Most Important of the Bylaws Changes

[renegade12@juno.com (Randy H Eiland)]

Kat brought up several points about our upcoming Bylaws Amendment vote,
some are better answered by others, but I can answer her questions on the
Amendment required by the IRS:

Kat wrote:

<<<kat
Orange County, Calif.

p.s. _I_ am actually more interested in Proposal 1, since I am being
asked
to vote on a by-law that will actually restrict the activities of the
AERC
in a way which I (and probably most of the membership) am totally
unaware.>>>>>
and  <<<<<Can somebody tell me if the AERC is currently a 501(c)(3)
organization or
if it is currently trying to become a 501(c)(3) organization?>>>>>

To quote from Internal Revenue Agent Ray Pilcher's letter to AERC, after
our IRS Audit towards the end of 1997, :

"During our recent examination of your organization for the period ending
November 30, 1995 it was determined that your organization documents do
not meet the organizational test of section 501(c)(3) of the Internal
Revenue Code and must therefore be amended................"

Article SECOND of your Articles of Incorporation must be amended to
include the following two paragraphs as (f) and (g),......."

and then the letter states exactly what Ramey has written on pg. 46 of
the October EN. except where Ramey denotes (1) and (2) the IRS letter
uses (a) and (b).

Subsequently, because no one could find, or perhaps we never received, a
follow up letter from the IRS as to what our actual status is, I
contacted the IRS and asked for a copy of our current Status.  On or
about August 21, of this year I received a letter from L. Barragan,- IRS
Disclosure Assistant, which states:

"Our records indicate that this organization was recognized to be exempt
from Federal income tax in OCTOBER 1989 as described in Internal Revenue
Code Section 501 (c)(3).  It is further classified as an organization
that is not a private foundation as defined in Section 509(a) of Code,
because it is an organization described in Section 509(a)(2).

The exempt status for the determination letter issued in OCTOBER 1989
continues to be in effect."

So, yes we are and have been a 501(c)(3) organization, but to continue to
be recognized as an exempt organization, the IRS requires the addition of
the two new paragraphs identified as (f) and (g).  

Again I state, THIS IS THE MOST IMPORTANT OF THE BYLAWS AMENDMENTS AND
MUST BE APPROVED FOR AERC TO CONTINUE TO BE EXEMPT FROM FEDERAL INCOME
TAX.

Randy Eiland 



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