BIG NEWS: APCAA PRIVATE FOUNDATION APPROVED BY IRS AS ASSOCIATION UPDATES TAX-DEDUCTIBLE STATUS
By BMaynard Scarborough, President, APCAA
When developing a Centennial experience as complex as ours, structure, competence, and delivery are essential components to our success. And once again, the talented members of the APCAA leadership team have scored another impressive win -- in fact, it's a win for the ages! The MVP in this latest development is Brother Sean Michael Moss who has served as the APCAA's Treasurer since April of this year.
Read on to understand how/why we have morphed into a Private Foundation, now fully empowered by the IRS's Exempt Organizations Rulings and Agreements Division:
Even though we will celebrate our Centennial in January 2024 -- a considerable amount of energy is being spent on preparing the APCAA for post-Centennial viability. One major part of that strategy includes the recent reconstitution of our association from a "public charity" into a "private foundation." So that all Brothers are fully informed and speaking internally with an identical understanding, it should be noted that the primary motivator to modify our status with the IRS derived from an awareness that unlike our 2015 campaign to endow the fund at Morehouse and construct the Obelisk, Morehouse will not serve as the banker as they have in the past. Nearly 98% of any expenditures related to our Centennial Week and the awarding of "Centennial Scholarships" will be exclusive of the College, proper.
APCAA developers and project managers engaged with the revised 501(c)(3), pictured above l-r: APCAA Treasurer Brother Moss (Fall 1980) successfully led the APCAA Legal/Business Advisory Team, which included Brothers Aleem (Spring 1999), Smith (Fall 2004), Wells (Spring 2017), and Britton (Spring 2001). Bro. Williams (Spring 2009) was tapped to develop the newly established direct scholarship award program; Brothers Caldwell (Fall 1982) and Johnson (Spring 2009) provided 501(c)(3) reconstitution oversight; Brothers Bacon (Fall 2004) and Farthing (Spring 1982) will manage the budget and sponsorship outreach; and Brothers Sanders (Fall 1979) and Makerson (Spring 2001) will guide the programming for Centennial Week's primary event, The Great Gathering.
To that end, we needed to re-configure our non-profit status so that we are fully authorized to provide tax-deductible benefits to our contributors, directly. (Please note: even though we were already registered with the IRS to accept tax-deductible contributions in 2014, we did not solicit or accept any contributions under the APCAA banner after June, 2015.)
This next generation of the APCAA will establish the footprint for more direct engagement in managing the contributions we secure, and its subsequent disbursement. The shift to a designation of "Private Foundation" unleashes greater, more lucrative sponsor targets, and
moving forward, we will have not only have the ability to receive tax-deductible donations from corporations and individuals, we are now able to receive similar contributions from bequests, devises, transfers of gifts, and retirement and family trust type giving. This type of new giving supports our newly established direct scholarship award program which will launch post-Centennial with 13 named gifts for undergraduates at Morehouse College. Earlier this summer we announced that Brother Robert P. Williams (esteemed educator with the Atlanta Public School System) will lead the development of guidelines, etc., for this new initiative. (Please note: Nothing about the original endowment fund will change as it relates to its own investments and disbursements.)
As a refresher: We launched our 501(c)(3) in 2014 with an expressed mission of providing scholarship opportunities for Morehouse College students via the Alpha Rho Chapter Endowed Scholarship Fund. Following the accumulation of contributions to cover the APCAA expenses (website/directory, campaign materials, printing, research accounts, and construction of the Obelisk) we shifted all giving directly to the college, and they inturn managed the tax-deduction acknowledgments, etc.
To date, our Endowed Scholarship Fund housed and managed by Morehouse is valued at around $350K. But only a small portion of that amount actually reaches the pockets of students for tuition (specifically 2 students per school year at approximately $8K, each). And as we stand to make every effort to maximize the brand-value of a "centennial," we imagine we can turn this once-in-a-lifetime giving opportunity into something spectacular for our membership, and the student population we've pledged to uplift. Hence, the broadening of gift categories and direct-impact scholarships made possible by our new designation of "Private Foundation"
Even though there was some slight hesitation within the Brotherhood back in 2014 when we first received our independent 501(c)(3) designation, it cannot be overstated that our management of the tax-deduction notifications and subsequent reporting to the IRS has been without reproach ... perhaps best illustrated in the (swift) new designation issued on July 24, 2022.
Read the full August 4, 2022 IRS confirmation letter regarding the designation of PRIVATE FOUNDATION below:
Guidelines:"To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates. Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.
Every organization that qualifies for tax exemption as an organization described in section 501(c)(3) is a private foundation unless it falls into one of the categories specifically excluded from the definition of that term (referred to in section 509(a))."
So, if you're totally engaged and have followed this entire section up to this point, I will simply restate the obvious for the Brothers in the back: ALL CONTRIBUTIONS FROM THE BROTHERHOOD WILL AGAIN BE 100% TAX-DEDUCTIBLE, REST ASSURED!
ChAPterly,
EARLY AP SURVEY RESULTS for Centennial Week 2024 Attendees TREND HIGH with More Than 150 BROTHERS on Track to Attend, w/Approximately 65% of Those Expected to Fill Hotel Block
By APCAA Staff
Again Brothers -- We are looking to close the advance projection for attendance/lodging within the next few days. Our exclusive rate at a premier 4-Star downtown Atlanta hotel is currently set below the $200/night level, but the final booking rate will be subject to the complete block of rooms/suites we reserve. To that end, please share your intentions so that we can unlock the booking portal with the final rate, and distribute to the Brotherhood.
It should be noted that the only way to lock-in our exclusive rates will be via the AP portal that will follow the completion of this survey, and the off-market booking sites (Expedia, Hotels.com, etc.) will not match the final rate or have access to the exclusive amenities during your stay (Presidential Suite Hospitality keycard, wellness center, etc.) There will also be an opportunity to make consecutive room assignments for line members.
We look forward to our Centennial Fellowship -- and genuinely hope you are able to join us in 2024!
If you have not already, please take a moment to complete the survey!!!
13 REASONS WHY YOU SHOULD COMPLETE THE AP PARTICIPATION/LODGING SURVEY, TODAY:
It helps us plan efficiently for the Brothers' Only gatherings, public events and transportation;
It helps us negotiate primo hotel rates;
It costs nothing to survey back your intentions -- no deposits are required!;
It helps us map out seating arrangements/lodging for lines to be grouped together;
It helps us budget wisely and set reasonable per/person packages;
It automatically enters you into the "CENTENNIAL 🔥 FIT CONTEST;"
It lets us know how many Number 1-3s are attending so we'll know how many step stools to order for the group photo;
It gives us a heads-up on the need for open or cash bars;
It lets us know how to schedule visits to "The Lounge";
It will help dispel the myth that MLK was initiated at Alpha Rho;
It will remind you that The Alpha Rho Centennial Week Revolution will not be televised!;
Well, actually, some sessions will in fact be live-streamed, but the previous disclaimer just hit right!;
It ain't that complicated.
For Your Consideration ... Here are the Survey Results, to Date:
Leading the pack in Brothers attending: Preeminent 19 (6.6%), Synergistic 22 (5.9%), Indomitable 19 (5.9%), APotheotic 21 (5.1%), and Intrepid 25 (4.4%).
In the "Line Number" category, it looks as though Centennial Week will be crawling with "Lil Brothers" ... specifically, the front of the line contingent ... 🤷♂️
