Internet Access (The Lack Thereof) At ITEC (was Re: regarding "just plain works" as a goal)

[Leo Mauler]

--- On Wed, 10/8/08, Billy Crook <billycrook at gmail.com> wrote:

> On Wed, Oct 8, 2008 at 15:13, Leo Mauler
> <webgiant at yahoo.com> wrote:

> > BTW, wouldn't calling KCLUG a non-profit be
> > untruthful?
> 
> No.  It would not.  Show me what profit we make.  
> Calling it a 501(c)3 would be untruthful.

I'm sorry, but this erroneous opinion of yours needs to be pointed out publicly so that others can realize exactly where the law regulates the use of the word "non-profit."

In the original message, you wrote:

> On Wed, 10/8/08, Billy Crook <billycrook at gmail.com> 
> wrote:
>
> > On Tue, Oct 7, 2008 at 16:46, Leo Mauler
> > <webgiant at yahoo.com> wrote:
> > 
> > > Secondly, every year for the past three years 
> > > there hasn't been reliable free wireless 
> > > Internet on the ITEC Exhibitor floor.  This 
> > > means that the option of showing people the 
> > > Internet on the demo Linux PC will most likely
> > > not be available, which prevents people from 
> > > seeing the "blinkenlights" Internet (for good 
> > > or bad).
> > 
> > Bring a wire.  Find a hole to stick it in.  
> > Convention halls usually have ethernet.  I 
> > guarantee there's not going to be hundreds of 
> > people there, and no internet.  Not in 2008.  

And the part which is vitally important as to why "calling KCLUG a nonprofit" in order to solicit donations could be a problem:

> > If they want to charge, bring a 300 foot cable, 
> > and a router, and walk around telling other
> > vendors your a nonprofit, and beg for bandwidth.
> > If you really want it, bring a sign for whoever 
> > agrees that says "we support the KCLUG" for 
> > whoever cooperates.

Claiming to be a nonprofit "because you make no money" is one thing.  Thats free speech.  You're referring to your lack of profit and having a good laugh without affecting anyone else.

Claiming to be a nonprofit and then **using that status to ask for donations** is another matter entirely, may constitute fraud if your organization is not a recognized IRS 501(c) organization (legally the term "nonprofit" only applies to 501(c) organizations, and in a strict sense only to 501(c)(3) organizations) and requires considerably more paperwork (state and federal) than just "bringing a sign".  It may not be an outright lie, but it is bending the truth just enough to constitute fraud.  The organization which gave us the Internet access may assume some form of tax deduction for the "gift", since we referred to ourselves as a "nonprofit", and if denied said tax deduction, could conceivably sue for fraudulent charitable solicitations.

And then there's the matter of filing the state taxes on the donated Internet connection, since KCLUG is not exempt from taxes on income.  Who here wants to volunteer?  The Kansas Attorney General would be only too happy to step in and find the person who went around fraudulently claiming KCLUG was a nonprofit organization and hold that person personally responsible, if KCLUG was discovered to be the disorganization that it is.  The cost of the Internet could be rather expensive, depending on the organization which "donates" it to us.

Booth electricity is agreed-to as part of the booth itself, as is the booth, and the booth is given "free", so it technically has no monetary value and thus no taxation rules apply.