Here is my take on REI(I've been a member since 1976). The REI sales stores & on line REI are indeed a 'co-op', but not a non-profit. The REI Foundation -which is supported by REI stores- IS a non-profit 501 (c) (3). Two separate entities. So to get info from REI, make sure you talk to REI Foundation.

On Fri, Mar 4, 2011 at 6:47 PM, Jon Levin <yoni11@comcast.net> wrote:
I would think that REI Co-Op is an example...they sell bikes...they are a co-op...they are big...they are non-profit.
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Subject: Thethinktank Digest, Vol 55, Issue 3


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Today's Topics:

 1. IRS Questions (Kelly Martin)
 2. Re: IRS Questions (John Patterson)
 3. Re: IRS Questions (reno bikes)


----------------------------------------------------------------------

Message: 1
Date: Thu, 3 Mar 2011 18:07:02 -0800
From: Kelly Martin <kelly@bicyclekitchen.com>
To: The Think Tank <thethinktank@lists.bikecollectives.org>
Subject: [TheThinkTank] IRS Questions
Message-ID: <36946C6A-CD7D-451B-8109-48A9E7949029@bicyclekitchen.com>
Content-Type: text/plain; charset="us-ascii"; Format="flowed";
DelSp="yes"

We are looking for any bike co-ops that have tax-exempt status as a
public charity under Section 501(c)(3) of the tax code.  Basically, we
have run into a question as to whether and to what extent we may make
retail sales of bikes, bike parts and accessories as part of our
regular operations without (i) paying income tax (as unrelated
business taxable income) and (ii) otherwise affecting our tax-exempt
status.  Does your co-op sell bikes, bike parts and/or accessories
directly to the public without those sales being part of your
educational program?

In addition, are there any co-ops out there who are associated or
operated in tandem with a for-profit business.  This would be
structured so that the for-profit business supports the not-for-profit
entity.

Finally, we are assuming that most co-ops with tax-exempt status
received their charitable status for education purposes.  Are there
any co-ops out there which have received tax-exempt status on another
basis?

The Bicycle Kitchen is a 501c3 nonprofit under the educational category.

Thank you!


Kelly Martin, Operations Facilitator
The Bicycle Kitchen/La Bicicocina
706 N. Heliotrope Dr., Los Angeles, CA 90029

W 323.NOCARRO  |  M 213.210.5631
kelly@bicyclekitchen.com | www.bicyclekitchen.com
http://www.bicicocina.blogspot.com

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Message: 2
Date: Thu, 3 Mar 2011 21:32:04 -0500
From: John Patterson <john.patterson@velocitycoop.org>
To: The Think Tank <thethinktank@lists.bikecollectives.org>
Subject: Re: [TheThinkTank] IRS Questions
Message-ID: <058F355D-D635-44BE-ABD0-C3ED5B1FE441@velocitycoop.org>
Content-Type: text/plain; charset="iso-8859-1"; Format="flowed";
DelSp="yes"

Kelly,

Here at the V?loCity Bike Co-op have 501(c)(3) status, as a public
charity.  We do "sell" (suggested donations) refurbished re-cycled
bikes, and bike parts and accessories (new and used), and our tax
advisor says we are AOK, and do not need to pay income tax, but we do
have to pay state sales tax in Virginia, for merchandise
"sales" (suggested donations), but not for services (stand time,
classes, etc.).  Hope that helps (yep, I like parentheses).

Regards, John
___________________________
John Patterson | V?loCity Bicycle Co-op | 204 S. Union St.,
Alexandria, VA  22314 | john.patterson@velocitycoop.org | +1
703-835-0699 | Mobile: +1 703-608-3660



On Mar 3, 2011, at 9:07 PM, Kelly Martin wrote:

We are looking for any bike co-ops that have tax-exempt status as a
public charity under Section 501(c)(3) of the tax code.  Basically,
we have run into a question as to whether and to what extent we may
make retail sales of bikes, bike parts and accessories as part of
our regular operations without (i) paying income tax (as unrelated
business taxable income) and (ii) otherwise affecting our tax-exempt
status.  Does your co-op sell bikes, bike parts and/or accessories
directly to the public without those sales being part of your
educational program?

In addition, are there any co-ops out there who are associated or
operated in tandem with a for-profit business.  This would be
structured so that the for-profit business supports the not-for-
profit entity.

Finally, we are assuming that most co-ops with tax-exempt status
received their charitable status for education purposes.  Are there
any co-ops out there which have received tax-exempt status on
another basis?

The Bicycle Kitchen is a 501c3 nonprofit under the educational
category.

Thank you!


Kelly Martin, Operations Facilitator
The Bicycle Kitchen/La Bicicocina
706 N. Heliotrope Dr., Los Angeles, CA 90029

W 323.NOCARRO  |  M 213.210.5631
kelly@bicyclekitchen.com | www.bicyclekitchen.com
http://www.bicicocina.blogspot.com

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Message: 3
Date: Fri, 4 Mar 2011 10:50:27 -0800
From: reno bikes <renobikeproject@gmail.com>
To: The Think Tank <thethinktank@lists.bikecollectives.org>
Cc: John Patterson <john.patterson@velocitycoop.org>
Subject: Re: [TheThinkTank] IRS Questions
Message-ID:
<AANLkTik0pwazepnid-HD-sPBZYYXjddrp++d4McMyfaD@mail.gmail.com>
Content-Type: text/plain; charset="iso-8859-1"

At RBP we are 501(c)3 status - charitable org, and are tax exempt under Nev.
Dept. of Tax.

We operate much like a normal bike shop does except where the IRS doesn't
allow us to (ie disbursments of profits to employees)

Our program is largely modeled after the HUB in Bellingham, Washington who
operates in the same way. Revenue is generated which goes back into the org,
pays employees, rent etc.

We are more or less self-sufficient, with our donations and small grants
going to our education and charitable programs.


Hope that helps.

Noah




On Thu, Mar 3, 2011 at 6:32 PM, John Patterson <
john.patterson@velocitycoop.org> wrote:

Kelly,

Here at the V?loCity Bike Co-op have 501(c)(3) status, as a public charity.
 We do "sell" (suggested donations) refurbished re-cycled bikes, and bike
parts and accessories (new and used), and our tax advisor says we are AOK,
and do not need to pay income tax, but we do have to pay state sales tax in
Virginia, for merchandise "sales" (suggested donations), but not for
services (stand time, classes, etc.).  Hope that helps (yep, I like
parentheses).

Regards, John
___________________________
John Patterson | V?loCity Bicycle Co-op | 204 S. Union St., Alexandria, VA
 22314 | john.patterson@velocitycoop.org | +1 703-835-0699 | Mobile: +1
703-608-3660



On Mar 3, 2011, at 9:07 PM, Kelly Martin wrote:

We are looking for any bike co-ops that have tax-exempt status as a public
charity under Section 501(c)(3) of the tax code.  Basically, we have run
into a question as to whether and to what extent we may make retail sales of
bikes, bike parts and accessories as part of our regular operations without
(i) paying income tax (as unrelated business taxable income) and (ii)
otherwise affecting our tax-exempt status.  Does your co-op sell bikes, bike
parts and/or accessories directly to the public without those sales being
part of your educational program?

In addition, are there any co-ops out there who are associated or operated
in tandem with a for-profit business.  This would be structured so that the
for-profit business supports the not-for-profit entity.

Finally, we are assuming that most co-ops with tax-exempt status received
their charitable status for education purposes.  Are there any co-ops out
there which have received tax-exempt status on another basis?

The Bicycle Kitchen is a 501c3 nonprofit under the educational category.

Thank you!


Kelly Martin, *Operations Facilitator*
The Bicycle Kitchen/La Bicicocina
706 N. Heliotrope Dr., Los Angeles, CA 90029
*
*
*W 323.NOCARRO  |  M 213.210.5631*
kelly@bicyclekitchen.com | www.bicyclekitchen.com
http://www.bicicocina.blogspot.com

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