[Businessmtg] Topic: Incorporation?

[logmark at comcast.net]

Biz-Pals, 



Ah, the chores are finally done... 



Okay, here we go.... 



A few months back I, as ASP Treasurer, got a notice 

from PayPal that our account was frozen. Apparently 

the new regulations which grew out of 9/11's aftermath 

forced financial institutions to review their accounts 

and see to it that they were in order. 



PayPal, in reviewing our account recognized that we 

were not a business, but what ought be classified as 

a non-profit. Details aside, they froze our account 

until we provide them with additional information above 

what was provided when I opened the account. 



It forces us to either go the incorporation route, or 

to have our account(s) owned by an individual and not 

the group. Truth be told everything about us fits 

perfectly within the non-profit category, so they 

aren't off base. 



Next, it is past time to think about rotating the 

Treasury position. That brought me and others around 

to thinking about the logistics of opening up a new 

bank account in the locale of the next treasurer. I 

asked our bank about the new regulations and how they 

would affect opening new accounts and was told that 

were we to open a new account these days we'd have 

to provide articles of incorporation or have the 

account owned by an individual and tied to their Social 

Security number. An EIN doesn't cut it any more. 



So no longer can our current or future banks bend the 

rules or turn a blind eye to the details as has been done 

in the past. Things are much stricter these days. 



Fortunately for us I had just transferred our PayPal 

balance to our bank before the account was frozen. Though 

it is not likely, if the bank were to freeze our account 

we'd be in a real pickle. 



Now filing for non-profit status isn't all that difficult. 

There would be some payments necessary for whatever legal 

contributions were necessary. Non-profits are State-based 

so we'd have to decide on an official home State (I believe,) 

or do we have to come up with something new every time the 

treasury rotates to a new geographical location? Questions 

need answered. Legal advice will be needed. 



We'd have to decide which current service positions would 

fill which officer positions in the corporation. If I'm 

not mistaken we'd also need official By-Laws written up 

and agreed to. Probably other stuff I haven't thought of 

too. 



A last thought. There are probably a hundred different 

work-arounds that various groups and entities or groups 

have used in the past in one State or another. The new 

strict oversight of banks is not likely to permit it any more. 

We are an international on-line group of a few hundred 

kindred souls. We are an exact fit for non-profit status. 

I, as Treasurer, can not make this decision. The group 

[The Business Committee] must take this under discussion 

from which will come to a group consensus on the future 

identity and  direction of our organization. 



So let's talk about this for a week or so. Anyone out there 

with expertise to lend? Anyone with legal background or 

in-program legal contacts? Etc., etc. 



Please keep in mind that we are looking for direction. Were 

we to decide to explore incorporation we'll then need to do 

the footwork to find out what's required and decide again 

if any specific route meets with the group's approval. Only 

then could official actions begin. Ideas, discussion, decision, 

action.... 



I'd dearly like to have the entire process conclude by, say, 

the end of September. That would give us three months to 

get something done. Let's get cracking.... 



Topic Phrase: 



Should ASP work toward incorporation as a non-profit organization? 



Hugs, 

Jerry H., 

ASP Treasurer