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1 hour ago, rpbobcat said:

I'm looking forward to seeing specifics as to what exactly  "a well - defined on going business relationship"  means.

well - what "makes sense" is:

1. Cadets provide judges & talent for educational clinics

2. Cadets recruit at USB events

3. Corporate talent relationships/possibilities (Tom Aungst for example) alignments beneficial to USB

4. Ticket/merchandise sales relationship

5. Cadets pool of volunteers? Cadets "host" a championship or regional event for USB?

Edited by George Dixon

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Under this new management plan, what happens to the alleged debt that exists? I say "alleged" because I have no clue as to the finances of the organization.

Best of luck to the Cadets, going forward!!

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11 hours ago, Jeff Ream said:

isn't the area where YEA HQ is due to be razed as part of the downtown renovation project? 

Hopefully explosives will be involved.

It would indeed be a poetic end to this chapter of the Hopacolypse.

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2 hours ago, MikeD said:

A for-profit corporation cannot own a non-profit as you correctly stated, but it can run and manage a non-profit corporation. It can appoint all or some of the non-profit board, and it can manage financials, as long as that is not mixed in with the for-profit financials. There needs to be a definite wall separating the two, but it is possible. For-profits often have non-profit charitable foundations, for example.

Correct as has been repeated in this thread a lot.  But the key is that no money can flow from the NPO to the for profit.  So it's not "owning" it.  A for-profit can certainly dump as much cash as they are willing to into an NPO, but that wasnt the question.  It was could they switch from NPO to for profit, and the answer is no, not legally, without major hassles and lengthy processes.

Edited by TwoValves

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49 minutes ago, Barneveld said:

Under this new management plan, what happens to the alleged debt that exists? I say "alleged" because I have no clue as to the finances of the organization.

Best of luck to the Cadets, going forward!!

I was wondering that too, but I don't want to be negative. I'm sure they have good legal advice, but if the assets of YEA were siphoned off to Cadets and USBands before YEA files for bankruptcy, I can't see the creditors sitting around saying, "Well nothing left of value, we'll just cut our losses."

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1 hour ago, exitmusic said:

This is just so, so, so incorrect. 501(c)(3) designation is purely optional. The company could convert to a for-profit entity relatively simply and then sell itself to the highest bidder. This isn't rocket science. What is the purpose of US Bands continuing to operate as a non-profit when the tax code has effectively gutted any incentives for individuals to donate money to charities? Why not make as much money as possible, with no restriction?

I guess my decades of management in non profits and regular work with NPO specific attorneys is just all wasted time.  

Google deeper.  You cannot just voluntarily "swap" you status.  The NPO must be dissolved and there are strict limitations in how that works from state to state.  

Here's just one of many articles that explains how tricky this process could be.  Essentially it requires a completely new corporate entity to be formed and various ways to then find for one to take control of the other.  Key is that the State must approve it, and in my experience that is never an easy thing to make happen.

https://www.entrepreneur.com/article/295534

As is mentioned other places in the thread... there really is no reason for Varsity to want to "own" USB.  They can support it via Sponsorship and stewardship to make it healthier and more successful, then leverage that to market their products.  

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2 minutes ago, cybersnyder said:

I was wondering that too, but I don't want to be negative. I'm sure they have good legal advice, but if the assets of YEA were siphoned off to Cadets and USBands before YEA files for bankruptcy, I can't see the creditors sitting around saying, "Well nothing left of value, we'll just cut our losses."

Auditors tend to see through those kind of things rather easily.

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4 minutes ago, TwoValves said:

Auditors tend to see through those kind of things rather easily.

It would make sense that someone said earlier that the instruments were on "loan". Food truck and equipment truck could be an issue, but I think those are the biggies. Didn't the Cadets run a bus company, Cadets Coach or something like that? There was mention of it in a 990 but I couldn't find anything else on it. Possibly a way to get cheaper transportation costs by owning the buses and doing tour groups during the off season. I couldn't find anything else after searching.

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