See note at end...

Ben Scott wrote:
> On 8/22/07, Ed lawson <[EMAIL PROTECTED]> wrote:
>   
>> Actually, I believe I said 501(c)(3).
>>     
>
>   Ah.  Okay.  I know someone had said that 501(c)(3) is/had become
> harder to qualify for (i.e., limiting it to more traditional
> charities), and that 501(c)(6) might be more appropriate.  I had
> thought it was you, but I could easily be wrong on that -- it was a
> few years ago at this point.  Maybe it was maddog; maybe someone else.
>
>   
>> It is unclear to me how the members would constitute a collection
>> of entities or persons with a common business interest the promotion
>> of which is the main focus of GNHLUG.
>>     
>
>   Well, I thought I addressed that in my notes.  The short version is
> that "business interests" is fairly broadly defined, and that just
> "promoting Linux" seemed like it would qualify.  At least, that's my
> interpretation of information on the IRS website.
>
>   
>> Unless there is some reason to believe there will be lots of money
>> flowing through the coffers of GNHLUG, the whole exercise might be
>> academic anyway.
>>     
>
>   I rather suspect so, which is why I just went ahead and registered
> the EIN anyway, rather than bringing the question before the board
> first.
>
>   While I haven't looked too far into the filing requirements at this
> point, the general idea appears to be that one gets the EIN first, and
> then files for tax-exemption.  It appears an organization is allowed
> to never get that far, and to change things later.
>
>   My impression was that the filing requirements for a 501(c)(3) are
> significantly stricter than for a 501(c)(6).  The major payback being
> that donations to a 501(c)(3) can be tax deductible for the donator,
> which of course encourages donations.  Both types allow the
> organization to be exempt from paying taxes on donation income.
>
>   
>> Perhaps a check with other similar organizations to see if the have
>> applied for 501(c) recognition and if so what entity was chosen and why
>> would be productive.
>>     
>
>   Good idea.... anyone have any contacts with existing orgs they could
> pursue in that direction?  I suppose I could just crack the phone book
> and start calling org's at random, but that seems crude.
>
> -- Ben
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>   
Carole's company (Rivendell a.k.a. Learning Networks Foundation) is a
501(c)(3) and will act as a fiscal agent for similarly minded organizations.

One of the issues we discussed (during a summit meeting here) about
501(c) status is that a 501(c)(6) allows us to lobby the government (and
some of our activities re: open voting, DMCA, ... can be construed as
"lobbying" regardless of what we think). A 501(c)(3) organization cannot
do any lobbying.

And you are right. The process for becoming a 501(c)(3) is a lot harder
than to be a 501(c)(6).

--Bruce
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