[Foundation-l] bylaws (second call)

[Jeffrey V. Merkey]

Ray Saintonge wrote:

>Jeffrey V. Merkey wrote:
>
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>>Ray Saintonge wrote:
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>>>The one characteristic that is unique to a charitable foundation is that 
>>>it distributes funds to others, and does not primarily perform the 
>>>charitable works itself.  In Canada charitable designation is a federal 
>>>matter, and is in addition to whatever is done to constitute the 
>>>organization.  It may be based on formal incorporation, an irrevocable 
>>>trust or an unincorporated organization.  
>>>
>>>      
>>>
>>Churches are non-profits in the US as well and can use the funds for 
>>internal expenses. In fact, most religious organizations don't 
>>distribute monies at all
>>and they are all consumed in-house in programs supporting their 
>>organizations . They have whatever rules they wish for members and they
>>are not regulated. Our Corporation Sole by laws are a single page and 
>>simply state the corporation has the rights to acquire assets and real 
>>property
>>and receive funds and dispose of them how it wishes. It varies state by 
>>state, but Utah is pretty open on how non-profits can operate. There just
>>cannot be and co-mingling of personal funds with non-profit monies.
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>To avoid a misunderstanding there is a distinction made in Canadian law 
>between charitable foundation and charitable organization.  What you 
>describe is more characteristic of a charitable organization.
>
>Ec
>
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In most US States, they can operate just about any way they want (except 
they cannot divert or co-mingle personal monies). There are Corporation 
Soles and Non-Profit Corporations. What you name them doesn't matter. 
The IRS and most states stopped granting Corporation Sole status to new 
entities about 2004 due to a wave of tax fraud that swept the US with 
individuals creating Corporation Soles and diverting personal assets to 
dodge Income Tax, but some states still allow them for legitimate 
organizations. Utah banned any new ones after 2004. Ours was formed in 
2001 so we still have it. One nice thing about a Corporation Sole is you 
are not required to ever file an annual report in Utah -- ever.

Jeff