i am somewhat surprised your attorneys have not mentioned the most simplistic solution. if the sole purpose for incorporating is to implement banking, there is actually no need to register for an IRS letter. if you satisfy the state regulations and obtain an EIN you are fine. the IRS letter does give safe harbor to donors that the amounts given are federally deductible. of course, to your major donors who provide moneys under grants and/or contracts there is no practical tax-wise difference between "gift" and "business expense". if you would like the specifics re CA, here are the applicable links granting freedom from CA taxation and franchise fees and establishing subsequent Federal tax-filing status: *the state equivalent of IRC 501(c)(3):* https://www.ftb.ca.gov/businesses/Exempt_organizations/Types_of_Exemptions.shtml#d23701 *your qualifications under "Scientific" endeavors:* https://www.ftb.ca.gov/businesses/Exempt_organizations/Types_of_Exemptions.shtml#Scientific *your qualifications under "Educational" endeavors:* https://www.ftb.ca.gov/businesses/Exempt_organizations/Types_of_Exemptions.shtml#Educational_org all of that said, there are plenty of examples of open-source org's that are already IRS-recognized under IRC 501(c)(3) such as Software in the Public Interest, Apache, Eclipse Foundation, Open Source Initiative, Linux Foundation, Software Freedom Conservancy, and many more. i have noticed, though, what your attorneys have related to you in that the IRS has recently seemed to turn a blind eye to the "public benefit" clause when it comes to open-source software. this is a trend of just a couple of years and turns from the path they had followed for decades in granting acceptance. if someone took the time to copy/edit one of these org's by-laws and submitted to the IRS they would be hard-pressed to deny based on the facts and would have to reveal a decidedly philosophical reason which would be wide open to appeal. naturally, i have no idea if any of this extra effort would yield anything meaningful to openssl. certainly, qualifying for non-profit status in CA actually grants you what you really need and does not require any extra efforts. -- Thank you, Johann v. Preu?en On 2016.May.11 13:00, Steve Marquess wrote: > On 05/11/2016 02:46 PM, Johann v. Preu?en wrote: >> Marquess: >> >> your treasury re-alignment might be simplified a bit if you look to an >> on-line-type bank such as Ally Bank. ... > It's a U.S. bank. We already have multiple U.S. bank accounts. > >> you have mentioned server-siting and non-US personnel as control agents >> as somewhat problematic. i might suggest a simple and very low-cost >> means of obviating these concerns. if openssl were to incorporate as a >> type IRS Reg 501(c)(3) it would satisfy US Treasury Reg's and make life >> a lot easier. ... > Yes, it would indeed, and if I had a nickel for each time I've heard > this suggestion I'd had enough beer I'd need never face sobriety again. > > We have pursued 501(c) with several attorneys, all of which have advised > us that our chances of successfully obtaining 501(c)(3) or 501(c)(6) > status are nil. Apparently the IRS does not look kindly on our type of > open source project. > > That is one of the reasons we need to relocate outside of U.S. jurisdiction. > > -Steve M. > -------------- next part -------------- An HTML attachment was scrubbed... URL: <http://mta.openssl.org/pipermail/openssl-users/attachments/20160511/75c21970/attachment.html> -------------- next part -------------- A non-text attachment was scrubbed... Name: smime.p7s Type: application/pkcs7-signature Size: 3825 bytes Desc: S/MIME Cryptographic Signature URL: <http://mta.openssl.org/pipermail/openssl-users/attachments/20160511/75c21970/attachment.bin>
