Re: IRS - AERC Bylaw Change

[Teddy Lancaster <Teddy@runningbear.com>]

A deduction can be made as an advertising or promotional expense and it has
NOTHING to do with an tax-exempt status.  How else can Budweiser write off
major TV ads?  For sure, NO TV station runs under tax-exempt status.

Teddy (who donates to PLENTY of rides and writes them all off as advertising)

K S Swigart wrote:

> 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.