Check it Out!    
RideCamp@endurance.net
[Date Prev] [Date Next] [Thread Prev] [Thread Next]
[Date Index] [Thread Index] [Author Index] [Subject Index]

AERC VOTE!!!!!



Kat wrote a very, very long dissertation  on the following:

<<<<Date: Mon, 2 Nov 1998 23:09:35 -0800 (PST)
From: K S Swigart <katydid@deltanet.com>
To: Endurance List <ridecamp@endurance.net>
Subject: The AERC, the IRS, and the Articles of Incorporation>>>>

I am going to assume that Kat is neither an Attorney nor a CPA .  I am
attaching copies of two letters I previously posted, from our Legal
Committee and our CPA, both stated the necessity of approving the IRS
required amendments.

from Rich Maxwell, Chair of the AERC Legal Committee:

This year the AERC was audited by the Internal Revenue Service. As a part
of that audit the IRS reviewed the Articles of Incorporation of the AERC
to
insure that they complied with the requirements of Internal Revenue Code
Section 501(c)(3) which is for charitable organizations. The AERC had
converted to a 501(c)(3) corporation some years ago. One of the benefits
of
being a 501(c)(3) corporation is that contributions are tax deductible.

The IRS noted that AERC’s Articles of Incorporation did not contain
specific
language with regard to 501(c)(3) and required that the Articles of
Incorporation be changed to add that language. This change can be
characterized as a “housekeeping” item. While it needs to be done to
avoid
losing our 501(c)(3) status, it does not in anyway alter the current
operation of the AERC.

Unfortunately, changing the AERC’s Articles of Incorporation is not
something that can be done administratively. Ramey Penticolas-Stroud
investigated whether the State of California would permit the AERC to
amend
its Articles of Incorporation by action of the Board of Directors rather
than having to spend AERC funds for a mailing to the members. However, we
were not able to fit into any exception. Fortunately, Ramey got the IRS
to
agree that we did not have to make the changes until the annual meeting
so
we avoided the expense of a separate mailing.

While this is a “housekeeping” matter, it is important that you cast your
in
favor of the changes to the Articles of Incorporation so that we
can be in compliance with the Internal Revenue Code. PLEASE CHECK YES ON
YOUR BALLOT AND PROMPTLY RETURN IT TO THE AERC.
******
From Omar Bardales, CPA representing the AERC:

In order to address the concerns regarding the upcoming amendment votes
by the membership let me try to clarify some issues.

1) American Endurance Ride Conference, Inc. is a tax-exempt organization
under Internal Revenue Code section 501(c)(3) and has been since
December 7, 1988.

2) The completed IRS audit of AERC for fiscal year end November 30,
1995's closing letter stated that AERC continued to qualify as a
tax-exempt organization under the previously mentioned code section.

3) The changes requested by the IRS are adjustments to the Articles of
Incorporation not the By-Laws.  The corporate By-Laws are an internal
governing and operating document.

4) The Articles of Incorporation were originally submitted to the
California Secretary of State on  April 11, 1972.  Over the last 26
years the state of California and the IRS have refined their required
language that needs to be included in the Articles of  Incorporation of
all tax-exempt organizations.

5) The IRS is just exercising their muscles by requiring AERC to amend
the Articles of Incorporation in order to conform to current language
being used for all tax-exempt organizations under Code section
501(c)(3).

6) As I understand the organization, AERC's programs and functions have
always fallen within the parameters of its tax-exempt status and the
change to the Articles of  Incorporation should not affecting the
functioning of AERC one bit.

7) There are no advantages or disadvantages to the changes being
requested by the IRS other than their potential threat of terminating
AERC's tax-exempt status if the requested changes to the Articles of
Incorporation are not made.  I would not take this request by the IRS
personally.

Mr. Eiland, I hope this helps you in explaining the changes requested by
the IRS to AERC's membership.  If  I can be of  further assistance to
you or should you have any additional questions or concerns please feel
free to e-mail me or call.

Best Regards,

Omar.

So, two professionals, both representing the Best Interests of AERC, tell
us that we need to approve the IRS required amendments to our Articles.
As an aside, and just as importantly, please cast your vote for Director
at Large. too.

Randy Eiland
 





___________________________________________________________________
You don't need to buy Internet access to use free Internet e-mail.
Get completely free e-mail from Juno at http://www.juno.com/getjuno.html
or call Juno at (800) 654-JUNO [654-5866]



    Check it Out!    

Home Events Groups Rider Directory Market RideCamp Stuff

Back to TOC