[crw-talk] CRW By-Laws circa 2018, Now By-LAWS 2017 as sent to the IRS to pursue non-profit status and Follow Up. And some visioning!

Thu Oct 19 00:16:36 CDT 2023

I cannot answer your questions with great specificity, Bob. However, I will do my best.

There are definite benefits to having the club designated as a non-profit or 501 (c)(3) organization.  Some I’ve illustrated previously, and probably many others yet to be explored.   The tax break to individuals for donating items are probably minimal as tax laws have changed over time.  For club purchases, paying no taxes would be minimal benefit. Historically, the club does make significant purchases of large ticket items or take in receipts of large sums, way under the $50,000 IRS threshold. I don’t know in what category annual dues are pigeonholed.

Please know for example that entering some community wide venues are only open to non-profits with no entry fee. If a non-profit club desires entry, there may be fees. Also, some venues may only invite non-profit organizations.

IMHO, the potential for writing grant applications to grant offering organizations that have resources for non-profits only, is significant and may result in positive results.  For example, there has been some interest in improving the AV system to a digital format; cameras, sound, switcher, replacement monitors and such down the road.   Grant monies would be helpful for this endeavor. This is not currently a priority. 

I believe when applying for grants, a non-profit status as well as community engagement activities, such as the club’s ongoing wig stand project, turning with kids, demonstrations at community wide events are looked at favorably.  Many granting organizations only take applications from non-profits.  Also, there are, I believe community events that only showcase non-profit organizations. BTW, I just learned today there is a national wig stand project. Maybe in the same vein as the Beads of Courage and Empty Bowls projects as many clubs do.

Many, if not most turning clubs are designated as non-profit. Check out at random 10 turning clubs, I think you’ll find this true.

Also, seeking a 501 c 3 status is good for the long haul if the club members vision club growth over time. Many doors will be open. Recall that a one time in the recent past, our club around 100+/- members.

The maintenance of the 501 c 3 status once granted by the IRS has minimal requirements; requires an annual e-Postcard form submitted to the IRS. This is very doable; in most clubs, the president or treasurer does this annual task. I don’t believe there is a cost associated with the process, but could be wrong. 

At the risk of boring the readers, I include this excerpt from the IRS website.  “Most small tax-exempt organizations that have an annual reporting requirement can satisfy the requirements by submitting Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ. Form 990-N is submitted electronically, there are no paper forms.

An organization eligible to submit Form 990-N can instead choose to file Form 990 or Form 990-EZ to satisfy its annual reporting requirement.

Small tax-exempt organizations generally are eligible to file Form 990-N to satisfy their annual reporting requirement if their annual gross receipts are normally $50,000 or less.”

Annual Electronic Filing Requirement for Small Exempt Organizations — Form 990-N (e-Postcard) | Internal Revenue Service (irs.gov) <https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard> 

The above would apply to the Coulee Region Woodturners.

I am not in disagreement with Aaron on the source of money to fund 501 c3 reinstatement,  but some may find using club treasury funds as not worth the less than $300 debit. That is why I have joined Adrian in his funding proposal if the club chooses that route. The membership can make that determination. 

By-Laws revision and resolving the non-profit reinstatement quest is not a board decision, it’s a general club member decision.  Each one of us with a paid up membership has equal voting power and the right to bring up the 501 c3 reinstatement concern  or other in an open meeting.

I have no doubt there are current club members who are familiar and have experience with grants and grant writing. I have not personally written grants but have participated in supplying detailed information as requested by grant writers in a professional setting.  Additionally, I have participated in the process to maintain the grant parameters once received, in some cases writing summary statements as required, depending on the grant. I suspect any grant sought by the club would not require that kind of oversight. 

On a tangent and potential grant topic that includes WIT.  There currently are several women members in our local club. The AAW has a wonderful and growing WIT (Women in Turning) group. Overall, around 9-10% of turners are women and growing, but still greatly underrepresented. I believe women have a slightly different approach to design, technique and do wonderful creative work; think of Drozda, Scarpino, Dill, the Tiny Turner from the UK and many others.  The latest American Woodturner, October 2023, showcases women in turning. There is a rich history of women in turning wood, going way back. 

Wouldn’t be great for our club to have a local WIT group for those women interested in joining. There are AAW grants available that affiliate clubs can apply for, for WIT development within their clubs.  Our club could benefit from this as a real opportunity for CRW membership growth. 

Speaking of face-to-face discussions, I agree there is a need for member engagement on pertinent topics pertaining to maintaining a turning club in the face-to-face method.  We all understand that “zoom” is a poor vehicle to conduct business for a volunteer operated type social or craft/artistic club. Our monthly club meetings are not ideal for in-depth group discussions.  I’ve heard from some, “we come to meetings to see demos and socialize”. That’s true, but some mechanism is needed for in depth exploration if the CRW desires growth.  In my view, most of the zoom board meetings I’ve attended are not particularly productive and engaging. This tends to be true for many organizations, not just our club.   

 Sincerely,   -raasch

From: crw-talk <crw-talk-bounces at crwoodturner.com> On Behalf Of Robert Patros
Sent: Wednesday, October 18, 2023 10:36 AM
To: Aaron Gesicki <aaronagesicki at gmail.com>
Cc: Bobraasch2 <bobraasch2 at gmail.com>; Membership mailing list for the AAW Chapter Coulee Region Woodturners. <crw-talk at crwoodturner.com>
Subject: Re: [crw-talk] CRW By-Laws circa 2018, Now By-LAWS 2017 as sent to the IRS to pursue non-profit status and Follow Up. And some visioning!

Here’s my two cents:

-I am not necessarily against reinstating. However, I would like to know that, after paying to do so, are there subsequent fees to stay active? And, is reinstating a membership vote or a board decision. 

-I’m not completely sure how this benefits the club and individual members. And, others might feel the same. This may have been discussed early on. I just don’t remember. I would appreciate some practical examples and believe it’s important to show the benefits now and in the future. 

-If the decision is made to  reinstate, I believe we need one or two members who know about such things as grants and other benefits to oversee the process with the board making final decisions. 

-And,  I agree with Aaron. If a decision is made to reinstate it should come out of the general fund. 

-For me, it’s difficult to do this by email when a face to face discussion would be best. I’ll leave it to the board to decide the process. 

All for now,

Bob Patros

Sent from my iPhone

On Oct 18, 2023, at 10:05 AM, Aaron Gesicki <aaronagesicki at gmail.com <mailto:aaronagesicki at gmail.com> > wrote:

My opinion – 

Yes, reinstatement is worthwhile. 

NO to any special assessment. We have $3K+ bank balance. This gets paid from that general fund. 

Aaron Gesicki

From: Adrian Novak <adrian.novak at charter.net <mailto:adrian.novak at charter.net> > 
Sent: Tuesday, October 17, 2023 8:27 PM
To: Membership mailing list for the AAW Chapter Coulee Region Woodturners. <crw-talk at crwoodturner.com <mailto:crw-talk at crwoodturner.com> >
Cc: Aaron Gesicki <aaronagesicki at gmail.com <mailto:aaronagesicki at gmail.com> >; Bobraasch2 <bobraasch2 at gmail.com <mailto:bobraasch2 at gmail.com> >
Subject: Re: [crw-talk] CRW By-Laws circa 2018, Now By-LAWS 2017 as sent to the IRS to pursue non-profit status and Follow Up. And some visioning!

If the $275 is a problem I will make a 10% contribution. If 9 others match this amount. 

Adrian 

On Oct 17, 2023 at 8:08 PM, <Raaschb <mailto:raaschb at charter.net> > wrote:

Dear members,

Follow up on B-L’s and pursuance of 501 (c) (3) status.  Aaron opened the door in his recent newsletter, I just walked in and wrote yesterday’s piece.  

I’ve been informed by our club’s  previous president, Adrian,  there may be a process for reinstatement; some paperwork and a possible outlay of  about $275 required. Good news right?

I have included some detail here as the process may be less intimidating than our wild imaginations may think. Should the club decide reinstatement is positive for club growth, bringing forth opportunities for grants, etc., some work has already been done here, well ya now know where to start the process.   Kinda like the tree has been cut down, hauled to your shop, snow brushed off (yup that season justa round the corner), the bowl blanks prepared for your creative endeavor, right? I know it’s a stretch, but ya get my point!?

Some quick research on the IRS website, under form 2022-1 has a document titled Automatic Revocation – How to Have your Tax-Exempt Status Reinstated. I’m not a tax lawyer, no surprise here,  and don’t even play one on TV, but it would appear that since the club’s tax-exempt status was automatically terminated more than 15 months ago for the reasons outline in my previous note, AND the club’s non-exempt status was not previously automatically terminated, the club may submit Form 2023 and  others, plus submission of $275, from the club’s treasury to Department of the Treasury, IRS, Ogden, UT. I’m sure the process is not quick and probably some hurry up and wait; we know govt wheels spin SLOWLY. 

Sure there’s a wee bit more, but, would be worth the effort if the collective membership view a tax exempt status as desirable.  Some helpful links for those interested: 

Form 2022-1  <https://www.irs.gov/irb/2022-01_IRB#REV-PROC-2022-1> Internal Revenue Bulletin: 2022-01 | Internal Revenue Service (irs.gov).   AND 

 <https://www.irs.gov/charities-non-profits/charitable-organizations/automatic-revocation-how-to-have-your-tax-exempt-status-reinstated> Automatic Revocation - How to Have Your Tax-Exempt Status Reinstated | Internal Revenue Service (irs.gov)   .  

The actual procedure, outlined in Revenue Procedure 2014-11 explains the 4 procedures an organization may use to apply for reinstatement. 

A small committee of 2-3 can work thru this, I volunteer to join that group if formed.  

Thanks, Adrian, for forwarding this IRS information. 

The following article by AAW executive officer, Jennifer Newburg may speak to you, as it did to me this morning while reading at the coffee shop. While the article specifically addresses the AAW, we can imagine substituting the CRW for the AAW.  

If you’re an AAW member, this can be found in the American Woodturner, October 2023 issue.  IMHO  this message may speak to us, the collective CRW membership, as we look hopefully to 2024 as a chance to get back to our roots, but now move forward.  I’m convinced or at least hopeful; new leadership will lead the way, be engaged, be open, inclusive, listen to the voices, then act in an appropriate and responsible manner to  launch us forward.    

Regards,

CRW member Bob Raasch

<image001.png>

From: raaschb at charter.net <mailto:raaschb at charter.net>  <raaschb at charter.net <mailto:raaschb at charter.net> > 
Sent: Monday, October 16, 2023 11:15 PM
To: 'Aaron Gesicki' <aaronagesicki at gmail.com <mailto:aaronagesicki at gmail.com> >; CRW-Talk at crwoodturner.com <mailto:CRW-Talk at crwoodturner.com> 
Cc: raaschb at charter.net <mailto:raaschb at charter.net> ; bobraasch2 at gmail.com <mailto:bobraasch2 at gmail.com> 
Subject: RE: CRW By-Laws circa 2018, Now By-LAWS 2017 as sent to the IRS to pursue non-profit status

Dear fellow members, 

I am including important information pertaining to the topic, hoping some will read, reflect and possibly take notice. 

The substance of the official IRS correspondence to the club regarding non-profit status, is in the bottom half of this document. The By-Laws reflect parameters required for 501 c 3 status.

The Coulee Region Woodturning club leadership was apprised of the IRS requirements to maintain non-profit status many times over the course of the past year, WELL prior to the 3 year limit of failing to file the appropriate documentation.  Further, I’ve been assured that the IRS understands the problems that COVID has caused the country, that indeed, as for many organizations, correspondence between the Coulee Region Turning club and the IRS would have mitigated the termination of our non-profit status.  At this juncture, if non-profit status were to be sought,  reapplication would seem inevitable. 

Members, please note that much thought and work went into writing the club By-Laws to comply to the IRS guidelines for meeting nonprofit status. I was a board member at the time, and recall much discussion and had input as many others did as well,  AND,  the club membership voted to apply for this determination rendered by the IRS and allocating the required funding from the club treasury. The membership at that time, albeit prior to the COVID-19 shutdown and prolonged epidemic saw the value over the long haul of such a charitable non-profit designation. Of  minor benefits are a small tax break that may result in making charitable contributions. The larger benefit is applying for grant dollars, getting club programming into organizations that take 501 (c) (3) status. All these and more benefits could be realized. At that time of seeking non-profit status, the club was substantially abundant in membership size, growing and participating in several community engagement activities, was highly viable, and conducting programming which spoke to the club’s mission.  That was a time of great fun, satisfaction, collegial relationships and introducing the craft of woodturning  to many people, fairly young and mature alike. 

I don’t recall the specific club expenditure of funds, which were approved by membership, somewhere in the area of about possibly $600?  It is my view now and for some period now, that club leadership frittered this opportunity away by not filling out the “simple” Form 990-EZ, essentially a post card, within 3 years of the IRS letter dated Sep 27, 2019.  To be sure, we know many organizations suffered during the COVID times. However, the club began meeting in person during the early part of 2021, I believe June at the Lion’s Shelter, next to the Onalaska Community Center, indeed outdoors,  and  even board meetings were conducted albeit over zoom.

I do not know or understand why the IRS correspondence lapse occurred ( there would be no cost other than a postage stamp),  but we all know the challenges and angst this lapse may have caused. If any of our personal household finances suffered an approx. $600 deficit,  our psyche would be affected as well as our financial bottom line. 

The meat of the IRS document that was returned to the club on about Sep 27, 2019 follows.

The latest By-Law’s were written Wed Apr 12, 2017 and sent to the IRS. 

If interested in the accuracy, see the posted a message to the CRW-Talk mailserver, located in the club electronic archive on April 12, 2017, 501 c 3 update.   ByLaw’s   <http://crwoodturner.com/pipermail/crw-talk_crwoodturner.com/> The crw-talk Archives (crwoodturner.com)

A rendering of the IRS document follows.

On Sep 27, 2019, the CRW  INC received notification, From Internal Revenue Service

PO Box 2508

Cincinnati, OH 54201

Public Charity Status: 509 (s) (2)

Form 990/999-EZ/900 -N-Required: YES

Effective date of Exemption: Sep 17, 2019

Contribution Deductibility: YES

Addendum Applies: NO

Department of Treasury 

Contract Telephone Number: 877 829 5500

Contact Person: Lee Crouch

CRW’s EIN: 82-1153646

The body of the letter informs us:  CRW INC is determined exempt from Federal Income Tax under Internal Revenue Code (IRC) Section 501 (C) (3).  Donors can deduct contributions they make to you under Internal Revenue Code IRC Section 170.

You’re also qualified to receive tax deductible bequests, devices, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. 

Organizations exempt under IRC Section 501(c) (3) are further classified as either public charities or private foundations. We determined you’re a public charity under the IRC Section listed at the top of this letter. 

……..our records show you’re required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 996-N, the e-Postcard. If you don’t file a required return or notice for three consecutive years, you’re exempt status will be automatically revoked.

If we indicated at the top of this letter that if an addendum applies, the enclosed addendum is an integral part of this letter

For important information about your responsibilities as ai tax-exempt organization, go to  <http://www.irs.gov/charities> www.irs.gov/charities. Enter 4221-PC in the search bar to view Publication 4221-PC, Compliance Guide for 501 (C) (3) Public Charities, which describes your recordkeeping, reporting and disclosures. 

Coulee Region Woodturners INC.

Sincerely,

Stephen………

Director, Exempt Organizations

Rulings and Agreements

End of IRS communication

I send this note to you, my fellow club members to make one last attempt to revive the vision that was integral to the club in the recent past. Seeking a non-profit status would indeed open many doors for club growth,  if the club desires growth. By not doing so,  those doors are closed.  

Sincerely,   

CRW Member Bob Raasch

From: Aaron Gesicki <aaronagesicki at gmail.com <mailto:aaronagesicki at gmail.com> > 
Sent: Monday, October 16, 2023 2:00 PM
To: Aaron Gesicki <aaronagesicki at gmail.com <mailto:aaronagesicki at gmail.com> >
Subject: CRW By-Laws circa 2018

Please see attached. These will be discussed during the next CRW Meeting. Attendees will be asked for input. 

Aaron Gesicki

1317 Woodpark Road

Winona, MN 55987

507-615-0233  home

303-551-2450  cell

_________________________________________ Use "Reply to All" or "Reply List" to reach the whole group, "Reply" goes only to sender. ______ crw-talk mailing list crw-talk at crwoodturner.com <mailto:crw-talk at crwoodturner.com>  http://crwoodturner.com/mailman/listinfo/crw-talk_crwoodturner.com Check the archive to make sure your message was sent: http://crwoodturner.com/pipermail/crw-talk_crwoodturner.com/ 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://crwoodturner.com/pipermail/crw-talk_crwoodturner.com/attachments/20231019/4f69a024/attachment.html>