[Lswtalk] Meeting with Accountant...

[Loretta Gharst]

Great news - all good!
Thanks!

Loretta  Gharst


-----Original Message-----
From: lswtalk-bounces at beau.org [mailto:lswtalk-bounces at beau.org] On Behalf Of Jessica Hutchings
Sent: Thursday, July 10, 2014 12:03 PM
To: lswtalk
Subject: [Lswtalk] Meeting with Accountant...

Hi everyone, 

The meeting with the accountant this morning went well. I do not think I can accurately convey all he said through an email, but I will give you the gist of it here and details at next month's meeting. 

*Just because our bylaws say that we are 501c3 does not mean that we need to file for that federal status. He recommends that we not change the bylaws.

*Filing for 501c3 is complicated, and there is a fee. He advises that we not apply for federal tax exempt status. We're too small. 
 
*The dues that everyone pays are capital contributions, which are not taxable.

*Fundraising income is taxable. Our Author Dinner could be considered fundraising, but minus its expenses, we're not raising much taxable income. 

*We should just be a regular organization, but keep the non-profit language in the bylaws so that our intent is always clear. We're not the only organization with this situation. It happens a lot, apparently. 

*Scholarship checks written directly to colleges/universities are considered donations. We can do this with no fear. We cannot write checks to individual scholarship recipients because this could be considered income to them. 

He was great. An hour's worth of advice for no charge. He has a beautiful view of the lake from his office in the Chase building. 

Happy Thursday, y'all. 

Jess

-- 
Jessica Hutchings 
Assistant Professor/Head of Reference 
Frazar Memorial Library 
McNeese State University 

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