Re: IRS-Articles of Incorporation Change

[Teddy Lancaster <Teddy@runningbear.com>]

Great idea, Teresa.  I, for one, have NO inkling of this kind of legal stuff.
I would like te feel informed before I vote.  Not a lack of trust, mind you,
just a need and RIGHT to know the facts and judge for myself.

Teddy


Teresa Van Hove wrote:

> Randy,
>
> I believe that the arguements against this proposition hinge on the
> point that we (the membership) are being asked to appove a change
> based just on the board's recommendataion.  Perhaps AERC could tap
> the technical expertise of folks who have volunteered it and put
> the articles of incorporation on the AERC web site along with the
> proposed changes and a form for comments (pro and con) about the issue?
>
> Teresa Van Hove
> # M17417
>
> >
> > K.S. Swigart and Teddy have presented some interesting arguments against
> > the IRS requirement that AERC add two paragraphs to our Article SECOND of
> > the Articles of Incorporation.  However,  it seems to be argument for the
> > sake of argument with no valid reasoning.  I still don't understand why
> > they are so adamantly against AERC RETAINING its 501 (c)(3) Federal Tax
> > Exempt Status, nor can I think of any beneficial reason that AERC would
> > want to lose its Tax Exempt Status.
> >
> > With that said, my final post on this subject is this:  AERC HAS BEEN A
> > 501(C)(3) FEDERAL TAX EXEMPT ORGANIZATION SINCE OCTOBER 1989.  To quote
> > from an IRS letter dated August 21, 1998:  "The exempt status for the
> > determination letter issued in OCTOBER 1989 continues to be in effect."
> > However,
> > during the recent examination of AERC by the IRS, it was determined that
> > our Articles no longer met the organizational test of section 501 (c)(3)
> > and "must therefore be amended."  to continue to meet the requirements of
> > 501(c)(3).
> >
> > So, to sum up my final statement on this subject, to retain our 501
> > (c)(3) Federal Tax Exempt status, we must add two paragraphs to our
> > Article SECOND.  This is an amendment to the Article and our Legal
> > Committee determined it needed approval from the membership.  The
> > membership of AERC is being asked to approve the IRS required additions.
> > I can find no valid reason to vote against the addition as the upside far
> > outweighs any possible downside.
> >
> >               VOTE YES ON AERC PROPOSAL 1.
> >
> > Randy Eiland
> >