Gentoo Archives: gentoo-project

From: Rich Freeman <rich0@g.o>
To: gentoo-project <gentoo-project@l.g.o>
Subject: Re: [gentoo-project] Questions for Council candidates: Future of the Foundation
Date: Mon, 29 Jun 2020 15:58:57
In Reply to: Re: [gentoo-project] Questions for Council candidates: Future of the Foundation by Ulrich Mueller
1 On Mon, Jun 29, 2020 at 4:27 AM Ulrich Mueller <ulm@g.o> wrote:
2 >
3 > > * long-term continue to exist as-is non-501c6 state
4 > > * finish 501c6 state
5 > > * convert to 501c3 in some way
6 >
7 > If it continues to exist, then one of the two tax-exempt states. I am
8 > not familiar with the details, so I don't know what the legal obstacles
9 > for either of them are. (As I understand it, 501c3 is the equivalent of
10 > "gemeinn├╝tzig" in Germany.)
12 I believe 501c6 is relatively easy to do, but donations received are
13 not deductible to the donor (something increasingly less relevant in
14 the US due to the increase in the standard deduction). 501c3 is hard,
15 because it is actually recognized as a charity.
17 Examples of 501c3s:
18 SPI
20 EFF
21 American Red Cross
22 Amnesty International
23 Doctors Without Borders USA
25 Examples of 501c6s:
27 Linux Foundation
28 Bitcoin Foundation
29 National Football League (the other football) - this might actually be
30 in a state of flux/transition away from this status
31 US Chamber of Commerce
32 Distilled Spirits Council of the United States
33 American Petroleum Institute
34 American Medical Association
35 Tobacco Merchants Association of the United States Inc
37 Basically 501c3 has to demonstrate a benefit to the public (but they
38 cannot advocate/campaign for politicians), and 501c6 has to
39 demonstrate that they primarily benefit other corporations/trades/etc
40 (they're exempt under the logic that they serve to increase the
41 profits of other organizations that do pay taxes). The bar is
42 obviously lower for 501c6 but the benefits of this status are also
43 limited.
45 IMO 501c3 is more in keeping with our community-based tone, but I
46 started caring a lot less about this after the recent US tax changes
47 which makes this status almost irrelevant to anybody who isn't a
48 fairly large donor (the benefit applies if you cumulatively donate to
49 a lot of orgs in general - not just a large donation to one org). I'm
50 not sure that 501c6 really reflects where we want to be, but it might
51 save us some tax dollars. I'd be interested in just how much it would
52 actually save us though - it might make sense to just be a regular
53 corp from an IRS standpoint (which is very little red tape if you pay
54 your taxes, and it results in almost no restrictions on what you can
55 do - corporations are people too after all...).
57 --
58 Rich
60 --
61 Rich