[Businessmtg] Incorporation - EIN etc.

[logmark at comcast.net]

Biz-Pal$, 



Perhaps my introduction wasn't clear enough. 



We have had an EIN for years. We used it to open our current 

bank account over four years ago. 



This problem came up when PayPal , who I presumed was following the new banking regulations put in place since the Twin Towers disaster (I gave up trying to talk to a real person since our account was frozen and in order to unfreeze the darn thing I had to 

a) provide Articles of Incorporation as a 501-3c (or whatever 

   the non-profit designation is, ) or 

b) open a new account under the Social Security Number of 

   an individual (me.) 

c) There is no option c..... 



So I approached our bank (and my personal bank for a couple of decades) and was told that under current regulations they would not be permitted to open a new account for a group like us unless we 

a) provide Articles of Incorporation as a non-profit, or 

b) open up a new account under the Social Security Number of 

   an individual (me.) 

c) There is no option c.... 



So I stopped my research with a clear understanding of the current requirements for opening new accounts from our two financial institutions. 



If someone here is an expert beyond the knowledge base of our two financial institutions and can outline clearly - with regulations 

in front of them of avenues available to us within the current law - 

then I suggest that we roll with that flow. 



Anecdotal stories of we did or they can do me, as Treasurer, no good. Profession advice would be good, but from my point of view as a recovering brick wall banger this issue is past. Small town work-arounds which we used to open our bank account originally: "We sometimes do this for church groups or such..." don't work: "We can't do than" any more. 



If these two sources are correct, then any bank anywhere which would 

open an account for us with a simple EIN (which I repeat we have had 

all along) would be ignoring its requirements as a banking institution. 

I wouldn't want to go there... 



If these two sources are incorrect and the simple process we used originally to open our bank account is good now then our current bank 

is ignorant of the current regulations . 



So, I ask again: 

Do we have a banking expert in the house? 

That person should step forward and explain the up-to-date banking 

requirements that on the one hand forced PayPal to freeze our account 

with no notice (a pretty drastic action I'd say) and have our bank telling 

us we could no longer open an account as we once had on the other. 



It is positively clear to me that in order to have a PayPal account we will have to either become a legal non-profit organization, or permit our 

Treasurers to open PayPal accounts which would make every PayPal 

donation the personal property of the Treasurer. The good news is that 

we really don't NEED a PayPal account - it is offered because some members 

have requested it to make their donations more convenient for them. 

An important side benefit of PayPal is that donations can be made IN ANY 

CURRENCY FROM ANY COUNTRY and PayPal does the exchange rates 

automatically. We have members who donate from other countries who 

have to jump through hoops to get a bank check written in USD . And 

depositing foreign currency checks involves fluctuating exchange rates and 

long delays between a donor sending a check and the check being paid. 



It is the primary ASP bank account that is our first concern. We need to 

understand what we are up against then act accordingly. I feel I've done that and have little leeway left over for second guessing. I am totally open to knowledge-based decision making. My knowledge is limited to the two sources as I have related to the committee. Batter up! I've taken my last swing at this curve ball. 



There is another aspect which affects this project. While I have been asked to take the lead in this discussion, and while I remain ASP's Treasurer, the fact is that I've been Treasurer for my three-year term plus about an additional year and a half despite having informed the business meeting months prior to my three-year rotation date that my time to rotate out was coming up soon. [ We did eventually have an election which didn't work out so I agreed to continue the necessary work.] 



However I find myself really itching to put this problem to bed in the swiftest way possible and either have someone elected to this office, or announce that as of "X" date I resign the office of Treasurer whatever the consequence.  In an F2F meeting I'd bring in the bag of cash, drop it on the table, and at long last tell the group to find a new Treasurer because I wasn't taking that money home with me again. 



I have agreed not to do that here, but even that agreement will some day reach a limit beyond which I will not go. So when Al-Anon Jerry says let's get our financial house in order so that transition can take place that's what I mean. If the information I bring to you is wrong and it turns out I've exaggerated the situation based on the information I have been given, that'd be wonderful news. Just know that I'm done digging. I've done my due diligence. Now it is the Business Committee's responsibility to either continue with my suggestions or chart another direction based on new data. 



In an earlier letter I mentioned that I'd like to see this thing through by the end of September. Another way to look at that date is that it is my best estimate of how much longer I am willing to extend my service. Can we please direct ourselves in a manner which will put the facts of our banking situation clearly before us so we can make an informed decision? 



- - - - - 

(As an aside, while opening an account at a national bank seemed to have so much merit, a little internet searching made it clear that even the most widely spread banks have huge coverage holes. Bank of America, for instance, has more than a thousand banks in California (3,000+?) and a thousand or many hundreds in some states, but also has few or none in dozens of others. These coverage holes would effectively restrict those members who hail from areas where no Bank of Americas exist (or if they do they are 50, 100, or 250 miles away) from standing for office. Using local banks would enable any member to stand if they choose. So a national bank would not be acceptable to me because even the largest of them will never have enough branches to be down the street or around the corner from every prospective Treasurer. Too bad though, 'cause it would make some things a lot simpler...$-) 

- - - - - 



Long, hot day - thanks for listening, 

Hugs, 

Jerry