Re: [AGA-sc] Aquatic Gardeners Assoc Contract

Short version: We are Civic but not Charitable. The AGA is recognized by the State of Mass as nonprofit since 2003. In 2004 the IRS recognized the AGA as a tax-exempt organizatin since the date of its incorporporation under 501(c)4.

Our Federal Tax ID is 04-3581535

The long version of the answer:

The Aquatic Gardeners Association, Inc. incorporated in Massachusetts in October 2001. In 2003, AGA received word that Massachusetts recognized AGA’s nonprofit status. An application was also submitted to the IRS requesting federal recognition of AGA’s nonprofit and tax-exempt status as a charitable organization under Internal Revenue Code (IRC) Section 501(c)(3), which section applies to organizations whose “purposes are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals.” AGA had requested recognition as a charitable organization whose primary purpose was educational. As an example of the relevance of IRC Section 501 (c) (3) to an organization like the AGA, the American Cichlid Association, Inc. recently received federal recognition under IRC Section 501 (c) (3) as a charitable nonprofit educational organization.

As David Lass previously reported to the Board, The IRS responded to the AGA’s application by saying that the AGA should submit a new application under IRC Section 501 (c) (7), which section applies to social clubs. Under the IRC, “social club” means one “organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities must be for these purposes”; “receives not more than 35% of its gross receipts, including investment income, from sources outside of its membership”; and “of the 35%, not more than 15% of the gross receipts may be derived from the use of the club's facilities or services by the general public or from other activities not furthering social or recreational purposes for members.”
The AGA submitted an application requesting recognition of tax-exempt status from the date of incorporation under IRC Section 501 (c) (7) in August 2004.

Later in 2004, the IRS asked for a listing of AGA’s 2004 activities and asked if the AGA would agree to being considered under subsection 501(c)4 instead of 501(c)7. Subsection 501(c)4 applies to civic organizations that operate primarily for the promotion and common welfare of the community (The Ladies Flower Society). We accepted and the IRS recognized us under 501(c)4.

We are not considered a charity and donations to the AGA are not tax deductible for Federal income tax purposes, you need 501(c)3 for that.

----- Original Message ----
From: Larry Lampert <l_lampert@yahoo.com>
To: Aquatic Gardeners Association Board <aga-sc@thekrib.com>
Sent: Tuesday, January 22, 2008 10:26:23 AM
Subject: Re: [AGA-sc] Aquatic Gardeners Assoc Contract

I have to admit Scott I actually laughed out loud when
I read your comments at the bottom :-).

Anyways, I agree with everything you said. I am still
working on the hotel on the banquet costs. I think we
can figure something out that will be better than what
we have now.

Scott, Can you tell me if we are a 503 or a 501 C or a
8675309? I am working on the insurance clause, and he
asked me about our status.

I am also adding your sentence to the "early departure
fee".

I reminded my sales guy that we are in the middle of a
new "great depression" so we need to find a way to
make this deal happen. He seemed to agree.

Karen can you contact Tomoko and Amano to see about
availability?

Thanks,

Larry

--- "S. Hieber" <shieber@yahoo.com> wrote:

> That sounds reasonable.
>
> Of course, attendance and the number of auction
> goods are two biggest unknowns this early in the
> planning process and the two revenue items that most
> affect financial performance -- so what else is new?
> In a bad year we could pull 40 or 50 and in a soft
> year we could pull at least 80 or 90 with Amano and
> something new.
>
> What's the worst case? Not the probable but the
> worst case? That we drop $10,000, TSA declares
> Atlanta's threat level to have gone to 11, which is
> more than 10, and we Board members are the only ones
> that show up -- in which case we could have one
> helluva party in Atlanta, assuming, of course, we
> don't get "blowed up real good." In fact, if that
> happened, I think we should commemorate the
> convention with a Big TAG special edition.
>
> What's the damage if we drop $10,000? AGA would
> still have about $50,000 in cash plus all those TAGS
> and PAMs in inventory, and we'd get first pick in
> the draft.
>
> Let's wrap this contract up and go to step two,
> Finding Amano. The Passion of Christel. The Sixth
> Senske. and then what?
> Desperately Seeking FernGuy.
> Win, Luis or Draw,
> The Arcuata of Narnia.
> And, Pirates of the Caribbean-Curse of the Black
> Algae.
>
>
>
> sh
>
>
>
> ----- Original Message ----
> From: Karen Randall <krandall@rdrcpa.biz>
> To: Aquatic Gardeners Association Board
> <aga-sc@thekrib.com>
> Sent: Tuesday, January 22, 2008 7:26:54 AM
> Subject: Re: [AGA-sc] Aquatic Gardeners Assoc
> Contract
>
>
> I'd really be surprised if we have a weak turn-out
> for this one. The venue is easy to get to and
> interesting. There is lots of opportunity for side
> trips in the area. We've already been talking about
> a beefier speaker line-up, including Amano. We have
> Seachem on-board. People are champing at the bit
> with the two-year wait since SF. I think this has
> the potential to be our biggest convention yet and,
> barring natural disasters, less chance than most of
> flopping.
>
> Karen>
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