Thursday, April 28, 2016

A Tale of Two Treasurers


Riddle:  How many Treasurers does it take to screw in a light bulb?

Answer: Ummm... two?

No, just one.

But, there's no rule against two Treasurers screwing in a light bulb-- or even a dozen.

The same with a 501(c)3.  A 501(c)3's Board can do whatever it wants - it can fill a stadium with Treasurers.  You know the saying: it takes a village of Treasurers to raise a 501(c)3.  

GA brings up this Tale of Two Treasurers because I was wondering which one- Treasurer No. 1 or Treasurer No. 2- has been tallying the gross receipts for the Mason Civic League, Inc...   

Because for the past 5 years, the 501(c)3 has reported "gross receipts not greater than $50,000" on its e-Postcard returns.

click image to read

Now GA is really confused.

Since at least 2011 the Mason Civic League, Inc. has held "community space"  and administrative office space at 1200 Washington Street, Hoboken NJ- the address used by Treasurer James Barracato on the charity's business filings with the state.

But.... GA's understanding is that the IRS calls office space donations "in-kind donations"...and  the recipient must be a tax-exempt charitable organization or 501(c)(3)- like the Mason Civic League, Inc.

In turn, the recipient charity files the "in-kind donation" of office space (fair market value of rent) on "Non Cash Contributions" Schedule M of Form 990.  

GA is stumped.  I am a layperson, no expert on business accounting... but where is the Civic League reporting the non-cash contribution of the 1200 Washington Street space?

I know, we need more Treasurers to figure this out!

13 comments:

  1. How much is rent of the Washington street corner storefront? Can it be less than $4,200 per month? If not then the money for that rent would be more than 50K per year.

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    1. Actually, it's a double wide storefront. So, you could consider that price as a minimum for each!

      Can't speak to the tax implications of all this "treasurer"-ing. That's above my pay grade and an IRS matter.

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    2. She also rented the storefront on 12th in the same building. If I were that seamstress next door, I'd be nervous. Masonopoly, only instead of little metal charms, you play it with shells.

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    3. The point is how can a charity take in less than 50K a year if the rent on its offices are more than 50K? Did it have a major influx of cash prior to 2010 and been living off that for 2010 onward?

      Rent is just one obvious expense, there are many others.

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    4. Exactly. Cold busted lying to the IRS. Fundraisers? The only money coming in to that joint is from Treasurer #1.

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  2. So when they get to the big house the little fish can teach the scout master how to look like a tough guy. That will definitely scare all the meanies away.

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  3. Killing em this week GA!!!!!!

    C'mon IRS, low hanging fruit here

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    1. absolutely, GA is on fire! i shudder to think what this town would be like with her (and horsey too but GA breaks SO MUCH juicy news, OMG!!).

      :)))))

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  4. every time i see that photo of barracato, i think he's wearing a prison jumpsuit. orange is the new black, right? if only...

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  5. Great work GA, can't wait to see if this goes anywhere or if its just another obsessive dead end. Either way, thanks for dedicating your life's work to the Masons, it's really fascinating.

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    1. Dead end? It's all about sunshine. How come taxpayers can't see receipts and expenditures of a local 501c3? GA is on the taxpayers' side. Clearly, the reporting to the IRS by postcard blocks the taxpayer from seeing how this 501c3 is spending donor money. Did you know the Mason Civic League is sponsoring a Friend's podcast about "dating"? No, you didn't. How could you? They don't file 990 forms, accessible to the public.

      As for "dedicating my life's work" - hardly. This blog is 6 years old, has over 2,500 posts. It's all about sunshine where the cockroaches hide. If you dont like it, you may be a cockroach.

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    2. anon@3:15 sound pretty trollish to me.

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    3. Do the Boy Scouts give out a merit badge for internet trolling ?

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