Path: utzoo!utgpu!jarvis.csri.toronto.edu!mailrus!tut.cis.ohio-state.edu!ucbvax!pasteur!helios.ee.lbl.gov!ncis.tis.llnl.gov!mcb
From: mcb@ncis.tis.llnl.gov (Michael C. Berch)
Newsgroups: comp.org.usenix
Subject: Re: Jim Joyce, books, vendor booths, etc.
Summary: Selling on exhibition floor
Message-ID: <270@ncis.tis.llnl.gov>
Date: 30 Jun 89 23:11:06 GMT
References: <15866@vail> <22900004@prisma>
Organization: Lawrence Livermore National Laboratory, Livermore CA
Lines: 33

In article <22900004@prisma> mo@prisma (Mike O'Dell) writes:
> Sales on the exhibition floor are expressly prohibited by the
> IRS in the statutes governing our not-for-profit status.
> Our attorney insists the laws are quite explicit and that the IRS is
> quite diligent in their enforcement, and such things get particular
> scrutiny during the periodic review of not-for-profit status.

I find this rather curious.  Would it be possible to provide a
reference to the IRC or IRS regulations on this, or perhaps post the
attorney's opinion?

A large number of nonprofit organizations sponsor events in which
a sale is held incidental to other activities, for example science
fiction/fantasy and comics conventions where there are dealers'
rooms with retail sales.  Churches, schools, and service organizations
also commonly sponsor sales.

Even if there was such a restriction applying to Usenix, the solution
might be as trivial as setting up a separate corporation that makes an
agreement with the site hotel and sponsors the exhibition.

I think sales would be a good idea at Usenix exhibitions, since
exhibitors would be permitted to market directly to participants;
attendees would be able to obtain items like software, boards, or books 
on the spot, and the Association could undoubtedly raise the price for
exhibtion space, to its (and our!) benefit.  (And Jim Joyce could have
his bookstore on the floor with nobody to cry "foul!")

--
Michael C. Berch  
Member of the California Bar
and Usenix Individual Member
mcb@tis.llnl.gov / uunet!tis.llnl.gov!mcb