[TheThinkTank] 1023 forms:ATTN BIKE KITCHEN AND SOPO

Jonathan Morrison jonathan at slcbikecollective.org
Fri Oct 5 10:06:20 PDT 2007


Technically all non-profits need to file 990 forms every year now and on
those forms you have to assign an in-kind donation value.  In other words,
if you get 100 bikes valued at $100 in a single year - then you are making
$10,000.

I will also agree with Kyle with his statement of  'ask for forgiveness not
permission' that seems to be the best policy to take with the IRS.  For
example, we wanted to institute membership into our organization which
contradicted our original application stating that we would NOT have
membership.  In calling the IRS, they said it would cost over $1000 if we
tell them we are going to do it, but it wouldn't cost anything if we do it
and tell them later.  Go figure.  Maybe that applies to the 1023 application
as well.

http://www.bikecollectives.org/wiki/index.php?title=IRS_Form_1023

-- 
Sincerely,

Jonathan Morrison
Project Coordinator
Salt Lake City Bicycle Collective
2312 S. West Temple
Salt Lake City, UT 84115
w: 801-328-2453
c: 801-688-0183
f: 801-466-3856
www.slcbikecollective.org

On 10/5/07, Urban Bike Project of Wilmington, Inc. <
urbanbikeproject at gmail.com> wrote:
>
> We filed for $300 under the "less than 10,000/yr" bracket.  I believe that
> is what Sopo did from looking at their application<http://www.bikecollectives.org/wiki/index.php?title=IRS_Form_1023>on the wiki.  We are reasonably sure that we will be making less than 10k a
> year for a while.  If and when we do, it should not be a problem to report
> the change to the IRS and pay (if that's what's needed) the additional 350.
>
> Brian
> Urban Bike Project of Wilmington
>
> On 10/5/07, Kyle McKinley < cariadkyle at hotmail.com> wrote:
> >
> >  Ariel and all-
> >
> > my understanding is that this is a pretty clear example of 'do what you
> > want and ask permission later', because you can simply update the IRS as to
> > your budget later, when/if it becomes an issue, or when/if they notice that
> > you are out of line. Some things you can't appologize for later (and, I'm
> > sure, Ariel, that you know that I've done more than a few of those) but this
> > seems like just the kind of gray area that is safe. Anyone out there know
> > for sure that I'm wrong?
> >
> > your friend,
> >
> > kyle
> >
> > (bike---->BICAS)
> >
> >  ------------------------------
> > From:  *"Ariel raymon" < bikefarm at gmail.com>*
> > Reply-To:  *The Think Tank <thethinktank at lists.bikecollectives.org >*
> > To:  *"The Think Tank" <thethinktank at lists.bikecollectives.org >*
> > Subject:  *[TheThinkTank] 1023 forms:ATTN BIKE KITCHEN AND SOPO*
> > Date:  *Fri, 5 Oct 2007 08:28:22 -0700*
> >
> > Hey there,
> >  Ariel from portland Bike Farm Inc. We met with our lawyer to file the
> > 1023 forms, and there were
> >  a couple things we forgot to ask him. there's a section that says, if
> > you'll be making over $10,000
> >  in Revenue in a year, the fee to file te forms to the IRS is $750, but
> > if you'll be making less,
> >  then its only $300. If our organization hasn't projected to be making
> > more than $10,000 the first
> >  and second year, but possibly the 3rd, should we be paying the $750 or
> > $300?
> >  let us know... as we're in the process of doing it all, and may need to
> > get money quick.
> >  thanks,
> >  Ariel
> >
> > >_______________________________________________
> > >Thethinktank mailing list
> > >Thethinktank at lists.bikecollectives.org
> > >http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.org
> >
> >
> > _______________________________________________
> > Thethinktank mailing list
> > Thethinktank at lists.bikecollectives.org
> > http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.org
> >
> >
> >
>
>
> --
> Visit us online at http://urbanbikeproject.org
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>
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>
>
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