[TriLUG] Upcoming vote on TriLUG non-profit status
jtrilug at indythinker.com
Tue Feb 1 11:57:14 EST 2011
On 02/01/2011 10:36 AM, stan briggs wrote:
> to address the question of if we are or are not an NP (non-profit): yes, we are:
Thanks for the link, Stan. Also, thanks to everyone for your thoughtful
discussion on this issue.
According to the records, we are still incorporated with the NC
Secretary of State as a Non-Profit corporation. The NC SOS has contacted
Jeri Gloege, the registered agent, to threaten "administrative
dissolution". There is a link to an FAQ about administrative dissolution
on this page:
Jeri Gloege no longer lives in North Carolina. She has been very
generous in helping us to resolve this matter, but she will no longer be
able to serve as the registered agent. One of the things we would need
to do in order to keep the corporation is to change the registered agent
to someone who lives in NC.
I do not remember the exact reason they are currently threatening
administrative dissolution. It may be because Jeri moved out of the
state or it may be because she asked the IRS to cancel our 501(c)(3)
classification. I'll explain more about that in a minute. Our tax exempt
status with the IRS is a separate issue from our corporate status.
Not all nonprofit corporations in NC are tax-exempt. Some pay taxes just
like a normal corporation. That is an option available to us and, as
pointed out in earlier emails, being recognized as a nonprofit
corporation might help reassure a potential donor that we are a
Also, please note that administrative dissolution is reversible. There
may be additional paperwork required and an additional fee, but there is
a window of time during which we could reinstate the corporation.
Rather than going into great detail about this, I'm going to point
everyone to this link again:
See the documents titled "Nonprofit Corporation" and "Nonprofit
Guidelines". There is a lot of useful information in there. If we vote
to retain our corporate status, it would be great to have multiple
members who are familiar with the requirements around it.
Now. Let's move on to our tax-exempt status with the IRS. Jeri chose to
cancel our 501(c)(3) status based on advice from her attorney. She had
previously gotten a 501(c)(3) classification for TriLUG in 1999. At that
time, tax-exempt corporations with annual revenue less than $25,000 were
not required to file any tax returns. In 2007, the IRS began requiring
an annual filing, even for nonprofits collecting less than $25,000, but
they provide a short-form postcard that has only eight simple questions
you must answer:
I am still not clear on why her attorney advised her to cancel the
status, but she had already done so before anyone on the current
steering committee found out about it. As I understand it, it may be
possible to reverse this process.
Whether it can be reversed or not, we could always make a fresh
application for 501(c)(3) status. I suspect that reinstating our
original tax-exempt status would be easier than making a fresh
application. If we decide that we want to be a 501(c)(3), we should
probably pursue that.
Personally, I think that we should remain incorporated and that we
should get our 501(c)(3) classification back. I am glad to see that some
support for this is building on the mailing list.
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