It's not just the action itself, it's the action as it relates to the organization. Here's the relevant part from the IRS:
1. For most organizations, an activity is an *unrelated business* (and subject to *unrelated business income* tax) if it meets three requirements: It is a trade or *business*, It is regularly carried on, and. It is not substantially related to furthering the exempt purpose of the organization. I suspect that we could argue that it is, in fact, related to furthering the exempt purpose of the organization, but there's a significant chance that the IRS wouldn't see it this way, and I don't see the need to risk it. But IANAL. We'll have one on retainer for these kinds of questions as we go through the formation, if that ends up happening. --Matt On Thu, Jul 31, 2014 at 9:40 PM, Doug Hughes <[email protected]> wrote: > On 7/31/2014 9:13 PM, Matt Simmons wrote: > >> >> It was decided after LOPSA-East of this year that PICC should shut down >> for reasons personal to PICC management. Since LOPSA local chapters >> aren't incorporated (or at least, these aren't), it's unrealistic to >> expect individual members of the community to assume a financial risk of >> tens of thousands of dollars to organize a conference, so when >> evaluating what could be done, the idea was raised to have LOPSA itself >> be responsible for its own conferences, entirely. Still, the financial >> risk is immense. LOPSA-East costs between $60,000 and $70,000 to put on, >> and that's double what LOPSA has in the bank. Not to mention that it's >> very likely to be considered "unrelated business income", and thus it >> could put LOPSA's 501c3 status in jeopardy. >> >> Very likely? I find that surprising. We have an existence proof of the > opposite by way of Usenix with its various conferences. Why do you think > this is very likely when Usenix has been running conferences to fund other > initiatives for many years? How, also, could it be considered unrelated > since it is part of the core charter of LOPSA to provide education of one > form or another? > > I don't dispute the financial risk at all, fwiw. > > > _______________________________________________ > Discuss mailing list > [email protected] > https://lists.lopsa.org/cgi-bin/mailman/listinfo/discuss > This list provided by the League of Professional System Administrators > http://lopsa.org/ >
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