Author Topic: November 15th Club Elections/ Voting Item  (Read 2416 times)

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kcfrisbee

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Re: November 15th Club Elections/ Voting Item
« Reply #15 on: November 06, 2014, 01:54:40 PM »
My thoughts on this by-law remain the same as when we updated the rule, my stance was a person making more than 51% of income should be allowed to be on the board, they have more to lose and generally try very hard to keep the ship afloat.  The hitch in this giddy-up is IF it hinders the KCFDC from receiving the 501c status.  Like Dick and Jack have written, the attorney said it would look better but is not absolutely necessary.  Who is the last person to speak with Grady?  Seems like everytime we (the KCFDC) walks down this path, about once per year, the 501c application rules have changed. 

Frankenstu

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Re: November 15th Club Elections/ Voting Item
« Reply #16 on: November 08, 2014, 09:40:31 AM »
When I read that this issue started in 2004 I was a bit shocked.  In all seriousness how close are we on this?  I know there are potentially huge befits to obtaining the designation but what are the repercussions should we get it then fail to meet it one year?  What are the penalties?  Is it worse that simply not having Tax Exempt status?  If it has been this hard to obtain it, how likely are we to maintain it?  Or is maintaining it easier than the initial designation?  Just don't want to set us up for a future fall.

kcfrisbee

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Re: November 15th Club Elections/ Voting Item
« Reply #17 on: November 10, 2014, 09:09:08 AM »
It is my understanding the 501 is harder to get then it is to retain. 

KB

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Re: November 15th Club Elections/ Voting Item
« Reply #18 on: November 10, 2014, 10:27:35 AM »
I say let them in because I don't think with our current approach we have a chance at being a charitable organization--501 c3. I think that in our case, it is not bad to have representation from individuals earning money from disc golf and in my very unprofessional analysis, having representation on the board from disc golf money makers won't rule us out of 501 c3 (though other aspects would) in any case. However, having the majority of the board made up of individuals working for, or representing corporate interests would be a problem for obtaining 501 c3 status. Maybe it is too complex, but a bylaw requiring new elections anytime the board membership is over xx % represented by individuals who the membership feels represent corporate interests could be a consideration to keep us compliant with IRS governance guidelines. This is only interesting if we have a shot at a 501 c3, which I don't believe we do unless we change some of our activities and bylaws (which I know nothing about so fire away).

However, I do think we have to be careful in the clubs involvement with the professional side of the sport if we want to maintain a tax free status at all. I would think that if club (charity) money for instance goes to the pocket, or directly benefits a professional player (particularly a club member playing in the Wide Open) it is no longer qualified for tax exempt status let alone 501 c3 status. I need to familiarize myself with the bylaws as maybe we explicitly disallow this in order to maintain our tax free status. I'm sure someone will comment and tell me, but the Wide Open, a for profit event for some KCFDC members and sports professionals is supported by the club, and to me that becomes a problem to any 501 c3 status. If that is the case and the membership wants to keep on in that direction stack up the Disc Golf Worlds, the DDs, and whoever else as they will invest more time, energy, and effort than most of the rest of us (not counting you Jack!).

Intersting (or not) IRS readings here:
http://www.irs.gov/irm/part7/irm_07-025-026.html - Sports Clubs
http://www.irs.gov/irm/part7/irm_07-025-007.html - Clubs
http://www.irs.gov/pub/irs-tege/governance_practices.pdf - Board Governance
« Last Edit: November 10, 2014, 10:34:11 AM by fatexpat »
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Old Pike Mike

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Re: November 15th Club Elections/ Voting Item
« Reply #19 on: November 14, 2014, 08:28:15 PM »
In the long run, the club should continue to pursue the 501c3 status and needs to guard against conflicts of interest and the potential appearance of improper self dealing.  Is there a conflicts of interest policy that has been approved?  If so, can we see it? 

   If conflicts are properly disclosed and managed, the club and the disc golf community is better off collaborating with those who have vested interests in the growth of the sport. As long as we have transparency and avoid self dealing to the detriment of the club, the amount of an individual's income derived from disc golf should have no bearing on whether they serve on the board.  The 51 percent threshold is arbitrary and is not near as important as transparency and abstaining from voting on any issue that would financially benefit a board member.    I haven't heard a solid rationale for retaining the 51 percent limit if conflicts with specific transactions are managed.   






dickthediscparker

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Re: November 15th Club Elections/ Voting Item
« Reply #20 on: November 15, 2014, 08:26:23 AM »
The crazy thing is, there is only 2 people in this town that this even applies to... and they work at the same place.
Dick Parker
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