Thanks for your kind words Marty.
Our Foundation was originally incorporated at a 501(c)3 back around 1988. In the mid 1990's, several state bowling associations were audited by the IRS because our Grand Prix scholarship program, the sole activity of our foundation, was deemed to not be for "the public good" as a charity and the (c)3 was revoked for us and three other states back in 1995.
The Grand Prix program is a youth bowler retention program, only available to member centers and their bowlers. Hence, not really a charitable activity. The foundation's board at that time opted to restructure and take the IRS's option to convert to a (c)4.
Fast forward to my coming in earlier this year. It was clear to me that we didn't need the corporate and governance structure for our Grand Prix scholarship program, especially since the association (a c6) was already doing several other youth scholarship programs.
The added administration of the activities of the Grand Prix, are a bit of a PITA, since the association runs the tournaments and does the administration, and then transfers the money over to the foundation to maintain the restricted liability accounts until the student(s) graduation and are eligible to apply their scholarship funds we're holding to their college or post education bills.
There hasn't been a separate staff, only the board/governance and the related things like banking accounts, etc. The bookkeeping alone, was way more than necessary . . . too complex and for no end benefit or value.
My long term vision is for us to create a true 501(c)3 that will be a public charity, not to benefit only our members and their customers. That is important in that most companies and especially other 501(c)3's will only make donations to those with the c3 exemption from the IRS. It's part of our strategic plan . . . year four or five.
I would say that if your foundation and the activities you envision will be viewed as "for the public good" and not just to the benefit of your members or their employees/families, you should be OK. But if not, you could face some of the issues Foundation of BCAW had back in the 90's.
Hope this helps as you navigate through your situation. I look forward to the opportunity to catch up with you in person at the Dec. 4th event.
Yvonne
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Yvonne Bennett CAE, SPHR
Executive Director
Bowling Centers Association of Wisconsin
Pewaukee WI
(262) 783-4292
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Original Message:
Sent: 11-10-2014 11:23
From: Martin Tirado
Subject: Seeking Input - Board Structure - State Trade Association
Yvonne, a well-deserved congrats to you as this appears to have been well thought out and considerable work that often goes unrecognized. You look like your on your way to much improved association governance.
For your 501c4, I'm curious as to why not, either now or at it's origination, not incorporate as a c3? We are looking into incorporating a c3 based on a small, but growing scholarship fund. Just an initial opinion we have is the charitable tax deduction benefit of a c3 would help in fund contributions from our members.
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Martin Tirado CAE
Chief Executive Officer
Snow and Ice Management Association, Inc.
Milwaukee WI
(414) 375-1940
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Original Message:
Sent: 11-08-2014 12:19
From: Yvonne Bennett
Subject: Seeking Input - Board Structure - State Trade Association
>>>1. We are taking action to dissolve our 501c4 foundation on 12/31/14. We are through all steps necessary to take this to a membership vote on 12/1/14. We anticipate no challenges.<<<
I should have said that we will be merging the operations of our foundation into that of the association since nothing that we do in our 501c4 entity is unique to what our association is doing in terms of providing scholarship opportunities and events for youth bowlers.
YB
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Yvonne Bennett CAE, SPHR
Executive Director
Bowling Centers Association of Wisconsin
Pewaukee WI
(262) 783-4292
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