Talk:Form 1023 Draft

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Part XI - User Fee Information

I changed this:

  1. Have your annual gross receipts averaged or are they expected to average not more than $10,000? Yes

to this:

  1. Have your annual gross receipts averaged or are they expected to average not more than $10,000? No

because I think just through membership fees we are going to have more than $10,000, and its asking if we are going to have "not more than $10,000"

Good catch. I missed the "not". DaveMenninger 14:03, 12 August 2009 (UTC)

Notes from 08/17/2009

  • In Part IV it is probably alright to put down activities that we are not currently doing, but that we intend to do as long as we say that. We don't want to say we are doing something that we are not doing. The structure of the "Sample Activity" from HacDC's wiki is a good format. The most important part is the "Charitible, Educational, Scientific" paragraphs.
  • In Part V it is ok to put the address of the organization instead of people's home addresses.
  • In V.4 I've changed the no's to yes's. This is because if we ever do get big enough to have any employees, we will want to have these things. It does not mean that we have to do them right now since we do not have employees.
Question: Why wouldn't you put no and change it later. Adding any employee will change this form a lot. Currently we get to say no to almost everything because we don't pay ppl. Odds are we will never hire people full time. My 2 cents: because it will be years off to make so much money that we could pay for an employee and everything that goes with it (social security, insurance, etc.) we should just keep the forms simple and say no. --Craig
The reason is that putting "no" and then changing it later means filing additional paperwork when we want to change it. If we put "yes" now, it doesn't mean we actually expect to have any compensation arrangements, it just means that if we ever do have compensation arrangements, we will follow these practices, which are all in our best interest. That way if that ever did happen, we would not have to file forms saying we want to change our answers from "no" to "yes", the papers on file would already be right. Does that make sense? DaveMenninger 14:22, 18 August 2009 (UTC)
Well as long as they wont expect us to fill in compensation then audit us when we say we didn't compensate anybody on our taxes, I'm cool with that. --Craig
  • For VIII.4d we should only put Ohio or else we might have to file as a charitable trust in other states too. Since we don't physically go over to Kentucky, etc to ask for money this is ok.
Fine by me. --Craig
  • For Part IX.A: we will need to fill in 1 (misc cash donations including online tip jar, etc), 2 (membership fees), and possibly 7 (any other source of funds, like selling equipment), 9 (for example charging for classes), 20 (include internet cost), 23 (everything like office supplies, etc).
I don't think we need to fill out all sources...mainly because we don't know all of our sources....what if we decide to setup an ebay store to raise money for projects finished that we no longer want...or come up with some other event or game to raise money...there really is no telling. Best to keep this general (imo) --Craig
We are legally required to be as accurate as we can be here. We don't have to list every individual source. We have to put a number into each of those boxes though. Each of those boxes is just a total saying we spent (or expect to spend) approximately so much in each category. I hope you have kept records of our income and expenses. DaveMenninger 14:26, 18 August 2009 (UTC)
Yes I have a record our everything. I will be more than happy to give access to both paypal and the bank. If there is a certain level of detail or format that is desirable that would be nice to know since I'm only doing the financials because nobody else wanted to :/ --Craig
  • For Part IX.B: we will probably have stuff on lines 1, 8, 14 (if we include the fact that we owe Jason),
    • Also lines 11 and 18 should be equal. 11 - 16 = 17, 16 + 17 = 18
  • For Part X.5: we are probably an "h" but it is really important to get that right, so my mom is going to check at work.
  • For Part X.6, we need to look at this again. (My mom is going to check at work and see what the best way to answer this is.) It may be due to this question that it would be better to turn in the whole application later, after we have existed for longer and built up more records/history.
It's obvious I disagree with waiting. I would like to see the funds from the 29th party pay for our final paperwork and we get this out of the way. --Craig
I'm inclined to trust the experts on this. I really don't know why it has to be done so soon. The form is obviously designed to be filled out by organizations that have existed anywhere from 1 - 4+ years. Also, it may well be to our benefit to wait so we can get that "definitive ruling" instead of the "advance ruling". If we fill this out and send it in now, we will have to fill out more paperwork later to prove we did what we said we would do, but if we wait and ask the IRS to make a definitive ruling, they will look at our records and history and decide that we are indeed a charitable org. That is why it might be better to wait until we have completed at least one accounting yeat, so that we have more evidence to show that we are a charitable org. In addition, I think the fact that HacDC has not submitted their paperwork yet either is evidence that it might be smart to wait. Please explain to me if you have a different understanding of what Part X.6 means. DaveMenninger 14:31, 18 August 2009 (UTC)
Sure, whatever. I would rather do other things than this legal stuff anyhow. Why do today what we can put off until tomorrow. ;) --Craig