December 2006 – Discussion on IRS status
continues:
Chapter
Represenatives and BOD members checking in:
Betsy Delaney Rep, Silicon Web
Jan Price VP, ICG
Maggie Smith – DFWCG
Bruce R. MacDermott, ICG Treasurer
Jennifer Thompson – DFWCG
Kate McClure – Beyond Reality
Costumers Guild
Nora Mai – ICG Pres
Bruce Mai - Rep, SLCG
Janice Dallas - Northern Lights
Dawn McKechnie – Fibre Fantasy
Artists of
Dora Buck - Sick Pups
Karen Heim - Corr. Secretary
Susan Smith - Alternate Rep,
Treasurer- Northern Lights Chapter
Rob Himmelsbach - DVCG acting BoD
rep
Pierre Pettinger – Parliamentarian
Elaine Mami - Alternate rep, Sick
Pups
Diane Harris – SWCG
Valerie Roberts - Chicagoland
Costumer's Guild
Frances Burns - recording secetary
Alexandra Dysinski - Fibre Fantasy
Artists
Ann Hamilton - GCFCG
Poll question: Do
you/your chapter accept the UGI (a restating of our by-laws – passed with 9 yes
votes/ 0 no votes.
7 Chapter reps
responded to the poll. All 6 accepted
the UGI as it is currently written.
5 agreed to
participate in the gathering of the required materials for the IRS, 1 did not.
Next question
money:
Also: There seems
to be a strong opinion that dues will need to be raised but not until after the
IRS problem is resolved.
Poll started December 12 – Poll results January 3, 2007: Do you approve of spending the $900
for the IRS fee with the money coming from the ICG's resources augmented by
Chapter donations? – passed with 10
yes votes/ 0 no votes
We interrupt
this CoW to bring you a new chapter!!
Motion 12-06-01 that the Southeastern Chapter be accepted to
the ICG moved by Bruce MacDermott and seconded by Bruce
Mai (14 Dec 2006)
Do you approve Motion 12-06-01, admitting to the ICG as a
new chapter the Southeastern Costumers' Society, representing the southeastern
Voting started December 18 – Voting results January 3, 2007:
The new chapter is the Southeastern Costumers' Society, representing the
southeastern
Their nickname is "the SECS Fiends".
And Back to 501C3
discussion:
Do chapters (especially those that will be subordinates and not be filing for state exempt status) need their own EINs? While it appears that they might from what I'm reading, why wouldn't subordinate chapters depending upon the ICG's exempt status end up using the ICG's EIN which carries the exempt status with it?
Answer: Every chapter, technically speaking, is required to have an Federal Employer Identification Number (EIN) under which all income (over $500) would be reported to the IRS. If a chapter does not apply for an EIN, then its income is supposed to be reported on the Social Security Number of its Treasurer or President. If a chapter wishes to avoid the issues of obtaining an EIN and wants to be Exempt from Taxes, they can join in the "Group Exemption" and be covered by the ICG's EIN and tax-exempt status.
Chapters covered by the GEL and the ICG's EIN, will have to be consistently responsive to the financial reporting requirements for income and expenses, which will be reported by the ICG in its annual filing. At a minimum, Quarterly reports of all financial activities would be required. This should not a difficult requirement or a burden. The report need only indicate income from membership dues, income from other sources (donations, sales), expenses for member services, and expenses for non-member services. No detail is required, just the totals. For reporting purposes, these will be aggregated with those of the ICG and reported to the IRS on Form 990.