[Foss4g2008loc] budget comment summary and response

[Frank Warmerdam]

Gavin Fleming wrote:
>     * Frank and Dave M: "Note also that the revenues and expenses for
>       the conference are the single largest component of the OSGeo
>       budget, and go a long way to satisfying the needs of our
>       non-profit  501(c)(3) status. This means we need to take
>       particular care to ensure any contracting etc.. is handled
>       appropriately to ensure we can count these funds towards OSGeo's
>       overall revenues/expenses." 
 >
 >    A: I'm not sure how relevant this is
>       if I read it correctly. OSGeo has no revenue or expenses at
>       present relating to this conference. Once the budget is approved
>       and an agreement between GISSA and OSGeo signed, we'll know the
>       extent of OSGeo's investment / expenses / risk and potential
>       revenue / profit share. Carrin is working on the agreement at
>       present. Dave M, please pick up the next version of the budget
>       that gets sent to the LOC in the next day or two and take that to
>       the Finance Committee for consideration, along with the (draft)
>       agreement that Carrin should be sending out soon. 

Gavin,

In order for OSGeo to qualify as a 501(c)3 (charity) organization under
US tax law we need to demonstrate "broad support".  The criteria are
(roughly) to demonstrate that our financial support comes from a large
number of sources.  By including the conference directly as an OSGeo
activity all the individual registration fees count as financial support
to OSGeo for the 501c3 purposes.  But to do this, the conference needs to
be "on our books".  Dave is pointing out that some care may be required
in order to structure the conference accordingly.

If we don't do that, then we may run into issues with the IRS.

I'll avoid commenting on the rest of the points since others seem to
have things well in hand.

Best regards,
-- 
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I set the clouds in motion - turn up   | Frank Warmerdam, warmerdam at pobox.com
light and sound - activate the windows | http://pobox.com/~warmerdam
and watch the world go round - Rush    | President OSGeo, http://osgeo.org