July 7 Meeting Minutes

Introductions/Approval of minutes

  • Meeting called to order at 6:37pm with 10 people in attendance.
  • Jim moves to approve June minutes, approved unanimously.

Treasurer report

BANK STATEMENT

July 1, 2022

Heritage Credit Union

Current balance: $16,570.77

Our checkbook is balanced at: $16,586.58

The difference is $15.81, the cost of the officer’s ZOOM meeting June 21. 

PENDING LIABILITIES

Butterflies to be installed,   $3,090.

Festival rainout fund,  $6884.

Tax liabilities, $???

Attorney fees, $???

Other ordinary expenses.

UPDATE!  JULY 6. 

EPNA received Festival contributions and vendor fees of $1,150. EPNA also found, closed out, and transferred $6,000 from a former account at Associated Bank. And the Zoom billing got posted.

This yields a balance of $23,720. 77. Less pending liabilities of;

Butterflies to be installed,  $3,090.

Festival rainout fund,  $6884.

Tax liabilities, $???

Attorney fees, $???

Other ordinary expenses.

Remaining balance is about $13,700.

BANK CHANGEOVER.

Connexus Credit Union has sent me a booklet outlining the steps needed to adjust our account to their system. Connexus is the credit Union which purchased / merged with Heritage Credit Union. 

The changeover occurs in July.  The Heritage debit card will cancel / cease as of August 1.  The Heritage checks are good through August of 2023.  The replacement debit card had a bit of a problem. It was marked as Catherine Shannon Eken Park Neighborhood Association.  The person formerly known to EPNA as Catherine Shannon no longer legally exists.

The very helpful manager over at Heritage is working on the debit card for us.

TAX LIABILITY

EPNA had income in 2021, 2019, and 2018.  We may have to pay taxes on that income.   EPNA is NOT a tax exempt entity.  Charlie and I spoke with an attorney recently about EPNA’s tax status.

The good news, nobody on our end is going to go to jail for tax evasion.  We will suggest that we apply for 501(c)(3) tax status as a charitable organization.  This will almost certainly mean changing our bylaws and our nascent “giving policy” to conform to  IRS rules.

The bad news, we might owe serious amounts in back taxes and penalties. WE DON’T KNOW ANY DETAILS YET!  That is why the officers will ask to spend some money on consulting with the attorney, Scholz nonprofit law.  This would be to both sort out any back taxes and maybe get filed with the IRS as a tax 

Note: Our filing with the state each year has nothing to do with tax status.  It is only to create EPNA as a corporate entity to shield members and officers from liability.

From irs.gov:  

Brief definition of a tax exempt organization.

https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations

A slightly more detailed definition of a “charitable” organization.

  • Ben Shannon was informed that a former EPNA bank account had money in it.
    • $6,000
    • Old account is now dormant and will close in 6 months.
  • We may owe back taxes.
  • We should consider becoming 501c 3 or 4 going forward to limit our tax liability.
    • Jim moves to authorize the EPNA officers to spend up to $1500 to hire an attorney to evaluate our tax situation and potentially advocate for us to become a non-profit organization. 
      • Seconded by Ben. 
      • Motion passed unanimously with 9 ayes.

Committee Reports

Festival

  • $250 raised at recent beanie baggie event.
    • Free wine
  • Next event July 20 North St. Cabaret.
    • North Side Heat
    • $10 cover
  • Volunteers needed to flier the neighborhood a couple weeks before. Email Kaitlyn if interested.
  • Festival committee has raised ~$4k.
  • Bands lined up for festival.

501c3

  • Several members expressed concerns about becoming a 501c3 as it would limit our ability to make statements regarding policies or legislation affecting the neighborhood.
  • Several members stated we would need to rewrite the bylaws in order to become a 501c3.
  • 501c4 would allow us to engage in more political behavior, but we would not be eligible for tax deductible donations.
  • We will refer these questions to the attorney.

Alder Updates

  • Alder absent

Open Comments

  • Sarah B sent an email to officers expressing concerns that her efforts maintaining greenspaces are not appreciated. Jim responded.
    • A member expressed concern that the chair of the greenspace committee does not communicate well with EPNA members or officers.
    • Chair of greenspace committee has expressed frustration to a present member regarding the feedback about how he maintains greenspaces.
    • A member expressed concern that other neighbors maintain other greenspaces in the neighborhood without coordination or direction with EPNA/greenspace committee.
  • A member asked if Syed Abbas is still their Alder. Although the Common Council district maps recently changed, Eken Park still falls within that district.

Jim moved to adjourn, seconded by Charlie, unanimously approved and meeting adjourned at 7:29pm.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: