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Musicians Relief Fund........two years and counting

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#21
Mike, I fully understand where the majority of the funds have gone to.....however this thing has been sitting idle for 2 years now. What gives?

Like I suggested earlier, turn this charity over to someone who can give it the attention it deserves or give people back their money so they can donate it where it will be used to help people. There is no reason one individual should be holding this thing up for two years.
 
#22
BigMikeW said:
Very little money was for the setup of the charity. That money went to Tom and was used for filings.

The rest of the money went to the Mike Fredericks Relief Fund and was all used. No idea where the notion that there was money left over or being held sinc I layed out that it was all used.
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If that is the case then you need to get the filings done ASAP. I don't know how US tax law works, but I bet that the chances of the users claiming deductions for the money donated decreases each year that the charity is not a proper registered charity. If you held this out to be a registered (or soon to be registered) charity for the purposes of soliciting donations, it seems pretty fair to me that you make every possible effort to make it as such as people may have structured their tax affairs around deductible donations.

For the sake of discussion, if I make a donation, I get 40% of it back in tax. If you have sold the charity on the basis that it will be deductible, then by not doing the proper work, you are potentially depriving people of substantial chunks of money who donated to you in good faith. Perhaps you could refund the difference to those who donated based on an average tax rate in the US and then solicit more donations once the deductible status is confirmed.
 
#23
Juniorkimbrough said:
Mike, I fully understand where the majority of the funds have gone to.....however this thing has been sitting idle for 2 years now. What gives?
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I already told you. The filings were made and paid for by Tom. There is a bunch of paperwork and structural things I have to do to proceed. That is the stuff Tom needs. I don't have time right now and am trying to make it happen. But again, my family comes first.

I paid for the website for a year out of my own pocket plus the money I added to get this done.

If I can get this stuff to Tom, it will be me funding it further out of my pocket to get it going. That I can't do right now.
 
#24
Mark Latimour said:
If that is the case then you need to get the filings done ASAP. I don't know how US tax law works, but I bet that the chances of the users claiming deductions for the money donated decreases each year that the charity is not a proper registered charity. If you held this out to be a registered (or soon to be registered) charity for the purposes of soliciting donations, it seems pretty fair to me that you make every possible effort to make it as such as people may have structured their tax affairs around deductible donations.

For the sake of discussion, if I make a donation, I get 40% of it back in tax. If you have sold the charity on the basis that it will be deductible, then by not doing the proper work, you are potentially depriving people of substantial chunks of money who donated to you in good faith. Perhaps you could refund the difference to those who donated based on an average tax rate in the US and then solicit more donations once the deductible status is confirmed.
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Neither myself or Tom ever said that anything would be tax deductible. That isn't possible legally. People including myself gave some money to try and get this started. Those funds were used and exhausted.
 
#25
BigMikeW said:
Neither myself or Tom ever said that anything would be tax deductible. That isn't possible legally. People including myself gave some money to try and get this started. Those funds were used and exhausted.
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:eyebrow:

Maybe I am reading the following incorrectly, but it sure seems like you did say exactly that.

BigMikeW said:
Remember, because we WILL be a 501(c)(3) Charity, all donations of cash and gear are tax deductible and you will receive all necessary documentation so you can write it off of your taxes.
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See this post: http://www.talkbass.com/forum/showpost.php?p=3140958&postcount=1
 
#26
Mark Latimour said:
:eyebrow:

Maybe I am reading the following incorrectly, but it sure seems like you did say exactly that.



See this post: http://www.talkbass.com/forum/showpost.php?p=3140958&postcount=1
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Yep, AFTER we became a 501. Not before. People gave to Mike out of the hearts; no one said that would be tax deductible.

A few gave towards trying to pay for the filings (including me); that too was never said to be tax deductible.

Once we are finally a 501 everything from that point would be tax deductible. Very simple and straight forward. Tom and I even discussed all this.
 
#28
BigMikeW said:
Yep, AFTER we became a 501. Not before. People gave to Mike out of the hearts; no one said that would be tax deductible.

A few gave towards trying to pay for the filings (including me); that too was never said to be tax deductible.

Once we are finally a 501 everything from that point would be tax deductible. Very simple and straight forward. Tom and I even discussed all this.
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Not to put too finer point on it, but because we are talking about other peoples money that was channeled through you, the correct phrasing would have been:

Remember, because we WILL be a 501(c)(3) Charity, all donations of cash and gear will be tax deductible and you will receive all necessary documentation so you can write it off of your taxes.

You used the present tense "are" in that sentence and implied therefore that donations made in the present tense (at the time) were tax deductible. Look, that seems like splitting hairs, I totally agree, but the reality is that people gave you money on the basis of things you posted. At the very least, full and complete accounting of where the money went and how it was used would seem to be reasonable. Further, it would seem to be reasonable that anyone who gave to you on the basis that it would be tax deductible (noting that your statement indicated as such), should be able to get a refund of at least that non-deductible portion that they believed would be deductible. That seems like a pretty fair solution which would seem to remove any complaints people could have. I don't have a bone in this, I am just presenting what seems to me to be the fair compromised position.
 
#29
fenderhutz said:
Uh oh. It that fraud we are having dinner I smell burning?

It seems that 0 funds should have administered to the needy until all of the paperwork was in place. After working for a non profit for years it makes sense.
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You should go back and do your homework. I privately raised money to help Mike Fredericks. That's how this all got started. It was a private endeavor.
 
#38
Allow me to throw the ******** flag right here. I believe in Mike W and think he has done some good work, especially for our friend Mike Fredericks when he was in need. I understand family comes first and concerns there too. However, to just throw it in Tom's lap, while Tom is busy putting out a magazine, and still running a law practice full time, as well as raising two kids of his own....well, that's just BS!
 
#39
cheezewiz said:
Allow me to throw the ******** flag right here. I believe in Mike W and think he has done some good work, especially for our friend Mike Fredericks when he was in need. I understand family comes first and concerns there too. However, to just throw it in Tom's lap, while Tom is busy putting out a magazine, and still running a law practice full time, as well as raising two kids of his own....well, that's just BS!
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Tom and I are the only ones on the filings. He can let someone else do it if he wants. That is his call if he is too busy. I will leave that to him; I can't do it.
 
#40
fenderhutz said:
Does Tom know this yet?
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Mike just e-mailed me.

To be honest, I am somewhat at a loss as to what is the best way to proceed.

Let me tell you all what I know, and maybe we can come up with a joint game plan.

I formed an Ohio not-for-profit corporation, the Muscians Relief and Scholarship Foundation. I had then begun the 501(c)(3) application process with the assistance of a local CPA, but we needed some additional information and paperwork to complete the application. My time and the accountant's time have been donated, but I did receive funds from Mike Winnen to cover the cost of the filing fees.

I don't know of the existence of any other funds.

Looking forward, it seems that we have two main options. 1.) drop this whole effort, or 2.) someone else picks up the ball and runs with it. I am not in a position to be the main driver behind this foundation, but I am still willing to contribute my services (and I think I can talk the accountant into doing the same) if people do wish to see this through to fruition, and if someone is willing to be the main person in charge.

Tom.
 
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