GIAC Bulletin
Monday, May 17, 2005
These pages will be updated as information
becomes available between now and June 7.

GIAC Annual Membership Meeting
Page 2

ARTICLES OF INCORPORATION
Proposed Changes

Draft Proposal

Current text:   Article II - Purposes
The cooperative is organized for the purpose of providing access to the Internet and related service.

Further, the cooperative may purchase property from and sell property to members, or to members and other patrons, and perform labor for or render other services to members as allowed for by the cooperative bylaws; however, it shall not deal in products, handle supplies, or provide services for non-members in an amount greater in value than as are handled by it for members.

In furtherance of the foregoing purposes, the cooperative shall have and may exercise all of the rights, powers and privileges now or hereafter conferred upon a cooperative organized under the laws of Maryland. In addition, it may do everything necessary, suitable or proper for the accomplishment of any of its cooperative purposes, in Maryland or elsewhere.

Proposed text:
[Language to be forthcoming from the Legal Committee]

Rationale:
The original Articles do not make clear the fundamental premise that the Cooperative was "organized and operated by community volunteers to help others learn about and access the Internet". Accordingly, the Board of Directors was authorized by the Membership in June, 1998, to re-draft the Articles as needed to clarify GIAC's long-standing mission and to better support GIAC's planned application for tax-exempt status as a charitable and educational organization within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986 and the Regulations thereunder.

Why does GIAC seek tax-exempt status?

  • To eliminate corporate income taxes due to Maryland and Federal tax authorities. Currently, income taxes are minimized by carefully managing GIAC annual donations and other expenses to exceed annual revenues.

  • More importantly, to support tax-deductible donations of funds, equipment, and other resources to GIAC from individuals and businesses, with the goal of greatly expanding the scope of GIAC services to the community.

Upon finalization of proposed new language by the Legal Committee, the modified text of the Articles will be distributed to the Membership for approval by electronic ballot. If approved by the Membership, the modified Articles will be refiled with the State of Maryland. If accepted by Maryland, the modified Articles will then be used to support an application to the Internal Revenue service for 501(c)(3) tax-exempt status.


[Prev] [Next]
 

    


| Feedback | Home | Top |
//www.greenbelt.com/giac/bulletin.htm     Updated 6/1/05