[17532] in APO-L
Re: APO Reserves
daemon@ATHENA.MIT.EDU (Derek Cashman)
Tue Nov 11 23:19:23 1997
Date: Tue, 11 Nov 1997 23:17:21 -0500
Reply-To: Derek Cashman <Dcashman@CONCENTRIC.NET>
From: Derek Cashman <Dcashman@CONCENTRIC.NET>
To: Multiple recipients of list APO-L <APO-L@VM.CC.PURDUE.EDU>
In-Reply-To: <2.2.32.19971111195123.007160fc@camail1.harvard.edu>
On Tue, 11 Nov 1997, Ellen Kranzer wrote:
> At 10:51 PM 11/7/97 -0500, you wrote:
> >Remember, as a 501(c)(3) tax exempt
> >organization we technically must maintain a zero balance in the checking
> >account
>
> This is a completely false statement, though it is a common enough
> misunderstanding of the way 501(c)(3) status works. 501(c)(3) organizations
> can have money in the bank, then can even increase the amount of money they
> have in the bank. What 501(c)3 status means is that the organizations money
> needs to be spent on the the purposes for which the organization was given
> the tax exemption and that surplus revenues need to go back into the
> organization not into the pockets of the people running it.
I just wanted to apologize if I scared anyone with my original post. Tax
laws can sometimes be confusing, and the way that I stated the tax laws
regarding 501(c)(3) organizations was quite misleading. Essentially, what
the law states is that we can make a profit, but we cannot put that profit
in our own hands (ie brothers running the organizations), it must all go
into the organization again.
So don't go out and empty your chapter's checking account, please!! :-)
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Derek Cashman (dcashman@concentric.net)
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