Re: (erielack) GP-35 #'s & Unansered (sic) Questions

[William Shultz <wshultz1_@_twcny.rr.com>]

All of the information, rules and regulations governing nonprofits are 
available on the IRS web site to view or download and there are many of 
them:

www.irs.gov

Regards,

Will Shultz

Rich Chapin wrote:

>Will et al.
>
>First, for list contents purposes:
>
>The new GP-35 road #'s are 2556 & 2561. This from Athearn, posted on another
>list.
>
>Now to the squabbling:
>
>I find it curious that this issue has, once again, raised its head as we
>enter the season of "good will towards to all", and intended to just
>observe. But, your latest has the following statement:
>
>"As I am certain you are aware, a nonprofit
>cannot give a premium of greater value than it costs to produce, in this
>case the printed matter you receive. You cannot subsidize the cost of
>that publication outside of what you take in for a regular membership."
>
>Where does this rule come from? and Who established this? If it's the IRS
>I'd appreciate a specific citation to a specific section of the tax code.
>
>Now, please understand I'm not being flip or trying to just break chops. In
>my professional (environmental engineering) there thousands of pages of
>regulations. I could go on for a LONG time discussing requests to adhere to
>"rules" that came solely from an individual when the actual regulation
>either doesn't exist or isn't applicable. If there is, in fact, government
>control at the level implied that would be most disconcerting.
>
>So, please let me know.
>
>Thanks, RICH CHAPIN
>ELHS #3129
>
>----- Original Message ----- 
>From: "William Shultz" <wshultz1_@_twcny.rr.com>
>To: "Janet & Randy Brown" <jananran_@_mymailstation.com>
>Cc: <erielack_@_lists.railfan.net>
>Sent: Saturday, December 04, 2004 8:53 AM
>Subject: Re: (erielack) Unansered Questions
>
>
>  
>
>>Randy,
>>
>>I must admit I find some of your replies rather curious, 2 and a half
>>months ago you where one of the people on this list speaking out the
>>loudest for compliance with the by-laws and having the financial
>>statement available.
>>
>>Why should anyone care what it costs to produce the Diamond? Because it
>>directly relates to dues. As I am certain you are aware, a nonprofit
>>cannot give a premium of greater value than it costs to produce, in this
>>case the printed matter you receive. You cannot subsidize the cost of
>>that publication outside of what you take in for a regular membership.
>>Even if every member were a sustaining or patron member, or donated a
>>million dollars, you cannot subsidize what a member receives for their
>>dues with that money unless you raise the amount of the dues that is not
>>tax deductible.
>>
>>So let's say you have XYZ publishing printing the magazine and it costs
>>$28.00 per year to produce. Then XYZ comes along and says that sorry,
>>but they have increased costs to pass on and now it is going to cost
>>$31.00 per year to produce, you have to increase dues to cover that
>>price increase and you have to reduce correspondingly the amount which
>>is tax deductible from the sustaining and patron memberships. Ask the
>>IRS about that if you doubt it. If you don't increase dues, you
>>jeopardize losing your tax exempt status.
>>
>>    
>>
>
>
>
>  
>

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