Jump to content



Photo
- - - - -

Legal Issue for non-profit Chartering Organizations


  • Please log in to reply
25 replies to this topic

#21 DuctTape

DuctTape

    Junior Member

  • Members
  • 585 posts

Posted 21 January 2017 - 06:06 AM

If they have a fixed place of business per Norm Sugarman.


I am not sure what you mean here. I am especially wary of an absolutist criteria since sales tax is governed by state and local law which can and do differ greatly.
  • 0

#22 qwazse

qwazse

    Senior Member

  • Members
  • 6710 posts

Posted 21 January 2017 - 07:46 AM

If the IRS went after athletic booster clubs for stretching the limits on such fundraising for individuals, what's to stop them from going after BSA units especially those associated with private for-profits?  With the raising money for individual members, doesn't that also jeopardize a non-profit's exemption?  One might not see it a big deal for a single unit, but with the amounts of $$'s on the table, it could be a rather lucrative audit situation.

Senator Ryan must have been reading these blogs, thus his desire to lower corporate income tax. :p

The booster club illustration is out of context ... The fundraising for one member was on the scale of $10,000+ annually -- required for membership. Thus the IRS declared that to be an individual benefit.

So, it would be disingenuous to rule one youth organization's fees as an individual benefit and another a corporate benefit.

Scale matters. It matters a lot.
  • 0

#23 Lurking...

Lurking...

    Senior Member

  • Members
  • 12252 posts

Posted 21 January 2017 - 08:33 AM

If one steals $.01 or one steals $1,000,000, to a scout the issue isn't scale, the issue is honesty.

 

"Scale" is arbitrary and subject to "fuzzy logic".  If a penny doesn't matter, but $1,000,000 does, at what point was/is the tipping point.  Theoretically there could be a million answers to that question.

 

For Scouters teaching boys honesty, citizenship, and morality in their dealings with others, using a scale might not be a choice in the matter.  At least not for me.  Your mileage may vary.  :)


  • 0

#24 TAHAWK

TAHAWK

    Senior Member

  • Members
  • 2887 posts

Posted 21 January 2017 - 11:38 AM

I am not sure what you mean here. I am especially wary of an absolutist criteria since sales tax is governed by state and local law which can and do differ greatly.

Really good point.  Whether you are a non-profit, whether your sales are subject to sales tax, and even the rate you collect vary by state (lower rate in LA).  As of 2016, sales of Girl Scout cookies are subject to sales tax in three states.


  • 0

#25 scoutldr

scoutldr

    Senior Member

  • Members
  • 4462 posts

Posted 22 January 2017 - 04:42 AM

Wouldn't the Fair Tax make this a moot discussion?


  • 0

#26 DuctTape

DuctTape

    Junior Member

  • Members
  • 585 posts

Posted 22 January 2017 - 05:54 AM

Not really. The "fair tax" is basically a national sales tax which would mean scouts would likely need to collect it based on sales, as the proposed "fair tax" in the early 2000s included food.
  • 0




2 user(s) are reading this topic

0 members, 2 guests, 0 anonymous users


IPB Skin By Virteq