[Foundation-l] Wikimedia Pennsylvania

[Anthony]

On 7/12/07, Robert Horning <robert_horning at netzero.net> wrote:
> Anthony wrote:
> >
> > Well, as I said before, you don't need to incorporate in order to be a
> > tax-exempt organization.  And while I don't know PA state tax law
> > offhand I'm not sure it's worth going through the WMF just so you can
> > get a sales tax exemption on a few pizzas every week.  Is the WMF even
> > registered with the state of Pennsylvania?  If not the paperwork would
> > probably be just as bad.
> >
> >
> It is not just for a bunch of pizzas here, and there are some legal
> liabilities that simply put are something that one individual simply
> should not have to bear the brunt of dealing with directly.  Aka the
> "chair" of any such group taking full legal liability for the actions of
> the group.
>
> We are talking organizing fund raisers, local college chapters,
> distributing Wikimedia content in various formats, and more.  If it was
> just for buying a pizza once a month, I would have to agree it wouldn't
> be worth the effort here, but you are missing the potential of what a
> group like this could offer for the WMF as well.

By all means if you have reason to incorporate you should do so.  But
tax exemption doesn't seem to be a reason.  I just checked out the
sales tax exemption process for Pennsylvania.  They don't require
incorporation, and they don't require an IRS determination letter.

Furthermore, the simple act of incorporation is relatively inexpensive
once you get beyond just meeting for pizza.  What really costs money
are the administrative costs, and these costs are probably reduced by
having separate legal entities.