Question for peterg and AACA BOD

[Brassbus]

Peter and others-

Could you please clarify something for me.

The Board of Directors of another car club (not affiliated with this site) has just voted to close it's site to non-members. The reason that was given was:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> The decision of making the V*** chat forum was essentially that of a business obligation to maintain our strick (sic.) adhesion to guidelines from the IRS to be a member-based non-profit organization.

The chat forum is essentially a service of the club that it provides to its members. If you provide a service to both dues-paying-members and those who do not, then you've violated part of your responsibility as a non-profit.

The V*** could risk losing its status by offering services to non-members.

Thus, the decision was critical to protect the interests of the organization.

</div></div>

My questions are:

Does this Collectable Automobile Discussion Forum in any way jeopardize the non-profit status of the AACA? Does it jeopardize the non-profit status of any of the other clubs that participate in this site? If there were DF related obstacles in retaining NP status, how where they overcome?

Thank you,

Brassbus

[Steve Moskowitz]

Interesting, I do not believe we are in the same situation. Our operations were closely scrutinized for our recent application as a charitable organization (we are already non-profit) and to my knowledge we are in total compliance with IRS regulations. However, I will get the expert in this matter to answer your post. Our BOD is in Florida for the first meet of the year and may not have access to the internet. Thanks for the heads up, just in case!

[Douglas Drake]

The question you have asked is one that has been discussed extensively, the AACA is a broad based organization to service all individuals with a goal of preservation involving every different automobile made and as you probably know a number of things we have on the web site are closed to our own members and requires membership numbers and passwords to view it. This is information that is specifically available to members only. Each organization needs to evaluate its tax status and what it is providing to its members, Perhaps very specific clubs with specific information pertaining to their automobile is very pertinent to its members and have to be treated as membership benefits and should be for its members only.

In all cases you need to utilize an attorney familiar with the IRS rules to evaluate each situation including forum discussion involving their club vehicles

Douglas Drake

Chairman of the AACA restructure committee

[Guest rcirilli]

From someone who has had a little experience in this area, It would be very difficult for a web site or any public information system to have an effect on an IRS non-profit organization. It never hurt to get legal perspective dealing with the specific organization but a violation would be rare. Problems with non-profit organizations occurs far more often when someone or a group of parties are benefiting financially from an action that is unrelated to the organizations charter with the IRS. It also should be noted that most orgainizations that call themselves non-profit are not under one of the IRS code sections, maily 501--. On the other hand there is a lot of flexibiltiy, one group that is a good example of that is the Masons organization. They have a lot of exposure but their focus is always on their charter purpose. An organization that has concerns can always ask the IRS to have a non-profit specialist meet with them. They rarely ever bite!

[Brassbus]

Thanks for the inteligent responses. It would be helpful to hear from representatives of the other clubs that participate on this site. Have your clubs had any problems with the IRS concerning individual DFs and non-profit status?

The overwhelming member response to the V***'s initial action was negative, but after the IRS excuse was used, the reaction changed in support. I have a feeling that we are being led down the garden path, and I suspect there is a darker reason for closing it's site to non-members.