ECA tax filing non for profit

[ECA]

Hi All just wanted to disclose that the official paperwork has been filed and is just waiting final approval.

[FONT="]The ECA has submitted the articles of incorporation as a 501[/FONT][/COLOR][COLOR=black][FONT="](c)(6) —Non for profit filing – category: Business Leagues, Chambers of Commerce, Real Estate Boards, etc.[/FONT]

 

[Kate]

Thanks for the info.

Does that mean that there are guidelines for how the organisation is structured, who can be members and how directors etc are elected?

 

[ECA]

Thanks for the info.

Does that mean that there are guidelines for how the organiaation is structured, who can be members and how directors etc are elected?

The guidelines for membership are being written at the moment but they will be very detailed...officially there are no members yet as the guidelines for application and approval have not been completed. Once they are, a full application and approval process..... will happen period.

There are already bi laws in place. And a portion of the board has been elected. Once the full board has been elected we will make a post disclosing their names.

Once members have made it through the application process and paid their first dues we will add a sticky thread here with an ongoing updated list of all supplier and manufacturer members.

 

[Kate]

What I don't really understand is that you charge membership fees and are made up of vested interests but you say you're a charity. That would be illegal in the UK and you wouldn't be able to claim non profit status.

In the UK a non profit organisation is made up of it's members who elect a management committee when necessary. In turn the management committee employs staff to take on the day to day running of things, again if necessary. You have gathered a group of vested interests, made a management group and are now seeking a membership and donations from people who have been ineligible to join in decision making or vote.

I'm just a bit confused at how you can be a non profit really, you sound more like a club or trade body.

Anyway, good luck with it.

 

[ECA]

What I don't really understand is that you charge membership fees and are made up of vested interests but you say you're a charity. That would be illegal in the UK and you wouldn't be able to claim non profit status.

In the UK a non profit organisation is made up of it's members who elect a management committee when necessary. In turn the management committee employs staff to take on the day to day running of things, again if necessary.

I'm just a bit confused at how you can be a non profit really, you sound more like a club or trade body.

Anyway, good luck with it.

Hmmm well i am not sure anyone even understands all the tax laws even in their own country LOL!

I am not sure how it relates to the UK. All i can say is no one on the board is taking a salary paid by the ECA. The ECA is not selling anything for profit. It is a trade association under the 501c6 that is not for profit. We will however except donations and will be collecting membership dues to pay fo incured expenses... which will be limitless... IE paid staff, marketing, PR, ad campaings, lobbying firm, social groups, mailers, gifts to members like bumper stickers-tshirts-hats....Legal retainers etc....

The NRA is actually a similar entity but a differnt filing for a frame of reference.

The NRA has filied as a 501c3 category - Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations

Again the ECA is a 501c6 Business Leagues, Chambers of Commerce, Real Estate Boards, etc


here is the wiki on the differences in the tax filings. http://en.wikipedia.org/wiki/501(c)

 

[Avid]

What I don't really understand is that you charge membership fees and are made up of vested interests but you say you're a charity. That would be illegal in the UK and you wouldn't be able to claim non profit status.

In the UK a non profit organisation is made up of it's members who elect a management committee when necessary. In turn the management committee employs staff to take on the day to day running of things, again if necessary. You have gathered a group of vested interests, made a management group and are now seeking a membership and donations from people who have been ineligible to join in decision making or vote.

I'm just a bit confused at how you can be a non profit really, you sound more like a club or trade body.

Anyway, good luck with it.

Non-profit organizations | LII / Legal Information Institute

 

[Kate]

Thanks for the information, appreciated

 

[CJsKee]

Is the E Cig Assoc "Non Profit" or "Not for Profit"? I do know there is a difference but not sure exactly what it is. I used to work for a credit union and it was a "not for profit" organization.

 

[TDM]

What I don't really understand is that you charge membership fees and are made up of vested interests but you say you're a charity. That would be illegal in the UK and you wouldn't be able to claim non profit status.

Good for ECA they are not in the UK so everything is OK in the USA

 

[Oldnamenomore]

Non profit =! charity it just means that the money going into the organization isn't given as bonus and such(very primitive explanation).

Non profit - A group, often a corporation, organized for purposes other than generating profits; for example, a charitable, educational, religious, or scientific organization. Certification by the IRS or Franchise Tax Board is a common attribute.

A non-profit organization (abbreviated "NPO", also "not-for-profit") is a legally constituted organization whose objective is to support or engage in activities of public or private interest without any commercial or monetary profit

definitions I got from googling define: non profit

 

[Oldnamenomore]

them filing as non profit is good that means they can't take the money and run(unless they get some good tax lawyers ) and that all the money will be going towards the cause in some way like the examples he gave above about lawyers and pr people and so forth.

 

[Oldnamenomore]

Is the E Cig Assoc "Non Profit" or "Not for Profit"? I do know there is a difference but not sure exactly what it is. I used to work for a credit union and it was a "not for profit" organization.

i believe the words are interchangeable

 

[JustJulie]

Now, I could be all wet since I haven't worked with not-for-profits for more than a decade, but . . .

I think the distinction folks are struggling with is the difference between tax exempt and tax deductible.

501(c)(3) organizations are generally tax exempt (meaning the organization itself doesn't pay taxes) as well as tax deductible (meaning contributions to the organization are deductible by individuals on their individual income tax returns).

501(c)(6) organizations, on the other hand, are generally tax exempt but not necessarily tax deductible. I believe I'm correct in saying that if I pay money to a 501(c)(6) as part of the ordinary course of my business, then that would be deductible. However, if I'm an individual just forking over money because I believe in the cause, I don't believe I get to deduct that contribution.

Like I said, it's been years since I've looked at this, and my memory is foggy at best, but my guess is that regular individuals (not suppliers) who contribute to the ECA probably won't be able to get a tax deduction.

I'm curious, though, as to whether ECA thinks that contributions by "regular" folks will be deductible. For me, I don't really care. I'll contribute regardless. But for others, it might be an issue.

 

[CJsKee]

i believe the words are interchangeable

Nope, they're two separate types of entities. I think JustJulie may be correct regarding whether contributions are deductible or not. The way the credit union worked was they had to have operating income, but anything over and above was returned to the "members" (same as a bank's "customers") in dividends.

Just out of curiosity I'd like to know how ECA is structured ... the thread reads "non for profit"

 

[ECA]

Hope this helps clarify:

Non Profit, not for profit, non for profit: are all the same thing just different ways to say it.

a 501c6 and a 501c3 are both non profits, but with different rules and legalities that apply.

The ECA consumer memberships and any donations will not be tax deductible. But they will help to ensure that you can buy your ecigs in a world more knowledgeable about the product!

edit: see this link for precise info http://www.irs.gov/charities/nonprofits/article/0,,id=163437,00.html


And again board members and other members are receiving none of that money. It is going to buy the things/services previously stated to get our message out!

 

[esmok-e]

I'm willing to volunteer as much as the next person but...

I might sound like the folks who come after me here by saying, so far I see:

A website (albeit with great intent and information - I assume done by volunteers, and I would like to assume that) doesn't cost more than around $20-$100 or so a year and some video tape that cost less than $3.

A mission that must be taken up by people willing to commit their time and resources, for sure.

I assume that the Congressmen are NOT being paid, we don't want that, do we?

And finally there is something called the Clayton Act by the Federal Trade Commission which is currently nipping at Google and Microsoft for sitting on the same board. Even with their expensive lawyers (who probably care less about missions and causes) the FTC is citing the Clayton Act with them for being members of the same association and may charge them in an Anti-Trust action for unfair competition.

501s can usually fly under IRS radar, but when a complaint is made, well...

So those are the expensive things (lawyers) and maybe paid for media time and space. I might be wrong but I don't think that's necessary. Will it be sponsored advertising or a public service message? "The Electronic Cigarette: A Breath of Hope", etc... I'm willing to donate my whole ad campaign to the cause if anyone thinks it's useful. I have 15 ready now.

Salmon hit a home run and touched all the bases. People of good-will and plain common sense will get it. YouTube is free. The press can do the rest.
That video is worth ten $300,000 infomercials and cost less than $3 in actual material expenses if everyone pitched in their time.

It's up to all of us, members of an ECA or not.

Right now the results are good, but it's the future of this idea that has me worried.

So far I got $103 tops for a knockout video and usable website, plus maybe tax. Save the receipts, some other 3 letter acronyms may want to look at them.

I think it's mostly about good-will, sweat equity and everyone here spreading the word outside.

We have people on this forum that are willing to do polls, make documentaries, write music, send emails, do interviews and have volunteered the use of their resources to do it.

I must be missing something. I must not know enough about it.

Does anyone know enough about it to fill me in, or am I just clueless?

 

[iiimathman24iii]

Thanks for all this info... it is nice to see a community so devoted to a cause that is no doubt prolonging, if not saving lives... i have been lurking around this forum for a few months now as a guest and recently registered... the information found here was soooo helpful in making my decision to switch to e-cigs...

my question is this... you mentioned a lobbying firm... does this imply that the ECA is going to actually have lobbyists who attempt to counter any lobbying done by the powerful lobbyists that roll with big tobacco?.... if so i think this may get a bit dangerous... a powerhouse like the tobacco industry who has managed to stay alive even when their product has been PROVEN to cause cancer does not seem like the group you want to go up against when it comes to "handing" out money...

i could be terribly misinformed about how lobbying works but i just wanted to bring this up and see if anyone had thought about this aspect of things...

also, since i first began reading on this forum I have been arguing with a friend who is in pharmaceuticals about the safety of e-cigs... his only real argument was the lack of clinical studies... ie. you don't really know how much nic you are getting at any given time. i think early money that the ECA takes in would be best invested in the arrangement and performance of these "clinical trials"... i would have to think that a subject that is already getting a decent amount of media attention (e-cigs) would be ripe material for a school like UCLA or even a smaller school... but i am faaaar from an expert on these things and im sure you guys will cover all of your bases... thats just this newbs 2 cents worth

Thanks again

PEACE

 

[Oldnamenomore]

esmoke you realize they are hiring lawyers and PR people right? They aren't doing some low budget project they are going at this thing full-force.

 

[esmok-e]

esmoke you realize they are hiring lawyers and PR people right? They aren't doing some low budget project they are going at this thing full-force.

Thanks for volunteering.

 

[LaceyUnderall]

esmoke-e : Policy Impact