ANST - Land funds...
Oriana
oriana at pacbell.net
Tue Nov 18 09:32:22 PST 1997
Timothy A. McDaniel wrote:
> 2.1: It'd be used for only a small amount of the time. (Rent it out
> while we're not using it? I think a tax lawyer would have to look at
> that idea; I'm pretty sure there are limits on how a 501(c)3 org can
> make money.) If you want to cover rental costs, it may be more
> cost-effective to establish a trust fund.
The only limit (on how you make money) is that activities not central
to your purpose do not make up a 'substantial' (not necessarily
majority)
portion of time/effort/etc. (It is taxable, paid from the proceeds,
as is all business income unrelated to your purpose.) The IRS regs are
deliberately vague by using the word 'substantial' - penalties have been
levied for activities that involved less than 25% of time/resources/etc.
> aren't independant groups in an alliance, they're branches. If the
> corporate level were to go down or get into a financial crunch, the
> big expensive asset would be lost. In fact, if they got into a
The West set up a separate corporation to handle their land fund, which
would protect the money if such an event (financial crunch, lawsuits,
etc.)
were to occur.
> Donal wrote:
> > As soon as I win the lottery, I'm going to buy at least 500 acres,
> > build a castle on it, and let the SCA use it for events. :)
>
> OK, but I'm pretty sure the SCA insurance won't cover you if anything
> bad happens. I believe it covers only the Corp. itself, the
> directors, and non-SCA property owners what rent stuff to the SCA.
This was heatedly debated a while back on the rialto; I don't remember
the exact outcome. I *think* the non-SCA property owners part was shown
as not true. I *think* anyone renting to the SCA was covered (the
thread
went on so long, I quit following it).
Oriana
oriana at pacbell.net
============================================================================
Go to http://www.ansteorra.org/lists.html to perform mailing list tasks.
More information about the Ansteorra
mailing list