rcmiket

OK you guys I need some help. Our AMA Chartered Club is losing our field(same old story housing moving in). We have some big companies here that will donate money to us to help with the new field but need the tax write off 503C. Being a Charter Club of the AMA they are a 503C (I think). Would we be able to use them to help us out? We looked into it ourselves and it a chunk of change to get the paperwork and such done. If anyone has any knowledge or maybe a contact in the AMA it would really help. Thanks in advance. Mike

rcmiket

Never mind I found my answer on the AMA website. Once again they are no help what so ever. I'm really starting to wonder why we pay dues at all.

Red Scholefield

My Feedback: (9)

Contact your D-VIII AVP, Jim Rice - he should be able to help you. Don't depend on some clerk in Muncie or worse yet your own interpretation of something you found on the AMA web site.

rcmiket

I see your point. What I found was a "Do It Yourself" and good luck PDF file on the AMA website. I'll follow up with a email to the proper people. I understand that with all the stuff going on now days that they could not open themselves up to the liability "blanket coverage". Our backs are up against the wall. Were looking at about 3000+ to get the 503C. Thanks for your input. Mike

bkdavy

My Feedback: (1)

Getting tax exempt status under 501-c is not in and of itself difficult. You simply have to demonstrate that you are a not for profit entity. The problem comes in getting a status that allows donations by outside parties to be tax exempt. There are several section of 501-c. Most hobby oriented clubs fall under section (7), which allows the club to not have to pay income taxes, but donations are not tax deductible. What you are looking for is an exemption under 503-c (3), which means your organization must be solely for the purpose of charitable or educational purposes. Most RC clubs do not meet this requirement.

Brad

rcmiket

Brad; We have done a in depth study of the process and believe me its a bureaucratic nightmare. We have done the necessary ground work to get it done but it seems that the 3 grand would be better spent on the field.That's why I question the AMA's ability to help. We are prepared to do what it takes to keep flying but our predicament is not uncommon today many clubs are facing what we are. Not all have the "friends necessary" to finance a flying field. I have contacted the Jim Rice and "flying field assistance" guy from D8. I'll keep you informed. Mike

bkdavy

My Feedback: (1)

I don't know what's involved in Texas, but my club incorporated last year in Maryland. I did all the paperwork myself (wasn't too difficult using templates from the State). I also filed all the requests for tax exemption, etc. I probably spent about 10 hours, and our total costs, mostly application fees to the State and to the IRS, were about $400. To hire a lawyer to accomplish the same task probably would have been in the $3 grand range. Actually, the AMA documents were really quite helpful for me.

Good luck with the field.

Brad

rcmiket

Incorporation and a 503 are 2 way different things. We did the incorporation ourselves ( to protect the officers). This is a different ballgame all together it involves rewriting bylaws a board 0f directors a mission statement as to why your eligible to be tax free then someone with the expertise to see it though. That's were the 3 grand comes in. If the IRS questions anything you need someone to "correct or plead" your case.I don't wish this on anyone. Seems like with all the money's spent up in Muncie we could get some help. Now if it the Muncie site were in our shoes I'm sure the "pursestrings" would be wide open. Just for thr record our club has donated over 8 grand to local charities over the last 6 years that's the only reason some of the locals are willing to help. They just need the 503C to cover there books and I dont blame them a bit. Mike

STLPilot

My Feedback: (21)

OMG here we go again ... besides the charter program, insurance, magazine, national events ... yada yada yada ... what has the AMA ever done for us?

All this money? You spend $58 same as everyone else and even got a magazine subscription to boot. Whose money are you talking about? I'm happy with what I paid this year, so don't bring my money into this discussion. So above and beyong the $58 you sent in...what money are you talking about that "we" spent?

Somehow a bunch of other clubs figured out how to 501C3 on thier own. I mean where in the AMA's mission statement does it say they are supposed to fill out your 501C3 documents so that you can get free money from your local charity drives? Nothing in life where people give you free money for no reason is easy. This is why you have a club to help you with the efforts and to share the expenses. Sounds to me your blaming the AMA for your clubs lack of interest or "fear" of a 28 page document that a 4th grader could fill out. OMG 28 pages of questions, 75% of which are yes and no!!

$3k, ha. How about you just take a crack at the paperwork before you have to start calling a lawyer. Put a little elbow grease into that document you have to fill out. Depending on the "effort" you want to put into filling it out it might not cost you more then the filing fee. Put in 10% effort, will cost you about $2700. 20% effort $2400 ... and so on. The IRS 1023 is not a MCAT, they are simple questions for simple people.

I just have a feeling your in a rush to get it done, you want it now and you want the AMA to do it for you. You found out it was work and now here you are to vent, go figure, same forum different day. The AMA did enough to help you jump start you mission, like a birds nest ... now just jump out ... errr feet first remember!

rcmiket

Hows that field coming in Central Park? STL once again you have it all figured out. Thanks for the advise.

Hossfly

[:-]

bkdavy

My Feedback: (1)

The $400 we spent included the application to the IRS and the State of Maryland for the 501c(7) status (tax exempt hobby oriented club). If your club is in the position of raising significant amounts of money to be donated to other tax exempt charities, foundations, scholarships, etc, then you might be in a good position to get tax exempt status under 501c(3). The IRS doesn't spend a lot of time and effort on small fish like us. You fill out the application, and if you meet the criteria, you get a letter back with your tax exemption. It took us about 6 months from start to finish.

I wish you luck in your quest.

Brad

rcmiket

I just got a email from Jim and Wes. There looking into it for us. I'll keep you posted .Mike

STLPilot

My Feedback: (21)

Still working on it, thanks for asking. Didn't and won't ask a single person to help me one single bit, but I have gotten offers. And have never complained once to anyone because it was and still remains a challenge. Did manage to get some free flight programs in several NYC rec centers starting this summer and fall, all of them free of charge, that was a good start and that alone took about 10 meetings and 200 phone calls.

But either way if it gets going or doesn't get going, I won't be blaming it on the AMA. They've already done their part by just being there.

Sounds like bkdavy had the right idea, not too surprised, he's above a certain parallel, literally.

rcmiket

Once again your the man. All the answers all the time.

STLPilot

My Feedback: (21)

Why did I jab? Look at post 8. I think Muncie has gone way overboard to assist. Your really making this harder then it has to be. Send a couple PM's to bkdavy, he knows what he's talking about.

rcmiket

There's different 503's we need the 503C we have done our homework. The AMA got back with us and can't help I already knew that. We'll just plug along and get it done. I thanks all who have tried to help.