Re: OT: 501(c)3 certification for Oracle user groups
Date: Tue, 30 Jun 2015 09:38:12 -0500
Message-ID: <CALrB5prfKCwk7KnnCbLyXYV5YWULNBWM8fT=z1d4+j5O2MWk0A_at_mail.gmail.com>
Congratulations! I know other user groups might be interested in this option and sharing the process is appreciated.
Alfredo
On Tue, Jun 30, 2015 at 9:06 AM, Iggy Fernandez <iggy_fernandez_at_hotmail.com> wrote:
> NoCOUG applied only once and was successful on the first attempt. I
> believe that the key was the restatement of our articles and bylaws (upon
> the advice of the CPA who handled our case) using a model template for
> 501c3 organizations. For good measure, our mission statement mentioned that
> we do indeed give our members opportunities to hear viewpoints other than
> those handed down from 400 Oracle Parkway.
>
> I will share our application and documents with Mark and Tim and with
> anybody else who may be interested (send me an offline email).
>
> Iggy
>
> ------------------------------
> From: mwf_at_rsiz.com
> To: tim_at_evdbt.com; oracle-l_at_freelists.org
> Subject: RE: OT: 501(c)3 certification for Oracle user groups
> Date: Tue, 30 Jun 2015 00:44:29 -0400
>
>
> Congratulations to both RMOUG and NoCOUG on achieving 501(c) 3 status.
>
>
>
> Between 1988 (eotopica99.pdf) and an update in 1996 changes in IRS policy
> changed a lot. We probably do need to update our document from “will
> probably be denied” to something more hopeful and cite the experiences of
> both RMOUG and NoCOUG.
>
>
>
> In 1990 when I help found the OAUG both Bechtel’s general council and
> several tax issue oriented law firms were consulted and the universal
> opinion at that time was that due to the Prime computer users group and
> Guide users group court rulings we had zero chance of success in gaining
> tax exempt status (tax exempt as distinct from not for profit). The IOUG
> received similar advice, circa 1993, if memory serves.
>
>
>
> The rulings and advice from law firms were not myths. Three filings and a
> four year perseverance required by RMOUG underscore the very real
> difficulties even as late as 2003.
>
>
>
> Tax exempt status is a desirable outcome and I know richly deserved by
> RMOUG, for example, not least because of their contributions to high school
> education.
>
>
>
> Once a local, regional, or sig users group achieves critical mass for the
> undertaking it is well worth considering. If RMOUG and NoCOUG can share
> what they regard as key positives of their applications from the IRS
> viewpoint, that would be great. The prevailing attitude at the IRS has
> clearly evolved from what it was in the wake of the Guide and Prime rulings.
>
>
>
> Again, congratulations!
>
>
>
> mwf
>
>
>
>
>
> *From:* oracle-l-bounce_at_freelists.org [mailto:
> oracle-l-bounce_at_freelists.org] *On Behalf Of *Tim Gorman
> *Sent:* Monday, June 29, 2015 9:02 PM
> *To:* oracle-l_at_freelists.org
> *Subject:* Re: OT: 501(c)3 certification for Oracle user groups
>
>
>
> RMOUG initiated efforts to obtain 501(c)3 status in late 2003, submitted
> three times, and achieved the status in late 2007. RMOUG was also
> incorporated in 1996 as a 501(c)6, but I don't believe the 501(c)3 status
> was backdated. So in that respect, NoCOUG is an official tax-exempt
> charitable non-profit since well before RMOUG. :-)
>
> Congratulations!
>
>
> On 6/29/15 17:39, Iggy Fernandez wrote:
>
> Following the trailblazing path set by RMOUG, NoCOUG has received 501(c)3
> exemption from the IRS. The effectivity date was the date of NoCOUG
> incorporation in 1996. This busts the myth that Oracle user groups are not
> eligible for 501(c)3 exemption.
>
>
>
> http://collaborate13.ioug.org/d/do/2266
>
> The IRS’s concern is that a computer user group supporting only part of an
> industry provides
>
> some members of the industry with an advantage over others not supported
> by the group. The
>
> IRS will look at the group’s primary purposes, activities, and membership
> to determine whether
>
> the group benefits the entire industry or only a segment or a sole
> brand/manufacturer. Simply by
>
> having a nametag like “Oracle User Group” will send red flags to the IRS
> that your group is
>
> primarily supporting one brand or manufacturer (i.e. Oracle Corporation).
> If your user group can
>
> make a case that it supports the entire software industry then you may be
> able to obtain tax
>
> exemption under the 501(c) (6) rule. To obtain tax-exempt status under
> Section 501(c) (3), a
>
> group must be organized exclusively for one or more of the following
> reasons (among others):
>
> charitable, religious, educational, scientific, or literary. Computer user
> groups normally do not
>
> qualify under Section 501(c) (3) because their purposes and activities
> rarely are exclusively
>
> charitable or educational, etc. Although your main activity may be
> education, if it is organized to
>
> help users of a certain brand or manufacturer, rather than the public as a
> whole, tax exemption
>
> will probably be denied.
>
>
>
> Iggy
>
>
>
-- http://www.freelists.org/webpage/oracle-lReceived on Tue Jun 30 2015 - 16:38:12 CEST