Gentoo Archives: gentoo-nfp

From: Rich Freeman <rich0@g.o>
To: gentoo-nfp <gentoo-nfp@l.g.o>
Subject: Re: [gentoo-nfp] Re: [gentoo-project] Questions for Gentoo Council nominees: Gentoo Foundation - Treasurer Response!
Date: Fri, 05 Jul 2019 15:00:16
Message-Id: CAGfcS_mFnqAfP_7fj0StHc4m089d2ZLMtj-dOp_rNwYnSNkoDw@mail.gmail.com
In Reply to: Re: [gentoo-nfp] Re: [gentoo-project] Questions for Gentoo Council nominees: Gentoo Foundation - Treasurer Response! by Aaron Bauman
1 On Fri, Jul 5, 2019 at 3:45 AM Aaron Bauman <bman@g.o> wrote:
2 >
3 > On Wed, Jul 03, 2019 at 09:08:14AM -0400, Rich Freeman wrote:
4 > > On Wed, Jul 3, 2019 at 8:56 AM Michał Górny <mgorny@g.o> wrote:
5 > > >
6 > > > Are you aware if the fee is going to be the same if we
7 > > > go for proper non-profit?
8 > >
9 > > Do you mean 501c3 by "proper non-profit?" Or some other tax-exempt status?
10 > >
11 > > I think most around here have abandoned all hope of ever running our
12 > > own 501c3. A number don't even think we should try, and a 501c3 is
13 > > hard enough to get approved if you have a professional board all
14 > > towing the party line. If you get people making public statements
15 > > like we ought to be a trade association (which is non-exempt) it would
16 > > be even harder.
17 > >
18 >
19 > This is not true. A 501c3 is not some mysterious unicorn that no one can obtain.
20
21 I never claimed it was.
22
23 > Plenty of organizations gain tax-exempt status with the IRS by simply filing and
24 > following the law.
25
26 Absolutely true.
27
28 > We will be just fine if we decide to maintain a 501c3.
29
30 Not true at all. Lots of organizations would have no problems
31 becoming a 501c3. Gentoo is not those organizations.
32
33 If you want to be a 501c3 you need to spend several years working
34 towards that status. You need to present yourself as fitting into the
35 categories that the status pertains to. You need to file your taxes
36 on time and so on.
37
38 I can't tell you how many times I've seen Trustees post on this list
39 or on IRC saying that they don't think that we should even be a 501c3
40 and should be a non-exempt status like 501c6/etc. What is the chance
41 that we'll be able to refrain from having board members do that for 5
42 years or so? Heck, I'm skeptical that we'll ever manage to file our
43 taxes on time 5 years in a row, though I at least see that as being
44 conceivable.
45
46 And then we have our history of non-compliance. That will only make
47 things harder even if everybody does everything right.
48
49 So, yes, all things being equal some hypothetical organization that
50 does what Gentoo does could probably become a 501c3. However, Gentoo
51 isn't some hypothetical organization and all things are not equal.
52 We're an organization with many conflicting views on how it ought to
53 be operated, with members who aren't all that interested in running a
54 non-profit, and with relatively limited interest in fundraising/etc.
55
56 Now, I wouldn't be opposed to just letting people who want to try to
57 create their own 501c3 play around with it for another decade or two,
58 except that in the meantime I think we're avoiding putting effort into
59 other approaches that are more likely to work out, like joining an
60 umbrella.
61
62 --
63 Rich

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