Additional 501 (c) 3 answers from a professional in the field

Supporting information regarding becoming or adding a 501(c)3 organization:

From the report available below

Note also that audit costs generally begin at around $5,000 annually for small organizations.
This would be in addition to the $15,000 compliance costs referenced above.

It is my recommendation that if you’re not looking at a minimum of $100,000 in real dollars contributed annually, this will not pay off appropriately for the organization.

Additional information about requirements for compliance with the rules for 501(c)3 organizations from Lawyers for NonProfits.

Moving the TEAE Bank Account

The Board of Directors of TEAE approved the move of our Wells Fargo bank account # 6100708459 from the Alexandria, VA branch to M&T Bank.

Also approved the removal of James Lindner (Past President)  and Steve Murphy (Past Treasurer) from the account and the addition of Todd Reid (current Treasurer) and Kathryn McConlogue (current President) to the account.

Contact information for all are below.

Todd Reid
331 Old Bailey Lane
West Chester, PA 19382
(610) 730-6697

Kathryn McConlogue
820 Fishing Creek Valley Rd
Harrisburg, PA 17112
(443) 255-3401

Jim Lindner
1832 Duffield Ln
Alexandria, VA 22307
(703) 329-1763

Steven Murphy
4005 Harris Place
Alexandria, VA  22304
(703) 499-4886

Submitted by
Barbara Blue
Secretary

Bylaw and Procedures 2024 drafts

These changes were approved by the Membership at the Annual Meeting on August 16, 2024

One of the action items from the 3-Year Planning Committee was to update the club bylaws and to extract items which could be better handled in a Policies and Procedures manual. 

Revisions to the bylaws must be approved by vote of the membership.

But Procedures, such as how late membership renewals and other housekeeping activities are handled, do not require membership vote, only approval of the board. It is intended that this written document will help in transition of new leadership.

In support of this project and in preparation for the meeting, please review the three documents below:

  1. Summary of Changes to the Bylaws. (This is easier to digest)
  2. Revised Bylaws
  3.  Draft Procedures Manual. This is very much a work in progress and will require input from several others in the leadership of the club. 

Procedures Manual

Proposed new TEAE logos

Taking into consideration the conversation at the last board meeting about the TEAE logo, Kerch met with the designer and was able to put together the two most popular options into two different layouts.

The horizontal view can be used on the RootesReview,  mailings, and other appropriate places. The vertical one will be excellent for hats or T-shirts or whatever else we choose to make available as part of the Regalia.

As it seems there was consensus around these two concepts, these designs are offered for approval by the board and to be put into use there upon.

The designer has submitted a bill for $500.

TEAE is not a 501 (c) 3 organization

We are a 501 (c) 7: A social club … organized for pleasure, recreation, and other similar purposes.

Please may we put to bed the conversation about making TEAE into a 501 (C) 3.

We do not qualify according to the IRS rules.

The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.

IRS: Exempt organization type

Further

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), 

IRS: Exemption trequirements

We are none of these things.

Any other car club that is a 501(c)3 is so most likely because they have members able to support approved purposes, most likely educational – e.g. volunteering to teach British car maintenance at a local high school —  or because of some fund raising for a different cause.

Support for a local entity is not likely given  our widely dispersed group.

Most importantly, we are putting the cart before the horse!

Instead of looking for ways to make it easy for people to give us money, we need to look for ways to support charitable causes, or at the very least support young people getting into old cars. Then if we find that we are doing some good things, we can reconsider whether reclassifying our tax status makes sense.

Posted by Kerch McConlogue
2/7/2024

Please add comments below

Putting on a BASH

rootes-bash logo

TL;DR
Where ever two or more Rootes fanatics are gathered in the TEAE name, it counts as a BASH!

This is Appendix B supplied to Regional Reps about a BASH

Any gathering of Sunbeams/Rare Rootes can be termed a BASH in your promotions, and you should use this term.  Some events are limited to gathering of two or three cars at a meeting place, where the entertainment is limited to conversation; some can be more extensive including a prepared drive or rallye, meals, tech sessions like a carb rebuild, fix-ins where a member’s car in need is addressed.

Consider partnering with an already established event like a British Car or other type show. Ask their organization to promote the BASH concept. Ask them to promote the BASH, a gathering of Rootes vehicles. Giveaways like TEAE magnets, or water bottles, etc. are available at a nominal cost.  Each region has a TEAE banner to put on display. Updated brochures to hand out to prospective members will be distributed.  Contact the membership chairman.

The key to a successful event is in the planning.  Leave yourself enough time to get organized. For anything more ambitious than a cars and coffee, consider enlisting an accomplice. For planning purposes, you can use the roster sorted by region available on the website here: https://www.teae.org/downloadable-rosters/.  You can get an up-to-date list of members and their contact information for your region and contiguous regions by requesting it from the membership chairman.  Until your region has coalesced into a community, you may find that people ignore email communications. We encourage phone contact to establish a rapport.

You will be busy during the day of the event so enlisting help for some tasks is a good idea for a larger event:

  • Organizing parking
  • Registration (when participants pay a fee to enter)
  • Photographer (need not be a pro; your event report will be better with photos of people & cars – preferably action or candid shots, not portraits, and in)
  • Organizing food and drink (coffee for early arrivals – lunch later)

Connecting with a larger car show is a good way to get exposure for the Marque and an easy way to put on event.  For the more informal shows, just meeting together at the show will probably allow you to park together. For larger shows where cars are organized by Marque, you should contact the show promoter to ensure that there is an area designated for your group. And don’t forget the club banner.

Some of the more active car clubs sponsor events on a weekly or monthly basis, often a cars and coffee. During the off-season when our cars may be hibernating, a social get together for a meal or conversation at a member’s home or local restaurant.  For example, the UK Hillman group sponsors a monthly pub night.  This is another way to build community.