[dayton-oracle-organizers] Information about incorporating the Dayton Oracle Users Group

From: Vicki L Blommel <vblommel@xxxxxxxxx>
To: dayton-oracle-organizers@xxxxxxxxxxxxx
Date: Thu, 6 Jan 2011 15:17:54 -0500

Organizers
I have shown the lawyer the IOUG guidelines.  Read his comments at bottom.

We would need to file taxes at the end of each year.
We have the funding now to incorporate.
We would be able to begin collecting dues for membership if we incorporate.
Also any sponsorship funding, as well as dues would be directly under DAY-O
control.
We would need to elect a Treasurer.

 Forward this to a member that could help with the decision to
incorporate.  Perhaps they could still attend our organizer meeting
tonite or email me so we can discuss.  We could plan another meeting as
there is much to do, perhaps in just a week or two.

Volunteer opportunities :
   APEX experience would be a great help.
   Someone with Accounting background needs to raise their hand to be
elected Treasurer..!      : )
   Assistance with meeting preparations.

++++++++++++++++++++
This is the feedback from a non-profit lawyer:

 Let me give you a very general response and thoughts on the cost of
incorporation and related tasks.

Though many people think that being a non-profit means the same thing as
being tax exempt, that is not the case. Being a non-profit corporation means
you have incorporated (under state law) to be a body corporate and will have
no shareholders or anyone to whom any surplus funds will be distributed. It
does not mean that taxes aren't payable or that "donations" to the
corporation are tax deductible. It does mean that there is a corporate
structure in place which provides the normal corporate protections (e.g.
limited liability). To incorporate as a non-profit corporation, I typically
charge between $800-1,000. That includes the state's filing fee. The cost
can be  more than that if things get very complicated.

If an entity wants to be tax-exempt, it has to be blessed by the IRS. That
requires a whole other filing. The cost associated with that can vary
widely. The IRS asks for a lot of information. Presuming the client is
willing to do the busy-work necessary, the cost of filing for 501(c)(3)
status with the IRS is in the $1,200-1,500 range. That too can increase if
the IRS requests a lot of follow-up or there are other complicating factors.
I would note that the guidelines you sent me speak about this and indicate
skepticism whether the IRS would give an organization such as yours
tax-exempt status. I would agree with that and would suggest that
unless/until you become a bigger organization (in terms of funding), it is
probably not worth the expenditure.

[dayton-oracle-organizers] Information about incorporating the Dayton Oracle Users Group

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