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Form 1023 Draft: Difference between revisions

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(New page: {{Floating TOC}}Below is the proposed draft of the HacDC IRS [http://ftp.irs.gov/charities/article/0,,id=130101,00.html Form 1023]. This is the form we need to fill out to become a 501(c)...)
 
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== Issues of note ==
== Issues of note ==
* We should complete our Bylaws amendments before submitting this application.  (See Part II, Line 5)
* We should complete our Bylaws amendments before submitting this application.  (See Part II, Line 5)
* We should make sure all our DC filings are complete and correct (i.e. registered agent, registered office) before submitting.
* We should prepare an Annual Report, as per our bylaws, describing the activities of HacDC and giving our financial picture from our Tax Year ended December 31, 2008.  (See [[Form_1023_Draft#Part_IV:_Narrative_Description_of_Your_Activities | Part IV]])
* Even though we have no paid staff or contractors, it may be a good idea to adopt compensation policies as described  (See [[Form_1023_Draft#Part_V_:_Compensation_and_Other_Financial_Arrangements_With_Your_Officers.2C_Directors.2C_Trustees.2C_Employees.2C_and_Independent_Contractors | Part V]])


== Sections to note ==
== Sections to note ==


The "difficult" sections will be noted here.  These are the ones that require real thought as opposed to simple plugging away of information
The "difficult" sections will be noted here.  These are the ones that require real thought as opposed to simple plugging away of information
* [[Form_1023_Draft#Part_IV:_Narrative_Description_of_Your_Activities | Part IV]]


== Part I : Identification of Applicant ==
== Part I : Identification of Applicant ==
Line 27: Line 32:
== Part II : Organizational Structure ==
== Part II : Organizational Structure ==


Note: We are a Not for Profit corporation organized in the District of Columbia, organized specifically to become a 501(c)(3).
We are a Not for Profit corporation organized in the District of Columbia, organized specifically to become a 501(c)(3).


# Are you a corporation?: '''Yes''' ''Tim should have our original articles of incorporation''
# Are you a corporation?: '''Yes''' ''Tim should have our original articles of incorporation''
Line 33: Line 38:
# Are you an unincorporated association?: '''No'''
# Are you an unincorporated association?: '''No'''
# Are you a trust?: '''No'''
# Are you a trust?: '''No'''
<ref name="Part II Line 5" />
# Have you adopted bylaws?: '''Yes''' ''Note:  We should complete all proposed bylaws amendments before submitting this application.''
# Have you adopted bylaws?: '''Yes''' ''Note:  We should complete all proposed bylaws amendments before submitting this application.''
== Part III : Required Provisions in Your Organizing Document ==
We have all the required language in our [[Articles of Incorporation]]
# Section 501(c)(3) requires that your organizing document state your exempt purpose(s)...: '''Yes  [[Articles_of_Incorporation#4Third Article | Third Article]]'''
# Section 501(c)(3) requires that upon dissolution of your organization, your remaining assets...: '''Yes [[Articles_of_Incorporation##Sixth_Article_:_Management.2C_Affairs_and_Activities_and_Provision_for_Dissolution | Sixth Article]]'''
== Part IV: Narrative Description of Your Activities ==
This is the part of the application that will require the most discussion among our members.  We may choose to attach our Annual Report, which we should prepare before submitting the application.  In addition to a narrative of projects we're working on and the general nature of the space, what we're doing and what we plan to do, the Annual Report should be professional looking and serve as an attractive promotional device for HacDC.  [http://www.carnegie.org/pdf/CCNY-AR08-18.pdf Here's a good example] of an Annual Report from the Carnegie Foundation
=== Instructions from the application ===
Using an attachment, describe your '''past, present, and planned activities in a narrative'''. If you believe that you have already provided some of this information in response to other parts of this application, you may summarize that information here and refer to the specific parts of the application for supporting details. You may also attach representative copies of newsletters, brochures, or similar documents for supporting details to this narrative. '''Remember that if this application is approved, it will be open for public inspection.''' Therefore, your narrative description of activities should be thorough and accurate. Refer to the instructions for information that must be included in your description.
=== Instructions from the form instructions ===
For each past, present, or planned activity, include information that answers the following questions:
* What is the activity?
* Who conducts the activity?
* When is the activity conducted?
* Where is the activity conducted?
* How does the activity further your exempt purposes?
* What percentage of your total time is dedicated to the activity?
* How is the activity funded?
* List any alternate names under which you operate
If you have a website, you may attach a paper copy of to support your narrative description of activities
=== Sample Activity: Microcontroller Mondays ===
Note: This is by no means complete, this is just to give an example of a good description of the activity.  The same information may be presented in a less structured/more narrative form, as long as the questions are answered.
* Microcontroller Mondays is a weekly gathering of those interested in the pursuit of microcontroller-driven devices, their designa nd theory.  The event is open to the public, designed for all skill levels and serves as one of the organization's primary "entry points" for involvement.
* The activity is conducted by volunteer members of HacDC
* The activity is conducted most Monday nights
* The activity is conducted at HacDC's laboratory space
* The activity furthers the following exempt purposes
** Charitable: The activity is free and open to the public.  HacDC's equipment, meeting space and some consumables are made available to all participants.  Other non-profit organizations and those pursuing charitable activities use the weekly meetup to learn more about microcontrollers and other electronic technology as well as network with those who have expertise and are willing to apply that expertise to relevant charitable work.
** Educational: The activity's primary aim is information exchange and mentorship on the science of microcontroller design and theory.  Experts and those well-versed in the technology share information with each other and mentor those with little to no experience with the technology.  Often, a potential hobbyist will bring a project they cannot complete to the event to seek advice and mentorship in completing the project and learning techniques and theory to complete more advanced projects or design new ones.
** Scientific: The activity's secondary aim is to engage with microcontroller and related technology, discover new applications of the technology and test the limits and potentials of existing technology and theory in the field.
* Approximately 15% of our total volunteer and member hours are dedicated to this activity
* The meeting space and utilities for the space are funded by members, the equipment is primarily donated or paid through membership dues and donations. Those participating in mentorship and research activities do so as volunteers.
== Part V : Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors ==
HacDC has no paid staff, officers, volunteers, etc.  As such, this clause should present no issue to us, though we may want to adopt policies stating under what circumstances someone would be compensated (i.e. a teacher of a class, speaker, etc.)
This clause was expanded in the most recent revision of the application to ferret out organizations formed primarily for the enrichment of the participants.  It's common for hobbyists in the field to form their own non-profit to fund their presumably exempt activities as a primary career.
'''However, the officers will have to attach a list "showing their name, qualifications, average hours worked, and duties."'''
Note: The officer titles are most likely going to change pending a Bylaws revision.
: 1a.
: Elliot Williams / Coordinator in Chief / 1525 Newton St NW, Washington DC, 20010 / -$0-
: (Other officers, etc.)
: 1b. '''None'''
: 1c. '''None'''
: 2a. Are any of your officers, directors, or trustees related to each other through family or business relationships? If “Yes,” identify the individuals and explain the relationship. '''No'''
: 2b. Do you have a business relationship with any of your officers, directors, or trustees other than through their position as an officer, director, or trustee? If “Yes,” identify the individuals and describe the business relationship with each of your officers, directors, or trustees. '''No'''
: 2c. Are any of your officers, directors, or trustees related to your highest compensated employees or highest compensated independent contractors listed on lines 1b or 1c through family or business relationships? If “Yes,” identify the individuals and explain the relationship. '''No'''
: 3a. For each of your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines 1a, 1b, or 1c, attach a list showing their name, qualifications, average hours worked, and duties.  '''Attached list of qualifications, etc.''' ''This is where the officers will have to list their duties, qualifications, etc.''
: 3b. Do any of your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines 1a, 1b, or 1c receive compensation from any other organizations, whether tax exempt or taxable, that are related to you through common control? '''No''' ''This assumes that none of the officers work or have business or other outside interests with the same entities.''
: 4. In establishing the compensation for your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines 1a, 1b, and 1c, the following practices are recommended, although they are not required to obtain exemption. Answer “Yes” to all the practices you use.
: 4a. Do you or will the individuals that approve compensation arrangements follow a conflict of interest policy? '''No'''
: 4b. Do you or will you approve compensation arrangements in advance of paying compensation? '''No'''
: 4c. Do you or will you document in writing the date and terms of approved compensation arrangements? '''No'''

Revision as of 17:10, 30 March 2009

Below is the proposed draft of the HacDC IRS Form 1023. This is the form we need to fill out to become a 501(c)(3) status.

This wiki article will document proposed answers to the form, following on a Part and Line Item basis. You can follow along using the complete 1023 form, or check out the 1023 form instructions.

Issues of note

  • We should complete our Bylaws amendments before submitting this application. (See Part II, Line 5)
  • We should make sure all our DC filings are complete and correct (i.e. registered agent, registered office) before submitting.
  • We should prepare an Annual Report, as per our bylaws, describing the activities of HacDC and giving our financial picture from our Tax Year ended December 31, 2008. (See Part IV)
  • Even though we have no paid staff or contractors, it may be a good idea to adopt compensation policies as described (See Part V)

Sections to note

The "difficult" sections will be noted here. These are the ones that require real thought as opposed to simple plugging away of information

Part I : Identification of Applicant

  1. Full name of organization (exactly as it appears in your organizing document): HacDC
  2. c/o Name (if applicable): (Not Applicable)
  3. Mailing address: 1525 Newton St NW, Washington DC 20010 Note, there is no room or suite for HacDC
  4. Employer Identification Number (EIN): (Tim Collins should have this number)
  5. Month the annual accounting period ends: 12 We follow a calendar accounting year
  6. Primary contact: Contact information for Elliot or Tim, whoever wants to be the primary.
  7. Are you represented...: No This line is if attorneys or CPAs are filling the application and we want the IRS to communicate with them directly.
  8. Was a person who is not one of your officers...: No Presumably, nobody is getting paid to help us fill out this application
  9. Organization’s website, e-mail: http://hacdc.org [email protected]
  10. Certain organizations are not required to file: No We will be required to fill out an 990
  11. Date incorporated if a corporation...: 03/25/08 Wow, we missed our anniversary party. This was the date we were officially incorporated in the District of Columbia. You can see our registration information here
  12. Were you formed under the laws of a foreign country?: No

Part II : Organizational Structure

We are a Not for Profit corporation organized in the District of Columbia, organized specifically to become a 501(c)(3).

  1. Are you a corporation?: Yes Tim should have our original articles of incorporation
  2. Are you a limited liability company: No
  3. Are you an unincorporated association?: No
  4. Are you a trust?: No
  5. Have you adopted bylaws?: Yes Note: We should complete all proposed bylaws amendments before submitting this application.

Part III : Required Provisions in Your Organizing Document

We have all the required language in our Articles of Incorporation

  1. Section 501(c)(3) requires that your organizing document state your exempt purpose(s)...: Yes Third Article
  2. Section 501(c)(3) requires that upon dissolution of your organization, your remaining assets...: Yes Sixth Article

Part IV: Narrative Description of Your Activities

This is the part of the application that will require the most discussion among our members. We may choose to attach our Annual Report, which we should prepare before submitting the application. In addition to a narrative of projects we're working on and the general nature of the space, what we're doing and what we plan to do, the Annual Report should be professional looking and serve as an attractive promotional device for HacDC. Here's a good example of an Annual Report from the Carnegie Foundation

Instructions from the application

Using an attachment, describe your past, present, and planned activities in a narrative. If you believe that you have already provided some of this information in response to other parts of this application, you may summarize that information here and refer to the specific parts of the application for supporting details. You may also attach representative copies of newsletters, brochures, or similar documents for supporting details to this narrative. Remember that if this application is approved, it will be open for public inspection. Therefore, your narrative description of activities should be thorough and accurate. Refer to the instructions for information that must be included in your description.

Instructions from the form instructions

For each past, present, or planned activity, include information that answers the following questions:

  • What is the activity?
  • Who conducts the activity?
  • When is the activity conducted?
  • Where is the activity conducted?
  • How does the activity further your exempt purposes?
  • What percentage of your total time is dedicated to the activity?
  • How is the activity funded?
  • List any alternate names under which you operate

If you have a website, you may attach a paper copy of to support your narrative description of activities

Sample Activity: Microcontroller Mondays

Note: This is by no means complete, this is just to give an example of a good description of the activity. The same information may be presented in a less structured/more narrative form, as long as the questions are answered.

  • Microcontroller Mondays is a weekly gathering of those interested in the pursuit of microcontroller-driven devices, their designa nd theory. The event is open to the public, designed for all skill levels and serves as one of the organization's primary "entry points" for involvement.
  • The activity is conducted by volunteer members of HacDC
  • The activity is conducted most Monday nights
  • The activity is conducted at HacDC's laboratory space
  • The activity furthers the following exempt purposes
    • Charitable: The activity is free and open to the public. HacDC's equipment, meeting space and some consumables are made available to all participants. Other non-profit organizations and those pursuing charitable activities use the weekly meetup to learn more about microcontrollers and other electronic technology as well as network with those who have expertise and are willing to apply that expertise to relevant charitable work.
    • Educational: The activity's primary aim is information exchange and mentorship on the science of microcontroller design and theory. Experts and those well-versed in the technology share information with each other and mentor those with little to no experience with the technology. Often, a potential hobbyist will bring a project they cannot complete to the event to seek advice and mentorship in completing the project and learning techniques and theory to complete more advanced projects or design new ones.
    • Scientific: The activity's secondary aim is to engage with microcontroller and related technology, discover new applications of the technology and test the limits and potentials of existing technology and theory in the field.
  • Approximately 15% of our total volunteer and member hours are dedicated to this activity
  • The meeting space and utilities for the space are funded by members, the equipment is primarily donated or paid through membership dues and donations. Those participating in mentorship and research activities do so as volunteers.

Part V : Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors

HacDC has no paid staff, officers, volunteers, etc. As such, this clause should present no issue to us, though we may want to adopt policies stating under what circumstances someone would be compensated (i.e. a teacher of a class, speaker, etc.)

This clause was expanded in the most recent revision of the application to ferret out organizations formed primarily for the enrichment of the participants. It's common for hobbyists in the field to form their own non-profit to fund their presumably exempt activities as a primary career.

However, the officers will have to attach a list "showing their name, qualifications, average hours worked, and duties."

Note: The officer titles are most likely going to change pending a Bylaws revision.

1a.
Elliot Williams / Coordinator in Chief / 1525 Newton St NW, Washington DC, 20010 / -$0-
(Other officers, etc.)
1b. None
1c. None
2a. Are any of your officers, directors, or trustees related to each other through family or business relationships? If “Yes,” identify the individuals and explain the relationship. No
2b. Do you have a business relationship with any of your officers, directors, or trustees other than through their position as an officer, director, or trustee? If “Yes,” identify the individuals and describe the business relationship with each of your officers, directors, or trustees. No
2c. Are any of your officers, directors, or trustees related to your highest compensated employees or highest compensated independent contractors listed on lines 1b or 1c through family or business relationships? If “Yes,” identify the individuals and explain the relationship. No
3a. For each of your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines 1a, 1b, or 1c, attach a list showing their name, qualifications, average hours worked, and duties. Attached list of qualifications, etc. This is where the officers will have to list their duties, qualifications, etc.
3b. Do any of your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines 1a, 1b, or 1c receive compensation from any other organizations, whether tax exempt or taxable, that are related to you through common control? No This assumes that none of the officers work or have business or other outside interests with the same entities.
4. In establishing the compensation for your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines 1a, 1b, and 1c, the following practices are recommended, although they are not required to obtain exemption. Answer “Yes” to all the practices you use.
4a. Do you or will the individuals that approve compensation arrangements follow a conflict of interest policy? No
4b. Do you or will you approve compensation arrangements in advance of paying compensation? No
4c. Do you or will you document in writing the date and terms of approved compensation arrangements? No