RF&P is up against a rock and a hard place, and I believe they feel that they
must require any sig to comply to the best of their understanding of the law
My concern is the process of $ or gifts being reported to RF&P by RC3R and then
being used for the exclusive benefit of our club / what I will refer to as
income / whose is it and who controls it
It is not clear to me that we understand that process yet and I would like it
in writing for all to see and understand at a date certain
Regardless of my comments, RF&P are the ones to make the rules. We are one
vote. The government requires them to build the data stream based on their 501c
status and that will not change if we file for an independent 501c status
What might vary is our costs and income and the control we have over those
items.
I doubt if it will affect record keeping
I have more to say on this however, I would like to do so verbally
J
Sent from my iPad
On Jan 7, 2017, at 10:44 AM, Christopher Nagle
<christopher.j.nagle@xxxxxxxxx> wrote:
Dexter,
I fully agree with preparing an inventory of club-owned items. We should be
doing this anyways. As to modules… each module owner pays for his own module.
These are NOT club owned, they are not assets of the 501(c3) and are
therefore not reportable. These are individually owned items. The only module
that should have to be reported on a club asset balance sheet is the “Bridge
Over Geezer Gorge.” I’m not a tax expert, or an accountant… but IMO the
amount of money I put into my module is none of the government’s business
when it comes to 501(c)3 reporting. No more than the value of my personally
owned trains should be reported. I suspect that the other SIG’s may have more
club-owned modules than the RC3R does, I think this is where he is coming
from.
Chris
From: rc3r-bounce@xxxxxxxxxxxxx [mailto:rc3r-bounce@xxxxxxxxxxxxx] On Behalf ;
Of Redacted sender "vabn22" for DMARC
Sent: Saturday, January 7, 2017 10:23 AM
To: rc3r@xxxxxxxxxxxxx
Subject: [rc3r] Fwd: Attached Template - Income Statement/Balance Sheet
Gentlemen,
I resubmit this request from Mr Morley, due Jan 30. I need some
assistance to reply.
No doubt each module owner is familiar with his module, and can give some
feedback on its
value.
Regarding club equipment, perhaps we should prepare an inventory. That
would be
helpful in keeping track ( pun intended ) of the items.
I received our end of year account from Village Bank this week, and will
prepare a final
2016 account of our finances. There are several outstanding checks per the
bank, to wit:
No. Payee Amount Issue date
1110 Peter Condro $14.13 080516
1119 Chris Nagle $ 10.61 122416
1120 Bill Robertson $ 7.38 122416
1121 Chris Nagle $ 66.00 123116
The latter 3 should clear by the next bank statement; I urge the first
one to be
negotiated, or advise me other intentions.
Thanks, and Happy New Year to all.
Dexter Oliver, Treas.
-----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
