On Jul 18, 2017, at 11:36 AM, Carol Bean <beanwo...@gmail.com> wrote:
> Thanks for bringing this up again, Eric. The first time around I pretty > much sat on the sidelines and watched. This time around, I'm waving my hand > vigorously for the incorporation option… > > But is there something I'm missing here? What, exactly, would the downside > of incorporation be? Do we need volunteers to commit to acting as officers > for a time? And what would that involve? In a word, the downside of incorporation is an increased level of formality, which is something not akin to our community. Allow me to elaborate. To incorporate we would first need to draft a set of bylaws. These bylaws would state the purpose of our community and well as outline how our community would be governed. Believe it or not, the statement of purpose would probably be very vague in order to not pin anything down too hard. Regarding governance, we would definitely need to elect officers (president, secretary, treasurer, etc.). Non-profit status would probably require a board, and to paraphrase a lawyer we asked, “The board could even consist of all people who are members of the community.” I believe this is very much in line with our values. The actual fees to incorporate are minimal, less than a few hundred dollars. It is only when one pays an expert (lawyer) to cross the T’s and dot the I’s that the expense may get into the thousand’s of dollars.† These are one time fees. To be a not for profit entity, additional paperwork needs to be submitted. Again, I believe such is “included” in the initial set up. There are then on going expenses, mostly in the form of payments to the government to maintain incorporation and not for profit status. And since an incorporated body is an entity, it pays taxes. So there are annual tax returns to file. To summarize, the downsides to incorporation include: * the articulation of bylaws * the paying of one time fees * the on going paperwork & fees to maintain incorporation * the regular election of officiers † I’m not sure, but I think our community has many thousands of dollars floating around somewhere, and I believe the money has gotten passed from one annual meeting sponsor to the next. — Eric Lease Morgan
