Comments on: $800,000 award from city could end up hurting Zulu http://thelensnola.org/2010/03/04/800000-award-from-city-could-end-up-hurting-zulu/ Investigative Journalism from New Orleans and the Gulf Coast States Wed, 16 May 2012 20:21:31 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: jinx http://thelensnola.org/2010/03/04/800000-award-from-city-could-end-up-hurting-zulu/comment-page-1/#comment-451 jinx Sat, 06 Mar 2010 18:29:55 +0000 http://thelensnola.org/?p=4027#comment-451 Ha. I have passed the bar, though I know precious little--less than you, Frolic, and probably less than Jay-Z--about tax law. I don't think it's appropriate for Zulu or anyone else to cheat on their taxes. It's just not clear to me from the article who the loser is here (in the specific context of Zulu's tax-exempt status, and not with respect to the larger issue of whether public money should be allocated to help Zulu rebuild). Do taxpayers lose out because tax-exempt status has been given to an organization that shouldn't be tax-exempt? Is Zulu losing, assuming its 501(c)(7) status is revoked, because it didn't have the foresight to become a 501(c)(4)? Is there something else I'm missing? Just trying to figure out how much I care about this. Ha. I have passed the bar, though I know precious little–less than you, Frolic, and probably less than Jay-Z–about tax law. I don’t think it’s appropriate for Zulu or anyone else to cheat on their taxes. It’s just not clear to me from the article who the loser is here (in the specific context of Zulu’s tax-exempt status, and not with respect to the larger issue of whether public money should be allocated to help Zulu rebuild). Do taxpayers lose out because tax-exempt status has been given to an organization that shouldn’t be tax-exempt? Is Zulu losing, assuming its 501(c)(7) status is revoked, because it didn’t have the foresight to become a 501(c)(4)? Is there something else I’m missing? Just trying to figure out how much I care about this.

]]> By: Frolic http://thelensnola.org/2010/03/04/800000-award-from-city-could-end-up-hurting-zulu/comment-page-1/#comment-450 Frolic Sat, 06 Mar 2010 16:16:06 +0000 http://thelensnola.org/?p=4027#comment-450 First sentence should have read: "Having been a trustee for many years of a non-profit educational group, my sense was that you wanted to have the most advantageous status for your particular organization." First sentence should have read:

“Having been a trustee for many years of a non-profit educational group, my sense was that you wanted to have the most advantageous status for your particular organization.”

]]> By: Frolic http://thelensnola.org/2010/03/04/800000-award-from-city-could-end-up-hurting-zulu/comment-page-1/#comment-449 Frolic Sat, 06 Mar 2010 16:15:10 +0000 http://thelensnola.org/?p=4027#comment-449 I ain't passed the bar, but I know a little bit... Having been a trustee for many years of a non-profit educational, my sense was that you wanted to the most advantageous status for your particular organization. While the 501 c3 might have the best tax advantage, it's also more restrictive. For example, according to this link, a 501 (c) (7) can lobby and engage in political activity: http://www.t-tlaw.com/lr-06.htm From just glancing the document linked above, it looks like membership dues to a 501c7, less the percentage used for lobbying, are tax deductible. Or in some circumstances they are. It's not entirely clear to me. Contributions, however, are not. Again, I'm not a lawyer and didn't study this document carefully. Might be interesting to get the opinion of an expert. Ariella: Maybe you could ask a law professor to clarify? I ain’t passed the bar, but I know a little bit…

Having been a trustee for many years of a non-profit educational, my sense was that you wanted to the most advantageous status for your particular organization. While the 501 c3 might have the best tax advantage, it’s also more restrictive.

For example, according to this link, a 501 (c) (7) can lobby and engage in political activity:

http://www.t-tlaw.com/lr-06.htm

From just glancing the document linked above, it looks like membership dues to a 501c7, less the percentage used for lobbying, are tax deductible. Or in some circumstances they are. It’s not entirely clear to me. Contributions, however, are not.

Again, I’m not a lawyer and didn’t study this document carefully. Might be interesting to get the opinion of an expert.

Ariella: Maybe you could ask a law professor to clarify?

]]> By: jinx http://thelensnola.org/2010/03/04/800000-award-from-city-could-end-up-hurting-zulu/comment-page-1/#comment-448 jinx Sat, 06 Mar 2010 14:23:54 +0000 http://thelensnola.org/?p=4027#comment-448 Can you explain what Zulu gains (if anything) from having 501(c)(7) status, as opposed to (c)(3) or (c)(4)? Thanks. Can you explain what Zulu gains (if anything) from having 501(c)(7) status, as opposed to (c)(3) or (c)(4)? Thanks.

]]> By: Ariella Cohen http://thelensnola.org/2010/03/04/800000-award-from-city-could-end-up-hurting-zulu/comment-page-1/#comment-444 Ariella Cohen Fri, 05 Mar 2010 01:55:15 +0000 http://thelensnola.org/?p=4027#comment-444 Hi there- It's unclear whether the "membership" dues listed in the 990 include payments to ride in the parades. These are the kinds of questions we'd ask Zulu if we would get the call back. For now, all we know is what we can divine from the 990s Hi there- It’s unclear whether the “membership” dues listed in the 990 include payments to ride in the parades. These are the kinds of questions we’d ask Zulu if we would get the call back. For now, all we know is what we can divine from the 990s

]]> By: Frolic http://thelensnola.org/2010/03/04/800000-award-from-city-could-end-up-hurting-zulu/comment-page-1/#comment-443 Frolic Fri, 05 Mar 2010 00:23:00 +0000 http://thelensnola.org/?p=4027#comment-443 Where is all the money coming from? Are these riding dues? Could those also be considered membership dues? Where is all the money coming from? Are these riding dues? Could those also be considered membership dues?

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