RE: Question: "Model Aviation" /Dues
It just boggles my mind that you came up with all these conclusions from all that. You've missed every single point your President was trying to make.
If MA moves out from the LEGAL method of unrelated business for a 501C3 as a standalone product the net cost to each member will go from $6-7 per member to just a regular price of any old magazine. MA is subsidized by the members in the ballpark of 50% ONLY because it operates as a 501C3.
Here are the downsides some of which were CLEARLY directed by our President in this thread: MA will lose the HUGE shipping break they get from the USPS as a 501C3. They will also lose subscription base, which will increase production costs. They will have to lower advertising rates even further due to the lower subscription base. Your theory of MA keeping rates low, on purpose, is 100% bunk. And Hoss I've been advertising and suggesting placement for more then 12 RC companies for the last 4 years, I know legitimate and marketable ad rates in this business. And then of those all that free content people DONATE to the AMA, gone. Whose going to donate their free time for to a for profit company, unless they are looking to get a free plug on a company self made review like you see in the other magazines? And then comes all your standard business, operational, accounting costs and risks. And then of course, if the company is formed as a C corporation, DOUBLE TAXATION.
Oh after all that, the AMA would have to produce something to ship out to the members each month as a mail piece, so they are right back where they started. Like Dave said, there was a time that MA was opt-in only. But as the magazine found ways to reduce costs as a combined NFP/unrelated business entity and it no longer became a viable option TO THE MEMBERS AS A BENFIT. Any investment advisor ON THIS EARTH would have told the AMA to make that particular move and I'm sure whatever advisor they used told them to make this move and it WORKED.
I am TRULY amazed at you this time Hoss, unreal. Every single benefit that a 501C3 can legally operate is being utilized to save members money, while offering a benefit.