Chapter non profit status

[KRAKER]

Sean Yeager will be spearheading this project. I have done a little bit of homework.

According to this link. http://www.hurwitassociates.com/l_s_initial_az.php

The chapter needs to

1. Nonprofit organizations are automatically exempt from corporate income taxes in Arizona and need only submit a copy of their IRS Determination letter to:
   Arizona Department of Revenue
   Corporate Income Tax Audit
   1600 W. Monroe
   Phoenix , Arizona 85007-2650 Information: (602) 255-2060 Web Site: www.revenue.state.az.us/
   [*]To Obtain Arizona Transacton Privilege Tax Exemption
   
   Nonprofit organizations are not exempt from the transaction privilege tax when making purchases. However, in some cases, when purchasing goods for re-sale, said items may be purchased free of taxes. In general 501(c)(3) nonprofit organizations are exempt from the transaction privilege tax when selling tangible personal property. Please contact the Arizona Department of Revenue with specific questions.
   Taxpayer Information and Assistance
   PO Box 29086
   Phoenix, AZ 85038-9086 Information: (602) 255-2060 Web Site: www.revenue.state.az.us/
   [*]To Register with the Arizona Secretary of State
   
   Every charitable organization intending to solicit funds in Arizona or to have funds solicited on its behalf must register with the Secretary of State before any solicitation. To do so, submit the Charitable Organization Registration Form along with a copy of the organization's IRS 501(c)(3) determination letter (or a letter of intent to file for tax-exempt status with the IRS) to:
   Secretary of State
   Charities Division
   1700 W. Washington, 7 th Fl.
   Phoenix, AZ 85007 Information: (602) 542-6187 Fax: (602) 542-7386
   Web Site: www.azsos.gov/
   Filing Fee: $0

I don't think we need the privelidge sales tax license. I don't forsee us buying anything for resale. This needs this done so we can 1. Be legal 2. Hopefully use cdhowell's 50/50 raffle idea.

Sean, This is sensitive and needs to be taken care of asap. I will give you one month from today 3.18.2011 for a status report. Due 4.18.2011. If there is no status report here in this thread. By 12:00pm 4.18.2011, I will start the recall process on your position.

I'm here to help and assist if you need any help or guidance. I understand the third task may have some issues to deal with. There are several ways to get a hold of me. Here, Facebook, Telephone/text. All of which you have access to. If I do not respond from one try another and so on until I reply.

 

[KRAKER]

Sean I sent you a text to let you know. I will also send a pm. I would email you of I had one for you.

 

[YEAGS]

Im already on it. You don't need to keep mentioning the fact that if I dont do something ill be let go per say. It will get done.

 

[KRAKER]

Thanks Sean.

 

[KRAKER]

I just fnished speaking with a very trusted friend of mine. I was convinced we should get out sales prvilidge tax license (something like that). If we have that license we can get accounts with companys like Shamrock, US foods, and restaurant depot. Benefits being great savings on food for our events. So we can charge less for higher quality dinners. I'm not sure on the details as afar as cost of membership or requirements to buy. But, I saw their prices v. store brands prices. For example what it would cost to make burgers (not cheeseburgers) for a group at grocery store prices. We can serve restaurant grade T-bone steaks with all the trimings with just about any side dish you can think of for the price of the burger alone.

Definitely food for thought. Will someone take the reigns here? If no response to take the lead by 4/1/2011. I will assume responsibility.

 

[KRAKER]

Sean! WE NEED TO TALK ASAP!!! The deeper I dig the more goodies I find. We NEEd to get together ASAP!

 

[KRAKER]

OK guys I have all paperwork filled except for what I need from James and Tyler.


James I will see you either tonight or tomorrow. Tyler I will see you this weekend. So, Monday I can mail in all of our different applications. I'm going to downtown Phoenix after this post to get our Sale Tax Exemption Privelidge License (sales license).

If all goes well we'll be square legal in about a months time. So we will be able to get the different accouts setup.

 

[POSJ]

F'in awesome work man...

 

[KRAKER]

Tyler, I forgot the all the paperwork with you. You want to file it all for us? If so call me before you do so, there was a couple areas I wasn't sure on how to fill out.

 

[KRAKER]

bump?

 

[POSJ]

My bad john I've been busy as hell as well as a pos ...ill get on this tomorrow

 

[KRAKER]

No sweat... We all have a life.

 

[KRAKER]

Aaron have you made any progress on this?

 

[akelts]

Afraid not....will try to look into it this weekend.

 

[akelts]

Bringing this back to the top.

Just wondering if we could use a copy of the clubs IRS determination letter (IRS 501(c)(3)) to file with the secretary of state and department of revenue?

Sounds like we almost had it all worked out at the end of March....any tips/tricks/lessons learned from that go round that might make it go smoother now?

Aaron

 

[KRAKER]

I really don't remember anything I'd have to start over again if I tried.

 

[akelts]

Last week I began looking into this in earnest.
As I understand, STEP ONE is filing “Articles of Incorporation” with the Arizona Corporation Commission and there is a $40 filing fee. Within 60 days of the Articles of incorporation being approved we will then have to publish a copy of them in a newspaper of general circulation within the county of the known place of business for three consecutive publications. Within 90 days of approval of the Articles of Incorporation we must then file an Affidavit of Publication with the Corporation Commission.
I printed off a form letter as a guide for the Articles of Incorporation and moved on to STEP TWO:
Obtaining 501(c) (3) Tax-Exempt Status. Once we get this form we can move to STEP THREE: Submitting a copy of the IRS Determination letter to the Arizona Department of Revenue. Here is where I am hitting a wall. I was hoping that we could use a copy of the Clubs Determination Letter (since it costs $400 to file for one) but was not sure if this was acceptable. So I called the Arizona Dept. of Revenue on my lunch break, where I was promptly told it would be over one hour before I could talk to a real person. I held the line for 30 minutes (the length of my lunch break) before hanging up. While I was on hold I sent a letter to lobsterdmb asking if he could send a copy of the IRS determination letter. His response is below:
“A couple quick things. First, is not a 501(c)3. We are a 501(c) 7 non-profit which is the designation for social clubs. I can provide you a copy of our designation letter via email if you give me an address to send it to. The chapter would not be able to file for a designation individually because you fall under our tax id number since we are the incorporated organization. Only concern I have is that the club is incorporated in the state of Illinois, which might be problematic for you. As far as I know, all of the other chapters just pay their local sales taxes when they have events due to a variety of reasons (most chapters encompass more than one state so they would need to obtain it in every state, too complicated, etc.). Feel free to give me a call if you have any questions or problems.”
After going through this exercise I feel that obtaining non-profit status here in AZ may not be worth the effort for several reasons:
1.) For the amount of money that our chapter spends on goods and services, our savings on taxes will be largely (if not completely) negated by the $40 filing fee and cost to run a copy of our Articles of Incorporation in a newspaper for three days.
2.) Potential confusion/problems arising from trying to incorporate a local chapter of a club that is already incorporated in another state.
3.) If somehow we do file successfully, we are putting ourselves on the bureaucrat’s radar; asking to be scrutinized and deal with more red tape in the future.
Sorry for the manifesto guys. If you still think this is a worthwhile pursuit, I will still pursue it, but as in most dealings with government organizations I think it will take a while to get some straight answers and the process will not be a simple one.

 

[KRAKER]

Hold off for a second on continuing. I'll let national know about this and have them contact lawyers regarding this.

 

[KRAKER]

Just got off the phone with a lawyer. I think I have found a way to avoid filing the chapter with the state and making 50/50 raffles legal for us a whole lot sooner.

 

[akelts]

Just got off the phone with a lawyer. I think I have found a way to avoid filing the chapter with the state and making 50/50 raffles legal for us a whole lot sooner.

That would be awesome. Thanks for looking into this John. I am way better at looking at rocks than I am interpreting legal-speak.