Re: IRS - AERC Bylaw Change

[K S Swigart <katswig@deltanet.com>]

On Sun, 11 Oct 1998, Randy H Eiland wrote:

> You misquote me, I never said we would lose our tax exempt status, I said
> **The alternative could prove to be a large annual expense to AERC and we
> all know who is going to end up paying for any increased costs!!.***  As
> you know, I have raised in excess of $46,000.00 for AERC in Sponsorships
> and other benefits this past year.  I look forward to a continued effort
> to raise other additional funding for AERC in the future.  Every dollar
> AERC obtains in funding from outside sources is a huge savings to our
> membership.  Each dollar raised from Sponsors and donations reduces the
> prospect of a dues increase that come out of your pocket and mine. 
> Retaining our 501(c)(3) status has long term potential benefits for AERC
> in versatility of fund raising, and THAT BENEFITS THE MEMBERSHIP.

It would be an error to assume that "major corporations" and other
sponsors are willing to buy advertising only from 501(c)(3) corporations.
I can name a host of them that regulary buy advertising from NBC.

And any reputabe controllerr for a "major corporation" or any competent
acountant for just about any other company would have no difficulty in
justifying to the IRS that "sponsoring" awards for the AERC and all the
attendant publicity associated with doing do could reasonably deducted as
a legitimate advertising expense.

So, though the AERC may no longer be able to solicit tax-deductible
donations...it can still sell advertising.

And don't tell me that no major corporation does such a thing.  I have
been to countless local endurance rides who have garnered sponsorships for
their awards from a wide variety of companies...from the local tack shop
to Coors Beer. And I know for fact that at least SOME of these rides are
not 501(c)(3) organizations...can't speak for all of them, but I would be
surprised if any of them were.

The statement from the "guest" about no major coporation making
contributions to anything other than 501(c)(3) organizations is just so
much horse shit.

And I am not so jaded that I don't think that even individuals (who can't
expense their "promotional" expenses) would be unwilling to make donations
to the Convention Raffle/s, or buy raffle tickets if they couldn't write
it off their taxes.  I have made donations to this myself, AND bought
raffle tickets, but have never had my bookkeeping together enough to
actually get the expense down on the right tax form (and, yes, _I_ can
write it off as a business expense).  This doesn't keep me from making
contributions. 

Let's hear it, how many people actually DO deduct their contributions to
the AERC????

kat
Orange County, Calif.