The Board began the process of applying for tax exempt status with the IRS last year. The IRS agent reviewing our application had one problem with our submission. In reviewing our provisions for dissolution of the Association, he stated that law prohibits money provided by members to be returned members. In the event of the dissolution of the Association, it would be appropriate for any remaining funds to be donated to another non‐profit organization determined at the time of dissolution.
The following modification of our by‐laws is recommended by our Board:
- 9.03 Distribution upon Withdrawal of Dissolution.
In the event of dissolution of the Association or withdrawal of any group of more than fifty (50) members at one time (having given written notice of such Intent to withdraw as a group and listing the reason for withdrawal, the name and address of each withdrawing member and indicating the number of consecutive years of active membership of each withdrawing member) the accumulated dues fund shall be divided by the total number of consecutive years active membership of all currentrs and each withdrawing members shall be paid an amount equal to the number of his consecutive years of active membership times the quotient of the above division .
Rewritten as:
- 9.03 Distribution upon Withdrawal of Dissolution.
In the event of dissolution of the Association, the accumulated funds shall be donated to another similar non‐profit organization.
2015 paid members are encouraged to attend the Board meeting on April 6 at the pool house at 3030 Adolph at 7pm to vote on this suggested revision. Time is critical to avoid additional IRS fees of $800.