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
We filed for $300 under the "less than 10,000/yr" bracket. I believe that is what Sopo did from looking at their applicationhttp://www.bikecollectives.org/wiki/index.php?title=IRS_Form_1023on 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@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@gmail.com>* Reply-To: *The Think Tank <thethinktank@lists.bikecollectives.org >* To: *"The Think Tank" <thethinktank@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@lists.bikecollectives.org http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
Thethinktank mailing list Thethinktank@lists.bikecollectives.org http://lists.bikecollectives.org/listinfo.cgi/thethinktank-bikecollectives.o...
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
Dearest Kylie,
How are you? Its so nice to feel connected to you through this much larger community of people. SO we just got our website up and running. You should check us out.... www.bikefarm.org. There's pics up of the workparty! its all very exciting. Thanks for all the stuff on concensus. I'm hoping to have a workshop on it before our shop opens, but it'd be really cool if when you came to visit (if you do sometime soon) you could teach a workshop. We're hoping to start wrenching in the space Dec 1!. We're having all these benefit events to try to get the money to buy tools and stuff, but our tools are gonna cost us somewhere around 1200 bucks! ah.... we're planning 2 shows and an afterparty for the halloween alleycat at my house.. I wish you could see it all.. We even had someone ELSE facilitate our meeting last night.... anyway, I hope you're well...I'll be in AZ I think from the 22nd to the 30th of Dec. SO hopefully we'll be in Tempe like 3 days and then Tuscon like 3 days.... we gotta figure it out... let me know how you are. xo RaRa
thethinktank@lists.bikecollectives.org
-
Ariel raymon -
Jonathan Morrison -
Kyle McKinley -
Urban Bike Project of Wilmington, Inc.