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Full Disclosure MWC & SMAI

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K Rogers View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote K Rogers Quote  Post ReplyReply Direct Link To This Post Topic: Full Disclosure MWC & SMAI
    Posted: 1/21/15 at 6:30am
Hey-

Scottish Masters Athletics International, NFP is an Illinois Not For Profit Corporation (SMAI) and is still applying for Exception under 501(c)(3) of the Internal Revenue Code. Directors are Kevin Rogers of Illinois and Bill Scruggs of New Mexico, USA.

Mission:
To share and promote the Scottish heritage and culture of the Scottish Highlands and to organize and operate the annual “Masters World Championships” (MWC) for the traditional Scottish Highland Games athletic competitions, also called the “Heavy Events.” The events include stone throws, weight throw, hammer throws, caber toss, sheaf toss and similar traditional feats of strength; and foster a community of Masters age (40 years +) athletes worldwide.

Basic Rules:
1) The MWC is an annual amateur competition with the location being determined by the application process with Highland Games sites and Host Organizations across the globe. The locations of competitions are determined by the SMAI.
2) The MWC is open to all athletes over 40 years of age with proper qualification as determined by the SMAI.
3) Entry fees, donations and other contributions will help fund the website, advertising, marketing and miscellaneous promotional expenses.
4) Upon dissolution, all funds and assets shall be donated to the Scottish Home of the Illinois Saint Andrews Society, 2800 Des Plaines Avenue, North Riverside, IL 60646, an assisted living and nursing care provider serving older adults since 1910.
5) SMAI shall not adopt any practice, policy or procedure which would result in discrimination on the basis of age, race, sex, national origin, religion or creed.

Membership:
Membership is not required to participate in the Masters World Championships and therefore no annual membership dues are required; further, there are no voting or membership meetings.

Financial:
After 14 years of hosting the MWC, we have $12,000 in funds and assets.

Just throwing that all out there for transparency.

-K


Edited by K Rogers - 1/22/15 at 8:17am
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Silverback Quote  Post ReplyReply Direct Link To This Post Posted: 1/21/15 at 11:40am
I think we invest all 12K on beer the next game, and then we can waste the rest of it
Mule

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Post Options Post Options   Thanks (0) Thanks(0)   Quote cabertosser Quote  Post ReplyReply Direct Link To This Post Posted: 1/27/15 at 7:11am
Elmore Leonard fan Myles?
You f**ked up - you trusted us! Hey, make the best of it!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bigirish01 Quote  Post ReplyReply Direct Link To This Post Posted: 1/27/15 at 8:54pm
Full Disclosure? Seriously?
Wait a minute... You call this transparency? Maybe its Obama transparency.... Where I come from the transparency of a 501(c)(3)is in documentation.
Open the books and show where monies are spent and who authorizes it. What percentage is spent on the Organization i.e. salaries. Who is the Board of directors that authorizes expenditures?
This copied directly from you SMAI Home page:
"After ten years of operations guided by Masters World Champion and founder Bill Scruggs of Steamboat Springs, Colorado, the company has no debt and a bright future. Bill recently decided to retire and turn over the helm to Kevin Rogers of Springfield, Illinois but he has agreed to stay involved as Chairman of the Board of Directors. With the transition, we have changed our status from a Limited Liability Corporation (LLC) to a General Not for Profit Corporation (NFP) seeking 501(c)(3) tax-exempt status."   
So now you are claiming that you are "Applying" for a tax exempt status?
Did you write receipts for donations for Tax purposes?
Transparency? OK Open the books. Can you supply us with copy of all monies received as well as expenditures?
as 501(c)(3) if this information is requested you are obligated to provided it.
Jay "Big Daddy" O'Neill
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 17/20 Quote  Post ReplyReply Direct Link To This Post Posted: 1/28/15 at 7:04am
Lighten the f up!

I MAY BE BIG , BUT I'M FAST
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bigirish01 Quote  Post ReplyReply Direct Link To This Post Posted: 1/28/15 at 8:53am
Lol.. okay
Jay "Big Daddy" O'Neill
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Detroitpete Quote  Post ReplyReply Direct Link To This Post Posted: 1/28/15 at 9:39am
"With the transition, we have changed our status from a Limited Liability Corporation (LLC) to a General Not for Profit Corporation (NFP) seeking 501(c)(3) tax-exempt status."  

"Seeking" and "applying for" are synonymous.  There is no discordant statement between what is posted on the web page or what Kevin stated in his initial post here.  Requirements are different for reporting under an LLC and a 501(c)(3).  The post above assumes requirement standards which may be appropriate for a 501(c)(3), however the organization has yet to receive that status.  Ergo--moot point.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Ballard Quote  Post ReplyReply Direct Link To This Post Posted: 1/28/15 at 11:36am
Mr O'Neil,
I sure hope you are joking around about Kevin.  If not, I sure would like to meet ya.
Big Doug
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bigirish01 Quote  Post ReplyReply Direct Link To This Post Posted: 1/28/15 at 5:56pm
Joking? I'm just pointing out the difference between being transparent and having "full disclosure" vs what what was posted here.
As far as meeting me, Sorry Doug...I'm already spoken for.
Jay "Big Daddy" O'Neill
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Post Options Post Options   Thanks (0) Thanks(0)   Quote McSanta Quote  Post ReplyReply Direct Link To This Post Posted: 1/28/15 at 8:35pm
just reference for all those reading:

IRS 501 C 3 reads:

26 U.S. Code § 501 - Exemption from tax on corporations, certain trusts, etc.

(a) Exemption from taxation
An organization described in subsection (c) or (d) orsection 401 (a) shall be exempt from taxation under this subtitle unless such exemption is denied under section 502 or 503.

(b) Tax on unrelated business income and certain other activities
An organization exempt from taxation under subsection (a) shall be subject to tax to the extent provided in parts II, III, and VI of this sub chapter, but (notwithstanding parts II, III, and VI of this sub chapter) shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes.

(c) List of exempt organizations

The following organizations are referred to in subsection (a): 

(NOTE: there are 29 different organization types under 501 (C) 


(3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.

----- 
Now off the beaten path a bit to perhaps provide some insight of festival's 501(C)3:

For a festival to qualify, they usually go under the educational portion of  (3).  Thus, there is always the education aspects  (history, clan, ...) of the games.  However, an organization has to do more than a festival to qualify otherwise they fall under a different section ... 

So if you are asked to do a demo or give a presentation by a festival, you're helping to for fill their obligations.   I have found these kind of activities has help me influence the board on things important to running athletics. -- my 2 cents which do not apply here
------

Of course this is something different than qualifying under to foster national or international amateur sports competition   -- so sorry for the interruption and carry on.

Mark McVey

"The work of science is to substitute facts for appearances and demonstrations for impressions." -John Ruskin
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hilander3131 Quote  Post ReplyReply Direct Link To This Post Posted: 1/28/15 at 9:03pm
Big Doug .......... O'Neil is pointing out same as I, the SMAI under rogers leadership has for years implied it was going to apply for tax exempt status. Many donated because of that impression and sponsors were acquired with no financial reports or responsibility. LLC or tax free?? and those who made a tax free donation and claimed such on tax returns may be in violation of tax codes, sponsors likewise.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote greynolds177 Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 4:56am
I wonder if ANY of our worried correspondents have had the decency to contact Kevin or any of the other members of the Board of Directors of SMI?

If I was a betting man.....

A.D.Inverness 1999-present; MWC2006, World Championships 2007, MWC2009 and MWC2014. Organiser of Guinness World Record for Caber Tossing. Scottish Masters International Hall of Fame Inductee 2014.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hilander3131 Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 5:54am
Well then Reynolds.. you would have LOST that bet!!!!!!!!! And maybe you can enlighten us just whom is the other members of the board because all I have been advised by Scruggs that it Scruggs and Rogers. And by the way..... how much did you pay Garman for those cabers?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote K Rogers Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 6:30am
Hey-

Ya, so maybe using the term "Full Disclosure" in front of you guys was a mistake. It was NOT intended to comply with any Federal regulations by posting the above paragraph on this message board. It was simply intended to let you guys know where we're coming from. Nothing more. I'm aware that posting here does not comply with the IRS requirements, but thanks for reminding me. 

You want to know what salaries were paid? None, never paid anything to anybody. All of our work has been done for free for the development of the MWC... simple as that. 

You want to know have we applied for tax exempt status? Yes, and after a request for additional information from the IRS, we are applying again with supplemental information and documentation. The application documents are at my attorney's offices at this very moment and we are preparing to apply again. Should we not mention the application for exempt status until its officially granted from the IRS? Well, maybe not ... if its been misleading, then I could take those comments down from the website. Is that what you guys want. I was only try to show where we are going with the program.

If it was misleading that we were working to gain "Not For Profit" status, then I'm sorry but we have not yet been granted such status from the IRS due to their request for additional documentation which we are currently preparing for supplementation to our application.

I'll share all the rest of the financial details with you guys, but I'll also caution that if the burden to comply with the 501C3 Not For Profit regulations are too heavy and the hostility from you guys is too much to bear, then I'll suggest to Bill Scruggs that we pay off the attorney, shut down and donate the funds to the charity and quit the MWC program.

I've quit better paying jobs. 

-K

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Post Options Post Options   Thanks (0) Thanks(0)   Quote K Rogers Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 6:33am
Buck-

Are you dragging all of us thru the mud just to find out how much Dave Garman got paid for the cabers at the MWC in Scotland?

Wow, that's a good one.

-K
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hilander3131 Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 6:50am
Rogers, that is just one issue of many........ and if mud bothers you stay away from the much hole. If you want to play the victim role so be it, I am wanting things to be done correctly and civilly. Apparently you do not choose the high road. May I remind you, you began this thread. My inquiries were to you by email, not on a public forum. for reasons known only to, you that was your choice, and to expound on transparency. That was my original request to you. Garman was just an example, as were sponsor monies and athlete donations, revenues and expenses who thought the SMAI was a tax exempt organization. Transparency does not require a defense, or dragging 'us' through mud.
Buck
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Post Options Post Options   Thanks (0) Thanks(0)   Quote K Rogers Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 6:51am
Ya know,

I've really got to say that the anxious leap to distrust a group of athletes working to build a not for profit enterprise for hosting a not for profit international competition is discouraging.

I'll send everyone a Scottish Masters Athletics Banking Summary ... but it has no salary items and it has no payments to Dave Garmen for anything. So, its not so good for your conspiracy theories.

If you are just trying to make me quit because of your hatred for me, then just say it.

-K
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Post Options Post Options   Thanks (0) Thanks(0)   Quote K Rogers Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 7:22am
Seriously-

It might be time for me to step down from SMAI leadership. My patience for all the criticism is getting too short and it takes all the fun out of it. I'll talk to Bill Scruggs about finding someone else to do this job. I'll stick around to finish this year's event at St. Louis and then let someone else try to do it.

I'll retire as soon as we find a replacement. If anyone is interested working this program, please send me an email at kevinwrogers98@gmail.com 

-K

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hilander3131 Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 7:30am
Rogers, hatred?? no..... just a desire for business to be done correctly. Any hate is a figment of your mind, not mine.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote C. Smith Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 7:50am
Crotchety old men in this thread. 

And to think, I was under the impression that everyone loved the SMAI/MWC.  Yet, for some reason, they have the issues that everyone else has.  Interesting. 

Kevin Rogers, you rock and always have imo.  You also should be getting paid for your role in the SMAI, and the fact that you don't, speaks to me.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote K Rogers Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 9:02am
Buck-
 
If you truely want to see busines done correctly, and you have the background and experience to get it done correctly ... then why didn't you just offer to help us?
 
I'm paying an attorney to file the paperwork for us, when we have an expert among our group... why not help us? You could have mentioned it earlier. I could use the help.
 
-K 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Detroitpete Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 9:21am
Originally posted by C. Smith C. Smith wrote:

Crotchety old men in this thread. 

And to think, I was under the impression that everyone loved the SMAI/MWC.  Yet, for some reason, they have the issues that everyone else has.  Interesting. 

Kevin Rogers, you rock and always have imo.  You also should be getting paid for your role in the SMAI, and the fact that you don't, speaks to me.
 
+ about eleventy million.  Yes, hell has frozen over.  Craig Smith and I are in agreement :)
 
Kevin, legally doesn't have to share a single word about the finances of the LLC outside of co-owners or members.  Since the individuals pissing and moaning about this aren't co-owners or members, they are not entitlied, by law, to any information.  That being said, Kevin DID provide financial information to the public--which should satisfy the pissies.  Kevin also supplied information about LLC to non-profit status change progress AND challenges. Once a 501(c)(3) is obtained (which even if all documents have been supplied and meet their standards can take anywhere from 6-18months--add more time if forms have to be corrected or additional information is needed), then the public reporting of financial information is completed per IRS guidelines such as 990 Audits and Annual Reports.

But none of this is actually the reason behind all the pissy-assed sniping, is it?

Jesus---get a life.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote C. Smith Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 9:40am
Originally posted by Detroitpete Detroitpete wrote:

+ about eleventy million.  Yes, hell has frozen over.  Craig Smith and I are in agreement :)



We should probably write this date down, cause it's unlikely to happen again Wink
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Post Options Post Options   Thanks (0) Thanks(0)   Quote K Rogers Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 11:08am
Ya know -
 
This exchange does bring up a question in my mind ... is the 'Not For Profit' status worth it?
 
I had the impression that NFP would obviously be the type of company we should form and convinced Bill to file as NFP and seek exception from taxes due to the "international amateur sports competition" clause of 501(C)(3), as referenced above.
 
But as we can see, if becoming a NFP is not worth the headaches of answering every spiteful question then maybe we should reconsider our application.
 
I'm not so sure that NFP is way to go if this is any indication of how the customers line up at the complaint window.
 
-K


Edited by K Rogers - 1/29/15 at 11:54am
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bigirish01 Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 7:31pm
When you post a thread and call it full disclosure, and someone questions it... That's how forums work.
People will question, its the nature of public forum. Since my post I have guy who wants to meet me, I was called crotchety, pissy, and Kevin Rogers wants to quit.
Buck is getting "lessons" in 501(C)(3) regulation which is a Joke because he has probably started and run more of them then any of you will ever know. I work under the parameters of 2 Non for profit Highland games..... so guys, spare wiki-pedia cut and paste.... we get it.
Lots of defensiveness... weird
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Post Options Post Options   Thanks (0) Thanks(0)   Quote McSanta Quote  Post ReplyReply Direct Link To This Post Posted: 1/29/15 at 7:52pm
if anybody is interested, there is plenty of websites out there that have the publicly available IRS 990 forms out there to review.   

For organizations who file the long form, the 990 gives all sorts of fun stuff like salaries for key employees ...  

I did a quick search and found several festivals info on line.  Nothing overly exciting in them as they all seem to file the short form. 

Even the short form gives number geeks like me some interesting  info:   Basically, I was able to compare other festivals' gross receipts, grants/donations, ... and expenses to my own to see how they stack up  --- but that is about it and I cannot imagine many on this board would get excited by the info. 

An example of a website  https://www.citizenaudit.org but there is plenty more

Mark McVey

"The work of science is to substitute facts for appearances and demonstrations for impressions." -John Ruskin
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Post Options Post Options   Thanks (0) Thanks(0)   Quote greynolds177 Quote  Post ReplyReply Direct Link To This Post Posted: 1/30/15 at 6:21am
Mark

You raise some interesting points about comparing your own festival with others as a "learning experience" and I agree with your conclusion regarding the value of doing so. 

All I have ever learned is that every Highland Games and / or Festival is a unique collection of financial circumstances. 

You (and others) may find it worth using Google Scholar to find a short paper by Donald Getz of the University of Calgary called "Why Festivals Fail".



Gerry






A.D.Inverness 1999-present; MWC2006, World Championships 2007, MWC2009 and MWC2014. Organiser of Guinness World Record for Caber Tossing. Scottish Masters International Hall of Fame Inductee 2014.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote C. Smith Quote  Post ReplyReply Direct Link To This Post Posted: 1/30/15 at 6:24am
Originally posted by bigirish01 bigirish01 wrote:

 I was called crotchety, pissy, and Kevin Rogers wants to quit.

To be fair, I called everyone in this thread crotchety.  

And I said nothing to the validity of the arguments, just that Kevin should be paid for running the MWC.  Every AD should be paid for running a game imo.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote dWood Quote  Post ReplyReply Direct Link To This Post Posted: 1/30/15 at 7:08am
W/out a doubt Kevin should get paid! At least reimburse him for all the advil he takes because of jerks critiquing(sp. It's late and I'm tired) his great work
JUST BRING IT /

SPEED KILLS..BUT STRENGTH PUNISHES
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Detroitpete Quote  Post ReplyReply Direct Link To This Post Posted: 1/30/15 at 7:39am
From bigirlish: "When you post a thread and call it full disclosure, and someone questions it... That's how forums work."

-Your question about disclosure has been asked and answered.  Under an LLC there is no requirement for public disclosure, as I educated you on in my previous post.

-Your question about the ongoing process of non-profit status has been asked an answered, as I educated you about in my previous post.  Applying for, and seeking mean the same thing.  Kevin didn't HAVE to share any of this, but went the extra step to do so.

"People will question, its the nature of public forum. Since my post I have guy who wants to meet me, I was called crotchety, pissy, and Kevin Rogers wants to quit."

-Um...emmergerd!  Someone actually wants to 'meet' you because you posted something here?  This must be the first time in recorded history that this has EVER happened!  Wait....haven't you done the same thing to me?  And yes, by attempting to play the victim because people are holding you responsible for what you've posted--you ARE being pissy (I am of course ALWAYS crotchety)

"Buck is getting "lessons" in 501(C)(3) regulation which is a Joke because he has probably started and run more of them then any of you will ever know. I work under the parameters of 2 Non for profit Highland games..... so guys, spare wiki-pedia cut and paste.... we get it."

No, I personally wasn't attempting to educate "Buck".  Don't know Buck, don't care.  I was attempting to illuminate the terrain respective of LLC and Non--Profit, to which you had currently found your confusion deployed.  My guess is you would benefit from additional study in this area.


"Lots of defensiveness... weird"

-No defensiveness at all on my part.  I'm just highlighting what you provided, which in my opinion, is the clearest example of total douchebaggery I've seen in a long time.

So, to surmise:  If you have issues with management of SMAI/MWC speak directly to them.  If you would like to be more of a man about it, toss in your time and help them out, especially in the areas where you think they have challenges---or vote with your feet and choose not to throw with them.  Either way, these are better examples of more honorable behavior than flaming away at them in a public forum.

You know--you can't bully everyone.
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