Dexter,
I will try to put together a spreadsheet on what I know of if you want
it in a spreadsheet format. I've got a pretty good handle on all the
power and command control stuff as well as a couple of engines.
Ken
On 1/9/2017 7:44 AM, (Redacted sender vabn22 for DMARC) wrote:
Morley's reply eliminates one concern. Let's now concentrate on an inventory of what the club
does own, and the respective values.
Dexter
-----Original Message-----
From: Richard Morley <rgmorley16@xxxxxxxxx>
To: Dexter Oliver <vabn22@xxxxxxx>
Cc: Bill Dessent (Services - 1) <bill.dessent@xxxxxxx>
Sent: Sun, Jan 8, 2017 12:02 pm
Subject: Re: Attached Template - Income Statement/Balance Sheet
Dexter, from the sounds of your SIG's situation your collective lives are much more simpler than the other two SIGs which do not have members who personally own the modules. Even though a member of either the Rantrak or VP&C SIG may take "ownership" of/for building a given module or the majority of a given module, said module is deemed to be owned by the respective SIG since the track, wire, structures, materials etc., have either been donated by the SIG or paid for by the SIG and/or paid for by the member who is then reimbursed by the SIG. Hence the modules of the Rantrak and VP&C SIGs belong to the SIG and thus the RF&P.
In your case, you would not report those personal modules since they belong to the member - i.e. they do not belong to the RC3R SIG. Hope this clarifies that situation. You should report anything that belongs collectively to the RC3R SIG. Hope that helps. - RGM
On Sun, Jan 8, 2017 at 8:08 AM, <vabn22@xxxxxxx <mailto:vabn22@xxxxxxx>> wrote:
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
<mailto:rgmorley16@xxxxxxxxx>>
To: John Crockett <jctrainman@xxxxxxx
<mailto:jctrainman@xxxxxxx>>; Jack <hjschmidt38@xxxxxxxxxxx
<mailto:hjschmidt38@xxxxxxxxxxx>>; Dexter Oliver <vabn22@xxxxxxx
<mailto:vabn22@xxxxxxx>>
Cc: Bill Dessent (Services - 1) <bill.dessent@xxxxxxx
<mailto:bill.dessent@xxxxxxx>>; Steve Stalnaker
<stevestalnaker@xxxxxxxxxxx <mailto: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
