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To: "William L. Thomson Jr." <wlt@...>
From: Matthew Summers <quantumsummers@g.o>
Subject: Re: Tax return and accounting discrepancies
Date: Wed, 23 Mar 2011 20:40:30 +0000
In the interest of full disclosure I make the following points.

1. I am a business owner.
2. I work regularly with a CPA firm
3. I work regularly with attorneys specializing in contract law, tax
law, and IP law, but I am not an attorney.
4. I joined the Gentoo Foundation as an officer at the time of the
crisis (09/2008) to assist in the recovery of the Foundation.
5. The Gentoo Foundation has been and is in good standing with NM,
having filed all necessary documents on time since I joined.
6. I live in the US.
7. The Gentoo Foundation has been completely transparent regarding
finances since the recovery.


William,

I appreciate your perspective regarding the Gentoo Foundation.
Unfortunately, the main reason the Foundation has not achieved proper
status with the IRS is directly due to the irresponsibility and/or
negligence of the former (pre-2008) board of trustees. I do not say
this to be mean-spirited, please note. This irresponsibility is
manifest in the fact that correct status with the IRS was not filed
within 27 months of the start of the organization, which would be
sometime in 2004. It is that simple. This has in fact been a huge
obstacle to the development of the Foundation as a non-profit entity.
I was not involved with Gentoo, except as a user, during that time.
Now, you have made and continue to make many claims in your various
statements regarding the Foundation, some are quite novel while others
are rather unhelpful. Its completely true that the Foundation is not
what it could be. I perhaps recognize this more than others given that
I work closely with non-profits on a daily basis and know what the
world holds in store for a fully operational 501(c)(3) Gentoo
Foundation. I understand your frustrations regarding action and/or
inaction within the board, but you must realize that the Foundation is
not a dictatorship. We, the board I mean, are working together towards
the common goals of Gentoo, while taking on a rather large legal
responsibility. You make many valid points regarding the need for
financial professionals, etc, and I can assure you that I have used my
CPA for many things Gentoo, paid for out of my own pocket. I am happy
to do that for now, since paying an actual CPA to handle an
organization like the Gentoo Foundation can cost in excess of $1200
per month. I think you may agree that the Foundation cannot afford
this. The values you quote for income are skewed since Google paid us
for previous years GSoC. The actual income of the Foundation on a
yearly basis averages less than $12,000. Further, I have used my
attorneys for various bits and the Foundation has been assisted by the
SFLC on various issues.

As I see a few more emails from you coming down the line, I will
address those now. You are stirring the pot, sir. Please refrain from
this as it does no good. You are attempting to scare people by your
statements and I will not stand for it. Its quite clear that you are
misinformed regarding the status of the Gentoo Foundation with the
IRS. We, due to what I mention above, never received non-profit or
tax-exempt status. In fact, that has been very difficult, and it's
something we have been working on for many months now.

The Foundation is in no real danger. Yes, we will likely have some tax
penalties to deal with, however the Foundation's income has been well
below federal minimums, so those penalties will be low. This is
especially true if we are able to make a convincing case regarding why
the Foundation did not observe the 27 month guideline in our 1023
application.

All of this is actually being dealt with by competent individuals,
despite what you may believe. What was left by the old trustees was a
mess that will take awhile longer to sort out, but have no fear we
will sort it out.

Lastly, I am preparing a proposal for review by the other board
members that will address much of what you are taking issue with, as I
believe at this point its time to bring in some funded professional
assistance. I would highly encourage you to review the logs of our
past meetings as I think you will see that we are addressing most if
not all of your concerns.

Thank you very much for your interest in the Gentoo Foundation and its
continued health.

Kind Regards,
Matthew Summers
-- 
Matthew W. Summers


Replies:
Re: Tax return and accounting discrepancies
-- William L. Thomson Jr.
Re: Tax return and accounting discrepancies
-- Roy Bamford
References:
Tax return and accounting discrepancies
-- William L. Thomson Jr.
Re: Tax return and accounting discrepancies
-- Rich Freeman
Re: Tax return and accounting discrepancies
-- William L. Thomson Jr.
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