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Proposed DCI Reorganization


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yeah it took a little while and a admin overhaul to finally get it going. I think A Class is going to keep growing as time goes on. One thing I like, and I know USSBA does this too is we let you choose your class from the get go. No waiting til 2 weeks before finals to be placed in a class like one other circuit does. Also, unlike indoor, no promotion system.

Yes, bands do choose...though, if the USSBA circuit sees that a band is just hanging in 'A' to pick up easy wins, they may move them up...it has been rare though. I don't think it would happen mid-season, probably a "next year you go open" kind of thing, but I am not 100% sure.

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Here we go again.

1. I thought the purpose of this whole endeavor was to make more money for the drum corps activity. Are we serving that mission or not?

2. If so, how much does 501©(3) status limit what corps or DCI can do? We've had numerous corps running mini-casinos, bus companies, selling candy, washing cars....none of these operations (except, arguably, the bus company) have any greater relevance to the mission aside from how the proceeds are used.

I just meant that they should be setting up for-profit business entities that DCI owns. Those entities do not have to serve a charitable end.

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Here we go again.

1. I thought the purpose of this whole endeavor was to make more money for the drum corps activity. Are we serving that mission or not?

2. If so, how much does 501©(3) status limit what corps or DCI can do? We've had numerous corps running mini-casinos, bus companies, selling candy, washing cars....none of these operations (except, arguably, the bus company) have any greater relevance to the mission aside from how the proceeds are used.

1. Correct

2. The parent company is a non-profit, but the sub-companies are all LLC's who's mission it is to support the parent co. The law has no dollar limit on what the LLC's can earn as for-profit entities.

And to correct an earlier comment by someone, the sub-LLC's would not be taxable if their taxable profits were contributed to the non-profit parent as a charitable contribution.

The parent's mission is to support the DC activity.

Edited by garfield
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LLC's have passthrough taxation, in that members (shareholders) are taxed, not the entity itself.

In the case where 100% of the shares of an LLC are owned by a tax-exempt organization, these revenues are generally not taxed if the organization can demonstrate that these revenues are used in furtherance of the mission of the organization.

Anyway, revenues can be passed from the sub to parent, just in the same way as revenues from any LLC can be distributed to the members (shareholders). No need to book as donation or contribution or whatever... because it is wholly-owned.

Rather than transferring these revenues, it would be more simple to just keep these in the sub and distribute directly to corps in the form of performance fees, etc., as well as cover operational costs associated with the tasks of the sub.

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(OK, I found one limitation. You can't put a 'c' in parentheses without this board turning it into a copyright symbol.)

'c'

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