PLUG & Nonprofits Re: [PLUG] (no subject)

[multiple seriousity <msimons@slackware.com>]

> | I believe that someone once suggested that PLUG do a fund-raiser and donate
> | the money to a worthy cause of our choice, officially from PLUG, as a
> | non-profit.  I believe they said this would cause PLUG to officially be
> | recognized as a non profit organization.  But this hasn't happened.  PLUG
> | has been rather chaotic, as far as I can tell, since its inception.
> 
> what if i officially gave the hardware to PLUG, who then sold much of
> it to it's own user base and associates... all profits from the sales
> could be then donated in PLUG's name to a non-profit.  this could get
> you on your way to non-profit status yourself for future events and
> donations, etc.  anything that didn't sell, hell, i'd just let you
> keep.

This would only work if this was true, however this concept of becoming a
nonprofit has almost no basis in any fact that I am aware of.  To become a
nonprofit organization, one needs to register with the state (I'm told
it's actually easy to get nonprofit status with the state), however it
provides no charitable/deductible tax benefits.  Then, one needs to go
through a long process with the IRS.. not to mention following strict
management guidelines.. and even though one may be registered, donations
are not tax deductible until IRS grants the status.  

And just because one is an officially registered nonprofit organization
with the state or the IRS does not mean one is a nonprofit charitable
organization (i.e. not all donations to nonprofits are tax
deductible.) and even in the category of nonprofits that are tax
deductible, there are rules about donations. 

The only other way to get non-profit (tax deductible) status that I am
aware of without jumping through the loops is to work through a fiscal
sponsor that is already a non-profit, that is willing to take your project
under it's wing. 

As far as PLUG goes, considering the fact that we are not a registered
entity of any kind, do not even have any elected or official officials, or
anything like that, I don't see any of this happening.  While it could
benefit PLUG in some way, the work involved would be far greater than
probably the benefits, as we have been able to operate and exist as a
non-organization organization for a while, quite successfully, (thanks to
a number of generous benefactors) and it looks like we will be able to
continue to do so in the future. 

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