[Board] Stipend

[treasurer at portsmouthyc.org]

Whit -

There is a problem in the recent Newsletter with the way you worded the
benefits given to the Secretary, Treasurer, and Communications Officer.
These are not paid positions as are the Steward and dockhands whose
salaries, wages and tips are reported to the IRS as taxable income. The IRS
is very particular about how certain words are used, and the word
"compensated" is one of them. Those three officer positions are NOT
compensated, nor are they paid. To publicly say they are either compensated
or paid opens a can of worms with the IRS that we definitely do not want to
get into. The IRS interprets the words "compensated" and "paid" to mean
"taxable income". I realize that you have probably not had to deal much with
the IRS and that the wording you used was not intended to cause trouble, but
it needs to be restated:

 

The Secretary, Treasurer and Communications Officer are volunteer positions
filled by club members. In appreciation of their service, their dues are
waived. They are also given a stipend, the amount of which is determined by
the Board of Directors, to reimburse the various and sundry expenses they
incur in fulfilling their duties.  

 

Please modify the newsletter immediately to reflect proper wording. 

 

Thank you,

Doyle Skeels, Treasurer

Portsmouth Yacht Club

(603) 661-6269

treasurer at portsmouthyc.org <mailto:treasurer at portsmouthyc.org>  

 

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