,

I concur with Frank. Aim to not make any profit and if there is any
pay due taxes. Bending the organization to fit under non-committal US
tax office whims is not really an option. *

Before a final decision is taken we should have a good understanding
of how much tax has already accumulated and whether we can actually
pay it without breaking our budget. It should be possible to calculate
what we owe with little effort and some external help. If it breaks
our budget think up plan b.

If the need for a tax deductible legal entity in the US takes more
concrete form then consider founding it through a Local Chapter. This
is not global OSGeo's job on a global level. Other LCs already have
this in place for years.

Later we might also want to consider whether FOSS4G should be
funded/seeded through Local Chapters. I had an interesting chat around
that topic with Marco Lechner (FOSSGIS president). It is anyway almost
like that already. We would have to think up something for areas we
want FOSS4G to go but where there is no LC or seed funding available.
But those areas are becoming sparser anway. Greenland maybe.

Cheers,
Arnulf

* someone mentioned a US software industry complaint claiming that
Open Source non-profits distort the market.
1. This is probably not even too far fetched.
2. I don't think that OSGeo needs to be a non-profit or charitable to
be successful.

- -- 
Seven of Nine
http://arnulf.us/Seven
Exploring Body, Space and Mind
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