Path: utzoo!utgpu!jarvis.csri.toronto.edu!rutgers!sun-barr!decwrl!decvax!zinn!ditka!infopro!david
From: david@infopro.UUCP (David Fiedler)
Newsgroups: comp.org.usenix
Subject: Re: Jim Joyce, books, vendor booths, etc.
Message-ID: <202@infopro.UUCP>
Date: 1 Jul 89 18:16:36 GMT
References: <270@ncis.tis.llnl.gov>
Organization: InfoPro Systems, PO Box 220, Rescue CA 95672
Lines: 52

From article <270@ncis.tis.llnl.gov>, by mcb@ncis.tis.llnl.gov (Michael C. Berch):
> 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.
> 
> 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.

My reading of the above causes me to infer that Usenix is indeed not just
a simple "non-profit" organization, but also a 501(c)3 educational
organization with special tax privileges as well.
However, a note in "login" specifies that it is simply a not-for-profit
organization incorporated in Delaware. Could someone explain what the
actual status is, since the ramifications are quite different?

I have run a simple (i.e.  not 501(c)3) not-for-profit corporation in 
New York, and no sales whatsoever were prohibited by New York.  The IRS 
couldn't care less, as long as we paid our taxes on any profits we made 
(which were none).  

It occurs to me that there would be something a bit strange in allowing 
a 501(c)3 organization to run a trade show exhibit, where they charge 
exhibitors for floor space at rates close to those of commercial, 
profit-making companies, thereby having the government subsidize what is 
essentially competition to these commercial firms.  There is a flap 
going on now, in fact, about university media departments bidding on 
commercial video productions for the same reason.  

Note that I am not flaming Usenix!!  I love Usenix and have supported 
its activities in various ways for many years.  I am just wondering what 
the status is.  I am especially wondering how any set of rules (even 
from the IRS :-) can allow an organization to run a trade exhibit, 
(where people are there for the express purpose of seeing hardware and 
software with the possible intent of purchase) and not allow them to 
actually make purchases.  If the organization itself is allowed to make 
money by renting the space, what does that possibly have to do with 
exhibitors selling products, since the organization doesn't get a "cut" 
of the money?  

/usr/group runs UniForum, they allow their exhibitors to sell products
on the floor, and they are supposedly also a non-profit organization. I
wonder what the difference is.
-- 
David Fiedler {ames,attmail,hoptoad,pyramid}!infopro!david
USMail: InfoPro Systems, PO Box 220, Rescue CA 95672 Phone: 916/677-5870
"Please, Captain...not in front of the Klingons!"