-----Original Message-----
From: vabn22 <vabn22@xxxxxxx>
To: rgmorley16 <rgmorley16@xxxxxxxxx>
Sent: Sun, Jan 8, 2017 8:08 am
Subject: Re: Attached Template - Income Statement/Balance Sheet
Mr Morley,
I have forwarded this instruction to the club members, and there is a
consensus opinion that
it is unclear what needs to be reported for this purpose. We may consult a CPA
for an opinion
on the reporting requirements, to wit, the individually owned modules, which
were constructed at
each owner's expense and are deemed by the club as personal property, just like
the engines and
consists which each owner runs at display.
Other club owned equipment, including rolling stock, tools, electrical
items, tables, track, funds,
etc are not in question and will be reported. We want to discuss this as a
group prior to reporting.
Dexter Oliver, Treas, River City 3 Railers
-----Original Message-----
From: Richard Morley <rgmorley16@xxxxxxxxx>
To: John Crockett <jctrainman@xxxxxxx>; Jack <hjschmidt38@xxxxxxxxxxx>; Dexter
Oliver <vabn22@xxxxxxx>
Cc: Bill Dessent (Services - 1) <bill.dessent@xxxxxxx>; Steve Stalnaker
<stevestalnaker@xxxxxxxxxxx>
Sent: Tue, Jan 3, 2017 11:51 am
Subject: Attached Template - Income Statement/Balance Sheet
Gentlemen, in an effort to comply with IRS guidelines regarding 501c3's and the
reporting of revenues, expenses, assets and liabilities, I am providing the
attached two tab template to each of you, as Treasurer of your respective SIG,
to fill in and return back to me no later than January 30th, 2017.
Gents, I want to stress that this is not a make work project. As a group it is
my understanding that while the RF&P might have always met the requirements for
reporting revenue per IRS guidelines in years past (regarding the 990
electronic postcard); it is highly unlikely that if push came to shove we would
be able to survive the scrutiny of an IRS audit should we ever be subject to
one. Not to mince words or anything but this is because our reporting rollups
that provide the foundation for our IRS reported revenues . . . well, they
suck. Why - because we don't have any, that's why.
The Model Railroad community is experiencing and has experienced over the past
few years an ever-increasing amount of non-monetary donations as attrition in
the MR world continues to increase at alarming rates. Our model railroaders are
dying off in very high numbers and there doesn't seem to be enough young people
interested in the hobby to take their place. In this day and age it is more
likely than not that families, who do not have any use or need for model train
related equipment after a loved one who was a modeler passes away, turn to the
donation route to jettison said inventory of same. All they ask in return is a
letter that will satisfy the IRS guidelines that will allow them to deduct
their donations on their form 1040s.
Enter the RF&P - which as a 501c3 is capable under the law of providing said
letters for those charitable donations. We have been approached and will
continue to be approached and sought out by families who want to donate their
loved one's inventory. These donations help our club by providing many MR goods
that can be used on the modules we make. In addition they have the potential to
generate revenue for us - revenues that if not handled correctly could subject
us to not only an IRS audit but throw us over the revenue threshold that might
jeopardize our 501c3 status. None of us wants that and in order to prepare for
the future we have got to get our records straight now.
Hence the attached. The first tab is an income statement for revenue and
expenses associated with what your SIG took in and disbursed for the year
ending 2016. This should be no big deal for at least two of the SIGS since you
are, for the most part, doing this now - and in most cases what you forward to
me for the year ending December 31st should suffice.
The second tab is a balance sheet for assets and liabilities. To my knowledge,
none of the SIGS have a balance sheet which essentially keeps a running total
for each of the respective with respect to value. It is especially important
when we must track inventories - which we are now required to do whenever we
accept a non-monetary donation. For the most part a balance sheet for each SIG
will probably be limited to Cash on hand at the end of the year in addition to
the replacement value (i.e. not depreciated) we put in our modules, our power
plants, our tools, any donations and our equipment.
Please do not manipulate the spreadsheets in any way, shape or manner. The
attached is not meant as a final product but simply a first blush at an
evolving finished product that would stand up to IRS scrutiny. I have purposely
not locked or frozen any of the cells or formulas but will do so if I have to -
so please do not fool with the order, the formulas etc.
Gentlemen, please do your best. It may look like an onerous task but it is
really quite simple and could probably be handled in a very limited amount of
time. Enlist the help of your SIG members and let's get it done. These are
safeguards that we should have been doing since our inception. You are welcome
to e-mail me with your questions. - RGM
