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Old 02-25-2005, 01:59 PM
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Montague
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Default RE: Intersting article

I just skimmed the article and the responses. And I don't know anything about the author or any connection to AMA.

However, when talking about the AMA "pushing" education, it's important to remember that the AMA is registered with the government as a 501(c)(3) tax excempt educational organization. That means that they have to prove that they are out to educate people about something. In this case, model aviation or aviation in general, I think. If they don't, and the IRS decides they aren't, they can get hit for back taxes in a big kinda way. As I understand it, at least someone in the AMA thinks they are walking a bit close to the line as it is. The museam helps them claim (c)(3). As do other things. I'm fairly sure the "focus on education" column in MA is pretty much manditory for this. It's possible that MA or something going to every member is also part of this, though I'm not sure. (ie, it might be part of why the AMA doesn't have a "no magazine" full membership at reduced price)

Many clubs are set up as 501(c)(7) social organizations. This allows you to not have to try to teach anything to anyone, just hang out and do your thing. IMHO, it fits most local clubs better.

Note: I'm not an accountant or tax lawyer or anything like that. I've had some small experience working with some 501(c)(3) and (c)(7) groups in the past, including doing the books of a small 501(c)(7) for a few years as a volunteer, so I've seen the real-world impact of that difference in some specific cases, but I don't claim to be an expert.