Congratulations! I know other user groups might be interested in this
option and sharing the process is appreciated.
Alfredo
On Tue, Jun 30, 2015 at 9:06 AM, Iggy Fernandez <iggy_fernandez@xxxxxxxxxxx>
wrote:
NoCOUG applied only once and was successful on the first attempt. I
believe that the key was the restatement of our articles and bylaws (upon
the advice of the CPA who handled our case) using a model template for
501c3 organizations. For good measure, our mission statement mentioned that
we do indeed give our members opportunities to hear viewpoints other than
those handed down from 400 Oracle Parkway.
I will share our application and documents with Mark and Tim and with
anybody else who may be interested (send me an offline email).
Iggy
------------------------------
From: mwf@xxxxxxxx
To: tim@xxxxxxxxx; oracle-l@xxxxxxxxxxxxx
Subject: RE: OT: 501(c)3 certification for Oracle user groups
Date: Tue, 30 Jun 2015 00:44:29 -0400
Congratulations to both RMOUG and NoCOUG on achieving 501(c) 3 status.
Between 1988 (eotopica99.pdf) and an update in 1996 changes in IRS policy
changed a lot. We probably do need to update our document from “will
probably be denied” to something more hopeful and cite the experiences of
both RMOUG and NoCOUG.
In 1990 when I help found the OAUG both Bechtel’s general council and
several tax issue oriented law firms were consulted and the universal
opinion at that time was that due to the Prime computer users group and
Guide users group court rulings we had zero chance of success in gaining
tax exempt status (tax exempt as distinct from not for profit). The IOUG
received similar advice, circa 1993, if memory serves.
The rulings and advice from law firms were not myths. Three filings and a
four year perseverance required by RMOUG underscore the very real
difficulties even as late as 2003.
Tax exempt status is a desirable outcome and I know richly deserved by
RMOUG, for example, not least because of their contributions to high school
education.
Once a local, regional, or sig users group achieves critical mass for the
undertaking it is well worth considering. If RMOUG and NoCOUG can share
what they regard as key positives of their applications from the IRS
viewpoint, that would be great. The prevailing attitude at the IRS has
clearly evolved from what it was in the wake of the Guide and Prime rulings.
Again, congratulations!
mwf
*From:* oracle-l-bounce@xxxxxxxxxxxxx [mailto:
oracle-l-bounce@xxxxxxxxxxxxx] *On Behalf Of *Tim Gorman
*Sent:* Monday, June 29, 2015 9:02 PM
*To:* oracle-l@xxxxxxxxxxxxx
*Subject:* Re: OT: 501(c)3 certification for Oracle user groups
RMOUG initiated efforts to obtain 501(c)3 status in late 2003, submitted
three times, and achieved the status in late 2007. RMOUG was also
incorporated in 1996 as a 501(c)6, but I don't believe the 501(c)3 status
was backdated. So in that respect, NoCOUG is an official tax-exempt
charitable non-profit since well before RMOUG. :-)
Congratulations!
On 6/29/15 17:39, Iggy Fernandez wrote:
Following the trailblazing path set by RMOUG, NoCOUG has received 501(c)3
exemption from the IRS. The effectivity date was the date of NoCOUG
incorporation in 1996. This busts the myth that Oracle user groups are not
eligible for 501(c)3 exemption.
http://collaborate13.ioug.org/d/do/2266
The IRS’s concern is that a computer user group supporting only part of an
industry provides
some members of the industry with an advantage over others not supported
by the group. The
IRS will look at the group’s primary purposes, activities, and membership
to determine whether
the group benefits the entire industry or only a segment or a sole
brand/manufacturer. Simply by
having a nametag like “Oracle User Group” will send red flags to the IRS
that your group is
primarily supporting one brand or manufacturer (i.e. Oracle Corporation).
If your user group can
make a case that it supports the entire software industry then you may be
able to obtain tax
exemption under the 501(c) (6) rule. To obtain tax-exempt status under
Section 501(c) (3), a
group must be organized exclusively for one or more of the following
reasons (among others):
charitable, religious, educational, scientific, or literary. Computer user
groups normally do not
qualify under Section 501(c) (3) because their purposes and activities
rarely are exclusively
charitable or educational, etc. Although your main activity may be
education, if it is organized to
help users of a certain brand or manufacturer, rather than the public as a
whole, tax exemption
will probably be denied.
Iggy
