Why is the RPF not incorporated?
- Thread starter J.Max
- Start date
Jedirick
Sr Member
Is it necessary to be a non-profit to ask for donations from members? No. In fact, looks like we even have non-members donating. If someone only wants to donate to non-profit organizations that's understandable. Everybody has a different criteria for how and where they spend their time, effort and money.
Non-profit was looked at after leaving Prop-planet. IIRC 501c3's process is time consuming and meeting non-profit requirements takes some additional husbandry over that of other small corp options.It appears that an LLC may serve our forum well and keep operation simpler and not as time demanding. Both donations spent on operating this forum and time spent staffing this forum are voluntary. Hopefully legal staffers like Obi Sean Kenobi and Squirk who have helped us before, can guide us there.
Non-profit was looked at after leaving Prop-planet. IIRC 501c3's process is time consuming and meeting non-profit requirements takes some additional husbandry over that of other small corp options.It appears that an LLC may serve our forum well and keep operation simpler and not as time demanding. Both donations spent on operating this forum and time spent staffing this forum are voluntary. Hopefully legal staffers like Obi Sean Kenobi and Squirk who have helped us before, can guide us there.
exoray
Master Member
There is a huge advantage to incorporating as a real non-profit corporation...
First the donors (members) can claim a legit tax deduction for the donation... As it stands now if they attempted to claim the donation it could lead to audits...
Second the RPF "owners" don't have to claim the donated money as income and pay income tax on it...
Third protection of personal assets of the RPF "owners" or at least the person handling the money...
First the donors (members) can claim a legit tax deduction for the donation... As it stands now if they attempted to claim the donation it could lead to audits...
Second the RPF "owners" don't have to claim the donated money as income and pay income tax on it...
Third protection of personal assets of the RPF "owners" or at least the person handling the money...
<div class='quotetop'>QUOTE(exoray @ May 25 2006, 06:56 PM) [snapback]1250808[/snapback]</div>
Yes, there are advantages, but as Rick said, there are costs and administrative headaches to weight against that. He would know more about the amounts of money involved as far as "donations" go. I would hazard a guess and say that the tax benefits, overall, would be minimal.
As far as protecting personal assets, that's a legitimate point as well. There's a good bit of emerging case law insulating board owners and moderators from liability for the posts of its members. I'm not sure how far that protection would extend to our unique circumstance.
It's not a bad idea, but pros and cons definitely have to be weighed, especially given the somewhat transient nature of the people behind the scenes here. What may seem like a great idea to some might be an administrative hassle to someone else who appears on the scene later.
Yes, there are advantages, but as Rick said, there are costs and administrative headaches to weight against that. He would know more about the amounts of money involved as far as "donations" go. I would hazard a guess and say that the tax benefits, overall, would be minimal.
As far as protecting personal assets, that's a legitimate point as well. There's a good bit of emerging case law insulating board owners and moderators from liability for the posts of its members. I'm not sure how far that protection would extend to our unique circumstance.
It's not a bad idea, but pros and cons definitely have to be weighed, especially given the somewhat transient nature of the people behind the scenes here. What may seem like a great idea to some might be an administrative hassle to someone else who appears on the scene later.
Well to quote my favorite band, Spinal Tap...
"Gimme some mon-ayyyy..."
"Gimme some mon-ayyyy..."
exoray
Master Member
<div class='quotetop'>QUOTE(squirk @ Jan 25 2007, 09:37 AM) [snapback]1404635[/snapback]</div>
Tax benefits for the staff no, but tax liability yes...
$1000s of dollars of unclaimed, untaxed income (the donations) funneled through personal accounts?
Wouldn't want to be there in an audit...
Tax benefits for the staff no, but tax liability yes...
$1000s of dollars of unclaimed, untaxed income (the donations) funneled through personal accounts?
Wouldn't want to be there in an audit...
Jedirick
Sr Member
Annual RPF accounting and tax filing are handled through a CPA.
Pretty cut and dried. All income comes in through the Paypal account and and all the "out go" is paid to software companies and internet servers through paypal.
Flexibility of an LLC is much more attractive to the needs of the RPF.
Than the non-profit process. I'm involved in 2 non-profit organizations now and have served on boards of other's previously. It ain't a cake walk especially for the first couple years..
Pretty cut and dried. All income comes in through the Paypal account and and all the "out go" is paid to software companies and internet servers through paypal.
Flexibility of an LLC is much more attractive to the needs of the RPF.
Than the non-profit process. I'm involved in 2 non-profit organizations now and have served on boards of other's previously. It ain't a cake walk especially for the first couple years..
exoray
Master Member
<div class='quotetop'>QUOTE(Jedirick @ Jan 26 2007, 09:46 AM) [snapback]1405328[/snapback]</div>
Well I seem to have missed the announcment that the RPF was now a LLC and that the accounting and tax filings were being handled by a CPA... If this is the case then all should be good...
Well I seem to have missed the announcment that the RPF was now a LLC and that the accounting and tax filings were being handled by a CPA... If this is the case then all should be good...
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