Report from incorporation research committee

[Jeff Mitchell]

Erik Hovland wrote:
>> ============
>> Recommendation
>> ============
>>
>> As both Tradebit and Magnatune (to take two examples) are incorporated
>> in the United States, and given the relative size of the United States
>> to Germany, if all other things are equal it would make more sense to
>> allow tax-deductible donations from individuals or corporations from
>> the United States. This would open us up to more potential funding. It
>> seems that if we go with the SFC we basically have a very easy way to
>> get these donations, while at the same time not impinging on our
>> rights to decide what to do with our funds. Furthermore, this fits
>> well with our plans to create a board as outlined above --- the board
>> would simply be required to decide how to allocate funding, then the
>> predetermined SFC contact (on the board) would request a reimbursement
>> for the necessary amount.
>>
>> It is our preliminary recommendation that the Amarok project choose
>> the SFC for managing its funds, while considering an additional
>> second, German-based entity.
> 
> I see no problem w/ this plan. I have watched a few projects (some
> not related to software) go non-profit in the US. And doing it yourself can
> usually be a pain.
> 
> I am curious if SFC has any statement associated to if you want to
> leave SFC. Especially on how your money goes w/ you if you do leave.

Basically, the IRS has rules about how that can be done -- specifically,
the money must go to another 501(c)(3).  As long as we follow the rules
(i.e. be legit and legal) the SFC won't stop us.

> See what I get for taking a break from Amarok. I didn't make the initial
> list. I guess I better get back to submitting more code! Just kidding, my
> involvement has always been around the fringes.

:-P

--Jeff