[QCWA Hotlist] Fwd: Chapter 5 - Opening Up A Bank Account

[Doug Crompton]

Forwarding the below comments for further comments from the group at large.
Please include my email in any comments.


*73 Doug*

*WA3DSP*

*http://www.crompton.com/hamradio <http://www.crompton.com/hamradio>*

---------- Forwarded message ----------
From: <ve6afo at telus.net>
Date: Fri, Mar 24, 2017 at 11:15 AM
Subject: Chapter 5 - Opening Up A Bank Account
To: doug at crompton.com
Cc: ve6afo at telus.net


Hi Doug,

In that all chapters have their own autonomy, QCWA International has never
really given much thought as to how a chapter would go about securing a
bank account. Of course, there are many ways of doing this. Some chapters
have actually gone as far as incorporating as a not-for-profit 501(c)(3)
organization, which in my mind, is way too much work, and annual tax
filing, just for a chapter to meet and have fun!!

According to the below link, yes, a tax ID will be required to open up an
account.

http://smallbusiness.chron.com/banking-rules-non-profit-
organizations-829.html

Here in the province of Alberta, we have a bank (Alberta Treasury Branch)
who has what they call a "Community Spirit" Account for small clubs. All
that is needed is for them to be registered as a not-for-profit
organization with the Alberta Societies Act. (free). A set of By-Laws are
required, and that is it. At this bank, the bank account is not charged any
monthly service fees, like some banks do.

I have received e-mails from some chapters who dissolved because they could
not afford to pay as high as $18/month for banking fees. Well, that is
crazy for a small chapter. Personally I would not have dissolved the
chapter, but found a bank that would play fair.

So, because Chapter 151 is in Alberta (I am the president), the chapter
members decided from the onset that they did not want to incorporate. We
have no By-Laws. We were Charted on May 18, 1984, so we have been around
for some time. However, I was fortunate to know a banker who opened up an
account in a Credit Union, and we are not charged any monthly service fees.

So in this regard, we do not have any liability insurance, because I do
believe an insurance company would want to deal with an identity (an
incorporated organization) rather than a couple of individuals who want to
get liability insurance for a Field Day, etc. In this regard, we do not
have any insurance, though we sure thought about all the problems we could
have had when we hosted the QCWA International Convention - 2006 in
Calgary, AB. I am glad no liability issues surfaced!!!

What I would do, to see if you could get some other ideas from other
chapters, is to send the same questions (what you asked, below, which are
all very valid comments!!) to the Chapter Officers who are all subscribed
to the QCWA Hotlist. That e-mail address is;

qcwahotlist at mailman.qth.net

73,

Ken Oelke, VE6AFO

At 06:55 PM 3/22/17, Doug Crompton wrote:

Ken,

  A long time for a response to your last email but Our chapter is in the
process of reforming and I am the interim Treasurer. Does QCWA have any
recommendations for treasurers? That is setting up accounts etc. This would
be in the US in PA. I imagine we have to incorporate in the state and get a
tax ID number in order to get a bank account?  I know there are many
chapters out there and I was just wondering if there was any general
guidance on this.

Also what about insurance for a chapter. Liability for meetings, events,
protection of funds, etc. What constitutes an event that would need
protection. What are other chapters doing in this regard. I am told that if
an event is planned like Field Day and we don't call it an organized event
of our QCWA chapter then we are not liable but it is a fine line. In my
mind If we advertise it even in just emails to the chapter then it is
organized.

It would be great to have
​your​
​ thoughts on this or maybe you can pass it to someone else for further
comment.





*73 Doug WA3DSP http://www.crompton.com/hamradio
<http://www.crompton.com/hamradio> *
On Thu, Dec 29, 2016 at 10:11 AM, <ve6afo at telus.net> wrote: Hi Doug, A QCWA
chapter has it's own autonomy, therefore, a chapter would have to apply for
it's own tax exemption. Usually small clubs, like QCWA chapters, would not
need to worry about tax problems and tax exemptions, unless you are looking
to avoid paying a tax on purchases? In this regard, and I am no expert on
tax law, but I believe the chapter would have to be incorporated as a
not-for-profit organization. At 10:08 PM 12/28/16, doug at crompton.com wrote:
 Question - do contributions directly to a local chapter come under the
QCWA tax exemption?


73, Ken Oelke, VE6AFO President, Quarter Century Wireless Association, Inc.