Sam, please understand that I was indeed summarizing and as I mentioned, somebody else might have heard it differently than I. (Nah!!! <VBG>) However, if I remember the reasons for establishing a Trust immediately, (and yes, I know that you and Evan both work with Tax Law, and I am only related by experience and Motherhood:-), it was because the Board was asking the most expeditious way to start collecting donations. It seemed that the suggestion from Mr. "Ed" was that 3 entities could be considered, and he discussed each of them. The Board seemed to lean toward the Trust as the fastest with the least fuss. (LIke that that legalese I use???) I seem to remember Mr. "Ed" saying many other things... Establishing whatever entity in a state that would be most advantageous, the cost to start a Corporation, etc., etc.... This was, as I remember, a conversation that lasted at least over 30-40 minutes with a lot of details. Bill Donnely (?), the forensic Accountant, also had question that I didn't jot down. Discussing this on the list is not fair to the details of the conversation or the amount of questions that were thrown back and forth with Mr. "Ed's" answers and explanations. I had only hoped to let the list know of the seriousness and complexity of the situation, and what I understood of it... no matter how little:-) Thank you for your answers here, they are much appreciated. And your pups are DARLING! and eye candy when I wanted a break from my notes!!! :-) Storm On Jan 30, 2011, at 6:34 PM, Samuel Israel wrote: > I am sorry that I missed the conversation yesterday with the tax > attorney > concerning 501(c)(3) status. I read through Stormy's summary and > there are a > few things that I question. for example, he suggested that we form > a new entity > that should take the form of a trust as opposed to a corporation. I > can tell > you that you rarely see attorney's use trusts to be 501(c)(3) > organizations > today since most practitioner's agree that fiduciary duties are > greater for > trustees than for members of a board of directors. I also can't > understand why > a trust would be easier to create than a corporation. > Second, we already have a 501(c)(3) organization. there may be > simple ways to > modify this entity to allow it to conduct some additional activities. > > Third, I probably would agree with him that it may be easier to > qualify as a > 501(C)(4) than a 501(c)(7); however, I am not sure if it is worth it > since I > don't know what our income and expenses look like. > > In any case, the Board or whatever committee was set up should feel > free to pick > my brain for nothing. This is an area of which I am familiar and > certainly can > reduce costs to the club. I have been practicing tax law since 1982 > and have a > lot of experience working with non-profits, including 501(c)(4) and > (c)(7) > entities. > > Sam > = > = > = > = > = > = > ====================================================================== > POST is Copyrighted 2011. All material remains the property of the > original author and of GSD Communication, Inc. NO REPRODUCTIONS or > FORWARDS of any kind are permitted without prior permission of the > original author AND of the Showgsd-l Management. ALL RIGHTS RESERVED. > > Each Author is responsible for the content of his/her post. 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NO REPRODUCTIONS or FORWARDS of any kind are permitted without prior permission of the original author AND of the Showgsd-l Management. ALL RIGHTS RESERVED. Each Author is responsible for the content of his/her post. This group and its administrators are not responsible for the comments or opinions expressed in any post. ALL PERSONS ARE ON NOTICE THAT THE FORWARDING, REPRODUCTION OR USE IN ANY MANNER OF ANY MATERIAL WHICH APPEARS ON SHOWGSD-L WITHOUT THE EXPRESS PERMISSION OF ALL PARTIES TO THE POST AND THE LIST MANAGEMENT IS EXPRESSLY FORBIDDEN, AND IS A VIOLATION OF LAW. VIOLATORS OF THIS PROHIBITION WILL BE PROSECUTED. For assistance, please contact the List Management at admin@xxxxxxxxxxx VISIT OUR WEBSITE - http://showgsd.org SUBSCRIPTION:http://showgsd.org/mail.html NATIONAL BLOG - http://gsdnational.blogspot.com/ ============================================================================