[openssl-users] good riddance to PayPal
Johann v. Preußen
jvp at forthepolls.org
Wed May 11 22:04:35 UTC 2016
i am sorry if i have wasted your time on non-profit formation and taxation
issues when i put my CPA hat on. i originally meant to point out some banking
alternatives and how to make certain you could qualify and control such with the
non-profit formation as a means and California as a low-cost conduit.
if you are already set up in DE, you can take advantage of the free in-/out-ACH,
web API's, and mass-pay at dwolla (tied to any existing bank account(s) you have
now or in the future) and internationally-scoped banking through Citi or some
such. i suggested Ally Bank only because they offer free services: in-bound
SWIFT, in-/out-bound domestic US wire transfers, and checking. also, their $10
fee for out-bound SWIFT is the lowest i know of for non-analysis (low
running-balance) checking acct's.
Johann v. Preußen
On 2016.May.11 14:15, Steve Marquess wrote:
> On 05/11/2016 04:56 PM, Johann v. Preußen wrote:
>> i am somewhat surprised your attorneys have not mentioned the most
>> simplistic solution. if the sole purpose for incorporating is to
>> implement banking, there is actually no need to register for an IRS
>> letter. if you satisfy the state regulations and obtain an EIN you are
>> fine. the IRS letter does give safe harbor to donors that the amounts
>> given are federally deductible. of course, to your major donors who
>> provide moneys under grants and/or contracts there is no practical
>> tax-wise difference between "gift" and "business expense".
> State taxation isn't a problem; OpenSSL Software Foundation is
> incorporated in Delaware which has no tax. U.S. tax deductibility is
> largely irrelevant to our donors, most of which are outside the U.S.
>> all of that said, there are plenty of examples of open-source org's that
>> are already IRS-recognized under IRC 501(c)(3) such as Software in the
>> Public Interest, Apache, Eclipse Foundation, Open Source Initiative,
>> Linux Foundation, Software Freedom Conservancy, and many more. i have
>> noticed, though, what your attorneys have related to you in that the IRS
>> has recently seemed to turn a blind eye to the "public benefit" clause
>> when it comes to open-source software. this is a trend of just a couple
>> of years and turns from the path they had followed for decades in
>> granting acceptance. if someone took the time to copy/edit one of these
>> org's by-laws and submitted to the IRS they would be hard-pressed to
>> deny based on the facts and would have to reveal a decidedly
>> philosophical reason which would be wide open to appeal. naturally, i
>> have no idea if any of this extra effort would yield anything meaningful
>> to openssl. ...
> Be my guest and go for it, but I do have a good idea if it would yield
> anything meaningful because I've been working this issue in detail for a
> couple of years now. Our attorneys (we've checked with several, and with
> ones experienced with 501(c)) don't see a viable path worth the
> substantial investment it would cost us.
> -Steve M.
-------------- next part --------------
A non-text attachment was scrubbed...
Size: 3825 bytes
Desc: S/MIME Cryptographic Signature
More information about the openssl-users