James West awards

[Abel Magwitch]

I have just learned that my state department of taxation has a judgement lien against my council. The council owes the state department of taxation $9937 dollars plus 5% interest from the original court date of November 2009. The council has simply made a deposit for now as the case is still active.

 

Of course I do not believe that the council told their recent James West recipients that their generous donations would be helping to pay for the court ruling against the council.

 

 

[OldGreyEagle]

There are lots of things I dont understand, but are not Councils Not for Profit organizations that don't pay taxes?

[Eagle92]

I'm not a lawyer, nor do I play one on the web, but my understanding is that if someone gives a donation to an endowment fund, that money can only be used to put in the endowment fund as placing it in the operating budge would be fraud. Again I'm not a lawyer, but when I was tasked with getting 4 West Awards as a DE, I was told specifically not to ask any FOS donors who reduce their FOS gift to give out a West Award.

 

[DancesWithSpreadsheets]

OGE, Tax Exempts don't pay income tax, nor in most places property tax. But they do pay employment taxes. If it's the state, as opposed to the IRS, I'd guess it was unemployment taxes, or maybe state income tax withholding.

 

Regards,

 

DWS

[OldGreyEagle]

well then, in the words of the immortal Emily Litella   "Never Mind"

[The Blancmange]

So this really has nothing to do with a James west fellowship other than the coincidence that the amount of the judgment is approximately the same as the minimum donation for 10 West fellowships? Did the Council have a bona fide dispute over the amount of the tax, or did somebody just screw up? Did they use endowment funds to pay the judgment?(This message has been edited by The blancmange)

[Oak Tree]

I guess if I made a James West donation, I'd assume the money was going to the council to fund their standard operations. Even if they keep "my donation" in a separate fund, it would just mean that they'd have to put less of their own money into that fund.

 

If the council is terrible at managing money, then maybe I don't want to make the donation. But I do assume that some money is being used to pay taxes.

[Abel Magwitch]

Blancmange, this situation is all but unknown. The council has made no mention of it what so ever and I am sure they want to keep it that way.

 

After all of the shenanigans that has happened in my council, I tend to check on things. I stumbled onto this while searching the court dockets. I have also found some convicted felons who are paraprofessionals those paid to be scoutmasters. It is public record, but generally, nobody is going to check on these things.

 

This lawsuit was filed soon after the previous SE got his promotion to national. The whole thing stinks.

 

I am intending to bring this issue up at the annual business meeting as I am a COR. I believe that one should know what's going on fiscally and legally within one's council especially when that council solicits funds from its members and parents.

(This message has been edited by abel magwitch)

[jhankins]

I'm not sure what the original post has to do with endowment gifts.

 

But a council can, by vote of the endowment administrators, borrow money from an endowment fund. There must be repayment terms and interest, though. My council borrow quite a chunk of change from the endowment after a merger and it made a big stink amongst the volunteers (as it should).

[Eagle92]

Oak,

 

That a big negative, West donations go into the council's endowment fund in which the principle isn't touched, and only the interest is used if needed.

 

 

They also have the Heritage Society and Founders Circle, I believe $5K and $10K endowment donations.

 

I know that councils use to have to get x number of West Awards per year. One council received a very large estate gift to the endowment, and every single Eagle Scout, SE, DFS and office staff member received the West Award that year. DEs were out of luck though.

 

[Oak Tree]

Ok, so what is the endowment fund used for?

 

If it just generates interest, and the interest is used to fund the council operations, then it's really just that my donation is providing money over a set of years. So maybe this year's donation won't get spent on the taxes, but the interest from the donation might be spent that way next year.

 

Still, good information to know about the endowment fund. At least it can't all get wasted at once.

[jhankins]

It can get wasted all at once if the endowment board offers a loan to the council with terms that fit the council's needs (whatever those might be).

 

Our local endowment is over $4 million in the hole thanks to loans that are still not repaid since 2006, and the council is out borrowing money from local banks AND National on top of it. That's just to keep the salaries flowing with -0- program improvement to camps from what the ranger can scramble (and no ranger at the cub camp period).

[Abel Magwitch]

Thanks jhankins for saying how it is in some councils. What I find most troubling in my council is how oblivious people are and how much they cannot believe that the Boy Scouts could do corrupt things. They are truly fooled.

 

 

[sherminator505]

"What I find most troubling in my council is how oblivious people are and how much they cannot believe that the Boy Scouts could do corrupt things."

 

I can see where you are coming from, and I'm sorry to hear that these things happen in your council, but in defense of those "oblivious" folks, isn't that the reputation that those of us in Scouting who try to do right would like to have?

[Abel Magwitch]

Yes sherminator, indeed yes. I myself had a hard time wanting to believe at first. One does not want to hear that there are bad things going on in Scouting.