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How's the 501(c)(3) Going?

Started by 青山 素子, November 15, 2011, 03:54:33 PM

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青山 素子

So, it's been almost a year since the non-profit organization was established. How's the effort going on gaining 501(c)(3) status from the government? I mean, that was one of the major selling points for the organizational structure. I know a pledge was made to be much more open than the old organization, but nothing has been said about this, so I just thought I'd ask. It might be important for the people making donations so they can claim them as charitable donations, right?

BTW, I guess that means the company will be paying taxes this year since it's not got the non-profit tax filing status yet.
Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


Kindred

it's going....  it's a complicated process with 30+ pages of application.

and yes, we'll have to file taxes.
Слaва
Украинi

Please do not PM, IM or Email me with support questions.  You will get better and faster responses in the support boards.  Thank you.

"Loki is not evil, although he is certainly not a force for good. Loki is... complicated."

青山 素子

Quote from: Kindred on November 15, 2011, 04:14:23 PM
it's going....  it's a complicated process with 30+ pages of application.

So... if you managed to handle only a page a day, that means it would take about a month to complete. If you only did half a page a day, that's two months. It's been over five times that length by now. You can't mean to be saying that you've barely even started, could you?


Quote from: Kindred on November 15, 2011, 04:14:23 PM
and yes, we'll have to file taxes.

As far as I understand, even federally-recognized non-profit groups have to file tax reports. I specifically said pay taxes. I'll take the response to basically be an affirmative to that last part. Luckily, the taxes have historically always been fairly low because of the low (in relation to other businesses) income.
Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


Thantos

Quote from: 青山 素子 on November 15, 2011, 03:54:33 PM
BTW, I guess that means the company will be paying taxes this year since it's not got the non-profit tax filing status yet.
As I understand it, if the 501(c)(3) is filed within a specified time period (I believe 27 months) from the date of creation then the tax exempt status can be back dated to the creation date.  So they might have to pay this year but it can be recovered later.

青山 素子

That's good to know.

However, I really hope that the application can be completed this year. For such an important goal, it seems to be moving awfully slow. Kinda like the whole LLC transfer...
Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


青山 素子

I guess the silence says it all. Looks like the usual slacking that seems to be a mainstay now. Respond to try and look good, then when you're called on it, stay quiet so as not to look bad.

Sad, really. I've lost a lot of respect and confidence in the people running the show.
Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


Kindred

oh, please....


the board is working on the application. I already said that.   What else is there to say until the application is actually submitted?
Слaва
Украинi

Please do not PM, IM or Email me with support questions.  You will get better and faster responses in the support boards.  Thank you.

"Loki is not evil, although he is certainly not a force for good. Loki is... complicated."

青山 素子

That's some slow board. The announcement of the forming of the company was September 23, 2010. Are you telling me that it takes over 14 months to complete a 30 page application? I understand there may be some delays in needing to get information for the application, but I would hope that it wouldn't take over one full calendar year!

So... let's see... 14 months as a company, and the following have managed to be accomplished:


  • Transfer from LLC to new organization
  • Release of SMF 2.0.0
  • Release of SMF 2.0.1 (security fix)
  • Release of SMF 1.1.14 (security fix)
  • Release of SMF 1.1.15 (security fix)

So... the new organization managed to complete some legal paper that should have taken a few months at best (but was over 6, mostly due to major issues with the original draft contract), finally publish a release edition of a product that had been in development for over two years prior, and three security fixes. That's not really all that much, so forgive me if I have little confidence in the project or the new corporation behind it. What I'm seeing mostly is talk about all the new features that would be nice and basically no team growth. All say, no do.

If the pattern holds, we might see 501(c)(3) status in 2014, if we're lucky.
Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


Angelina Belle

Yes, we are a slow board. We're all a bit new at this.

If you can post your relevent experience with form 1023 and the whole application process, I would ask the board to consider inviting you as a member of the NPO, waiving the membership fee in lieu of services provided to the organization.

Alternatively, if you could suggest an accountant or lawyer with relevant experience who might like to join or even consider a seat on the board, we'd be eternally grateful.

We appreciate every bit of help.
Never attribute to malice that which is adequately explained by stupidity. -- Hanlon's Razor

redone

Maybe you guys can reach out to others who have gone through the same process?

青山 素子

Quote from: AngelinaBelle on November 17, 2011, 04:11:11 PM
If you can post your relevent experience with form 1023 and the whole application process, I would ask the board to consider inviting you as a member of the NPO, waiving the membership fee in lieu of services provided to the organization.

Sorry, but I don't have that much experience in that area. Even if I did, I don't have much time to help in any material way. (Work is currently using up nearly all my time outside of meals and sleep.) I believe Thantos, who is back on the team, actually has some direct experience. Maybe you could ask him for some help.


Quote from: AngelinaBelle on November 17, 2011, 04:11:11 PM
Alternatively, if you could suggest an accountant or lawyer with relevant experience who might like to join or even consider a seat on the board, we'd be eternally grateful.

I can't think of any who would do this for free. You should have some money from the LLC transfer, why not hire a lawyer that has experience in this area? It would be a wise use of funds. I believe the lawyer used by the LLC in the transfer has some experience with corporate affairs including non-profit filing experience. Perhaps you could negotiate a special rate.


Quote from: AngelinaBelle on November 17, 2011, 04:11:11 PM
We appreciate every bit of help.

Good to hear, but if you need help in an area, you should advertise it and request assistance. Remaining silent on an issue that's slow-going just makes you ineffective and just removes transparency that was promised.
Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


Angelina Belle

Information about progress torward the 501c3 filing is available to members of Simple Machines.
It hadn't occurred to me that anyone else would care much.
Never attribute to malice that which is adequately explained by stupidity. -- Hanlon's Razor

Thantos

Quote from: 青山 素子 on November 20, 2011, 09:24:49 PM
Quote from: AngelinaBelle on November 17, 2011, 04:11:11 PM
If you can post your relevent experience with form 1023 and the whole application process, I would ask the board to consider inviting you as a member of the NPO, waiving the membership fee in lieu of services provided to the organization.

Sorry, but I don't have that much experience in that area. Even if I did, I don't have much time to help in any material way. (Work is currently using up nearly all my time outside of meals and sleep.) I believe Thantos, who is back on the team, actually has some direct experience. Maybe you could ask him for some help.

She did ask me.  Sadly, I am of little use at this point.  And to be clear:  I'm not on "the team" where "the team" referrers to the SMF related people.  I am a member of the SM Org and work (granted very little work) on site issues.

Thantos

AngelinaBelle has contacted the Software Freedom Law Center which has advised her of some issues with the IRS in regards to FOSS projects seeking 501(c)(3) status.  The Board is currently discussing the details of the issues, its impact, and possible choices.

青山 素子

So, it's been about four months since the last update on this topic. How's the process going?
Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


Thantos

The IRS is currently researching the issue of 501(c)(3) for OS projects under the scientific research condition.  The word on the net is that all apps are frozen or proceeding in a glacial pace (compared to the normal process).  So right now a lot of orgs are in a holding pattern.  One option is for us to get sponsorship under a currently exempted organization but that presents its own sets of challenges (and who knows if they'll maintain their exempt status after the IRS is done researching).

None of that should be taken as an official statement from Simple Machines.  Just relying some of the information I've gathered from here and around the net.

青山 素子

Motoko-chan
Director, Simple Machines

Note: Unless otherwise stated, my posts are not representative of any official position or opinion of Simple Machines.


Angelina Belle

Simple Machines has not made an "official" announcement about this because, well, it is a waiting game.
We are kind of hopeful, but we don't really know what to expect.

In the meantime, we have to pay our taxes every year, because if we don't, we could wind up with a big tax bill after a couple more years of waiting.
Never attribute to malice that which is adequately explained by stupidity. -- Hanlon's Razor

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