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IRS complaint filed against DCI?


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I have to say this had really made my morning. I work for a mid-size ($40 million annual) 501©(6) that has a related 501©(3) and we have a few nutjobs like this guy who make it their mission in life to complain that we sould lose our not-for-profit status because we bring in too much revenue. Garfield has summed it up very well - the IRS won't even look at this. I've yet to comment in the 990 threads (again - great analysis Garfield) but my reaction is that Acheson does a good job for the organization and if anything he is under compensated vs industry standards. A little more reserves would be nice ... but I digress.

Let us assume for a moment that there is a judging conspiracy. And let us assume for a moment that Cesario has some conflict of interest. Neither of which I beleive, btw. Still ... the IRS won't care. This would be a matter for the DCI Board of Directors to handle according to their bylaws. Paying industry insiders to procide work for the organization is not only common - it is expected. They are called 'subject matter experts' and the organization has a fiduciary duty to spend their money using the best resources in the industry.

I've worked in the non-profit industry for 18 years and 990 complaints happen to just about every organization. All (nearly) all of them are as dumb as this one.

You make excellent points. I am in the process of organizing a building committee to oversee a five year maintenance plan for a church and school building. We cannot use vendors, even though the vendors know the buildings better than the committee members. If I'm having a bit of a challenge finding a committee for a rather mainstream kind of project, it must be more difficult for a specialized activity such as DCI. Experts in the marching arts are not a dime a dozen.

Also, if people were to price the product DCI produces, I think they'd find DCI does an amazing job considering it's revenues. I know we can tend to think DCI has deep pockets and should be doing more for the corps, but as the 990's show this really is not the case, just as when you look at individual corps 990's: no one on staff is making seven figures and if they are driving Escalades, either they were wealthy before drum corps, inherited money, or won the lottery.

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Know of two groups that lost their non-profit for a while. One missed the filing deadline and other (from what we were told) was not careful that they were following the part of the charter that allowed them to be a non-profit. First group no longer exists for other reasons and second one is non-profit again after redrafting the non-profit part so it ain't so vague and can be followed easier. But those taxes during the non-profit stage were a kick in the pants.

Attend the busness meetings and always grumbling about how the group is being run and how the money is spent. But unless the non-profit part of the charter is being messed with (mainly $$$$ for education) doubt if the IRS would care. If money is being kited then that's a job for the cops, not the IRS (unless it's the education money not getting there).

IOW calling the IRS because judging is a fraud.... yeah... right......

Edited by JimF-LowBari
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Letting it all mull about for a bit, I think there IS a specific argument that could be made for an IRS complaint (though Blair has not stated it). However, I don't think I will state it here in public, for obvious reasons.

Let's remember the National Football League is a 501©6. The IRS allows that to continue ...

As long as you stay within your bylaws and file your paperwork on time, it is really hard to lose status. Some people think that 501© organizations have to 100% charitable and not operate like a for profit organization. I can tell you from experience that all mid to large size 501© organizations run their business like ... businesses. Based on revenues and reserves, and number of staff, I would consider DCI to be a small organization.

A good explanation of the types of 501© organizations:

http://en.wikipedia.org/wiki/501%28c%29_organization

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If I was Dan Acheson, I would've responded to John Blair's emails differently (inspired by this):

Dear Mr. Blair,

Attached is an email that we received on Aug 26, 2014, at 1:52 PM. I feel that you should be aware that some ######## is signing your name to stupid emails.

Very truly yours,

Drum Corps International

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Agreed Peter... group I spoke about earlier has over 1M in the bank(s) at times but couple 100K in expenses as big annual event bounces everything real well. Staff and BoD not paid but get perks in the way of free travel and expenses at national events. What goes to the educational part of the mission (how they keep non-profit) is well below 5% IIRC and a small part of what the groups works on over the year.

IOW to be non-profit your group does not have to give a large percentage or the profits, can have $$$$ in the bank end of year and non-profit part does not have to be the main part of the groups dealings.

Edited by JimF-LowBari
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I reported the I Don't Support DCI page to Facebook for harrassment. I got rejected, but I felt like wasting just as much time as John Blair.

Perhaps he should have not put this up with his home phone number on it, because I foresee crank calls from all of DCP now.

This guy is a joke.

If all you did was report that FB page as harassment, then I think you likely came no where near wasting as much time as Mr. Blair.

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