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Originally Posted by Diva
The 'concept' was basically derived from KCBS not being able to charge the extra funds themselves due to their tax status.....correct??? [SNIP]
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It is a common misperception that non-profit organization means no-revenues. The bottom line for non-profits is that they return as much of their revenues as possible as benefits for their constituents. Many non-profits do have funds left over at the end of their tax period and they do pay a premium tax rate on those 'excess funds' - so the incentive to return the money in benefits to the members they serve is great.
But the bottom line is that what a non-profit charges (or generates) is not restricted by their taxation status. That may be more restricted by their charter . . . but not their tax status.
Quote:
Originally Posted by Diva
Sooooo, since KCBS couldn't charge the funds and DEMAND that any team cooking a KCBS sanctioned contest WITHOUT being a member doesn't pan with the tax man, they decided to 'put it on the organizers'. Personally, the knee jerk reactions are a bit tiresome. How about the Board get off their respective asses and actually do something productive THEMSELVES instead of trying to pass the buck?
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It's up to the organization's charters and rules - not the tax man. I agree that the BOD needs to accept their responsibility of growing the organization, but the bottom line of the KCBS charter is to promote BBQ and fun. I think the KCBS has done a good job of at least that.