Chris is exactly right on personally owned property. Only club property needs
to be valued. I agree with Jerry that additional clarity on what is needed by
the RF&P would be helpful.
John
-----Original Message-----
From: Christopher Nagle <christopher.j.nagle@xxxxxxxxx>
To: rc3r <rc3r@xxxxxxxxxxxxx>
Sent: Sat, Jan 7, 2017 10:44 am
Subject: [rc3r] Re: Fwd: Attached Template - Income Statement/Balance Sheet
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
