ANST - Land funds...

[Oriana]

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
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