Re: [gentoo-nfp] Re: [gentoo-project] Questions for Gentoo Council nominees: Gentoo Foundation - Treasurer Response!

[Michał Górny]

On Wed, 2019-07-03 at 17:12 +0200, Michał Górny wrote:
> On Wed, 2019-07-03 at 09:34 -0500, Matthew Thode wrote:
> > On 19-07-03 09:08:14, Rich Freeman wrote:
> > > On Wed, Jul 3, 2019 at 8:56 AM Michał Górny <mgorny@g.o> wrote:
> > > > Are you aware if the fee is going to be the same if we
> > > > go for proper non-profit?
> > >
> > > Do you mean 501c3 by "proper non-profit?"  Or some other tax-exempt status?
> > >
> > > I think most around here have abandoned all hope of ever running our
> > > own 501c3.  A number don't even think we should try, and a 501c3 is
> > > hard enough to get approved if you have a professional board all
> > > towing the party line.  If you get people making public statements
> > > like we ought to be a trade association (which is non-exempt) it would
> > > be even harder.
> > >
> > > However, I imagine most CPAs would charge more for a tax-exempt org as
> > > there is MUCH more scrutiny on their operations.  I'd also argue that
> > > we would need to be spending more on compliance in general or
> > > consulting ad-hoc with professionals to not run afoul of the law.
> > >
> > > If you meant a non-profit that isn't tax-exempt then I don't see why
> > > their fees would be any different, but there really isn't any big tax
> > > benefit to Gentoo to having one status or another as far as I can
> > > tell.  The IRS taxes non-profits the same as for-profit companies if
> > > they aren't tax-exempt.  It is the exempt status that comes with all
> > > the rules and scrutiny.
> > >
> > > Usually in the US when people say "non-profit" they tend to mean a
> > > tax-exempt status like 501c3, but these are of course not the only
> > > sorts of non-profit companies.  The US National Football League (the
> > > kind where you usually don't hit the ball with your foot) is
> > > non-profit, but definitely not tax-exempt, and I can only imagine what
> > > their revenues are like.
> > >
> >
> > The fees remain the same for a c3 (1500 per year).  We've talked to the
> > Accounting firm about our options in attaining c3 status.  There are a
> > couple of ways we could go about it.  Filing fee remains the same (~1k
> > iirc) for all options.
> >
> > 1. fix all back taxes (10 years) then refile, this would cost 9k more
> > for the back taxes alone (4 years was recently approved).
> >
>
> Plus $15000 in CPA fees, correct?  Or do we assume a different fee for
> that part?
>

Ok, Matthew corrected me on IRC.  He meant $9k of CPA fees for
the remaining 6 of 10 years.

-- 
Best regards,
Michał Górny