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[DPRG] DPRG incorporation and 501(c)(3) non-profit status]

Subject: [DPRG] DPRG incorporation and 501(c)(3) non-profit status]
From: steve at ncc.com srainwater at ncc.com
Date: Sat Aug 9 18:32:01 CDT 2003

For those members who were not at the meeting today, here is a copy of 
the handout calling for votes on the group's non-profit status. Please 
DO NOT reply to this post on the mailing list either to ask questions or 
vote. Questions should be emailed to Bill Cole <wecole at ev1.net>, who 
will forward them to the other members of the committee. Votes should be 
emailed to Vicki Taylor <PapertigerVT at aol.com> or one of the other officers.

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As most members are aware, the DPRG needs to resolve the problem
of its legal status and tax liabilities. Several months ago the
Non-Profit Investigation Committee was formed to research this
issue and put together a plan of action to correct the problems.
The committee is now ready to present its findings and call for
a vote on its recommendations.

Why does the DPRG need to do this?

IRS rules state that all non-exempt membership organziations are
responsible for filing tax returns and paying taxes on income. This
presents a problem for the DPRG because the group has no legal
standing and can't file a tax return.

What needs to be done?

The group needs to complete three steps:
1. Adopt revised, non-profit compliant bylaws.
2. File Articles of Incorporation with State of Texas
3. Apply to the IRS for 501(c)(3) tax-exempt status

What are the other benefits of doing this?

Among the many benefits are:

1. Incorporating limits the liabilities of the officers and
members in lawsuits, debts, legal judgements and other
potential legal issues.

2. 501(c)(3) status gives the DPRG exemption from federal taxes.

3. 501(c)(3) status makes the DPRG eligible to receive
charitable grants from a variety of government and private
sources.

4. 501(c)(3) status allows individuals or companies who
make donations to deduct the amount of their donations
>from their tax returns.

How much will cost?

$175 - approximate one-time state and federal filing fees
$200 - approximate one-time CPA/Legal fees
(We are working on obtaining pro-bono legal and financial
advice, which would eliminate that $200 cost)

What will this change?

The DPRG membership should not see any changes (except for an
eventual increase in the availability of funds for various
projects if donations are solicited). Members will retain the
same powers and privileges they currently enjoy. The officers
of the club will be required to file a one page federal tax
return annually and an updated incorporation report with the
state every four years. The officers already maintain all
other records required by both the state and IRS.

What happens next?

Once the resolution to incorporate and file for tax-exempt status
is passed, a second vote will be called to adopt revised bylaws.
A draft copy of the revised bylaws proposed by the committee is
available on the DPRG website:

  http://www.dprg.org/history/501c3/

Once the revised bylaws have been adopted, the committee will make
the appropriate filings with the state and IRS.

Votes will be collected on the mailing list and in person at the
monthly meeting. Because of the importance of this project we ask
that all current DPRG members vote on this matter. Officers will
be tabulating votes and matching them against the current
membership list to verify that no one is left out.

VOTE:
The DPRG should proceed with the steps needed to achieve full
501(c)(3) tax-exempt status as a Texas non-profit organization.
YES[  ]   NO[  ]   ABSTAIN[  ]


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Non-Profit Investigation Committee members:

Bill Cole
John Drummond
R. Steven Rainwater
Vicki Taylor


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