ATA 501 c 3 Why?

Why would the ATA choose to be a 501 C 3? I have read the posts but still no one has given a reason.

 

That is a IRS Tax exempt, non profit Organization, CORP.

GB.....................DLS

 

You told me what it its....got that. Why is the question.

 

The question ... "Why would the ATA choose to be a 501 C 3?" ... could best be answered by those who dissolved the old one, and started the new one.

A 'best guess' would be bad advice and/or ignorance. A well established old "501 C 3" had the chance to evolve with, and change, to comply with laws that govern them. As laws change you would be given time for compliance. A 'new' one, "501 C 3", is bound by the current laws at the time they start. It appears those who made the decisions tried to take a century old "rule book/bylaws", with past operations "using a 1930's blueprint", and make it work in a new day under current State and Federal laws.

You could compare it to remodeling a house .... it can stay in it's current state, built to codes at the time of construction, until you start current work on it. Then, in most places, the house has to comply with all current building codes. And you could guess the result of "using a 1930's blueprint" on a current construction.

You give-up/lose anything that may have been "grandfathered in" when you dissolve something, it does not 'carry-over' to the new.

They pay themselves well for a "charity", but are trying to operate far above their pay-grade.

 

I requested a Profit and loss statement (financial statement) about 2 weeks ago from the ATA, so far nothing as in no response at all .. If you have nothing to hide, hide nothing which does not seem to be the case ... WPT ... (YAC) ...

 

If you are a Life Member you are entitled to a Financial Statements, you can get them for the past several years if you like.
I personally would like the one that has the Check amounts and to whom.
The spread sheet details.

Gary Bryant.......................Dr.longshot

 

I have that 1982 financial report from the ATA around here in a box someplace.

Gary Bryant...........................Dr.longshot

 

I have been a Life Member since 1975, used to get Financials statements on a regular basis but that all stopped several years ago ... I got a feeling there are many questionable checks made out, obviously they do not want people to know whats going on or they would not be keeping things hidden ... WPT ... (YAC) ...

 

Cole,

I think the answer to your question is to enable contributions to the organization to be tax deductible to the donors. Following the lead of NSSA/NSCA.

 

If the organization generates any income, it would have to pay taxes on it rather than being able to take that income and use it to advance the goals of the organization. Are you sure it's a 501(c)(3) and not a 501(c)(4)? The former are usually charities, religious groups, or science/educational foundations while the latter are usually civic organizations, homeowners' associations, and organizations for promoting sports (like the NRA).

 

Not sure what you mean by that first sentence dolby? Yes, the ATA is a 501(c)(3). Contributions to the ATA qualify as charitable donations. Yes, it would have to pay taxes if it generated certain types of income, called unrelated business taxable income (UBTI). Income from trapshooting related programs is not UBTI and is exempt, since that is the ATA's exempt purpose. The "old" ATA was never a 501(c)(3), it was always 501(c)(7), which is really about the worst type of tax exempt section to qualify under because of its severe restrictions on sources of income. I don't believe it has been dissolved yet, and remains in existence until related environmental concerns are resolved in Vandalia.

I believe the NRA is a c7. NSSA/NSCA is a c3. NCAA is a c3 (but they are dropping that exemption). Most small clubs are c7, some c4, and fewer still somehow managed to get c3 applied to them, but that is a pretty far-fetched claim for most clubs as we know them.

 

Many times a club will operate under two different tax codes to comply with tax status laws to retain a (c) 3 status , also under two different Corporations (if incorporated) or two different names ... They use one for registered shoots and the other for incidentals and non registered income ... Its legal, been there, done that ... WPT ... (YAC) ...

 

Well ask for their "cash disbursements journal".

 

As in"Signature Sponsor" ?