[Board-2018] December BOD agenda item

[Ron Laurence - Blueberry Bay Farm]

Roy:
In further support of Doyle's response, we should never use the word 
"profit" in any of our reports or meeting minutes, as this could be a 
flag to the IRS that our mission is to make a profit and thus risk 
losing our non-profit status ( and thus be income-taxed). (I experienced 
this years ago during an audit).
Ron Laurence


On 12/5/2017 2:12 PM, F DOYLE SKEELS wrote:
>
> Roy -
>
> This  is a common misconception. There are no "profits" from the 
> Mowers Race. The only profits we have at the club are from fuel sales 
> and we pay taxes on  those. There may be a  net flow of funds in or 
> out from our various activities, but we are, by definition, a 
> non-profit corporation. All funds that come in go to support 
> operations of the club. As a non-profit, and not a charitable 
> organization, we do not make (nor are we expected to make) donations 
> to other non-profits or government sponsored organizations as the 
> Rotary Club or a church might do. The only exceptions we make are 
> token amounts to the cause of a speaker at one of our dinners or to 
> make a donation in memory of  a member who passes. We can, of course, 
> set up activities in conjunction with other organizations to promote 
> sailing, but giving them money is not an appropriate use of our funds. 
> Besides, we are going to be lucky to break even  this  year and I 
> think it is likely 2018 will be negative net funds from operations.
>
>
> I would be happy to discuss this further with you if  you wish.
>
> Doyle
>
>> On December 4, 2017 at 8:46 PM Roy Briscoe <roysail at hotmail.com> wrote:
>>
>> I'd like to add an item to discuss what to do with the Mower Race 
>> profits. We are going to get a little over $600 for PYC's share of 
>> the Commodores Cup proceeds. Maybe we could think about donating most 
>> to a sailing cause such as UNH Sailing, Portsmouth High School 
>> Sailing team or KPYS Sailing school scholarship(s). The $600 includes 
>> some proceeds from people that paid ahead of time for the meal, 
>> $10/pp, and the rest is profit. T
>>
>> There are 5 races in the series so PYC gets 20% of the profits for 
>> the series.
>>
>> Regards,
>>
>> Roy


-- 
Ron Laurence Blueberry Bay Farm 38 Depot Road Stratham, NH 03885 
603-580-1612
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