MSA Discovered to be Allowed to Use Up to 20% of Its Budget for Lobbying
Sent to MSA Reps on 4.8.2005
Dear MSA Reps,
On Tuesday MSA Rep Mat Brener had informed all of the MSA reps that
not only was it possible for MSA to use 20% of its funds for lobbying
efforts with the 501h election, but that he had talked with one of
MSA's accountants at UM and found that we had been using this option
for a number of years. In fact, Students for PIRGIM had found that
this information is actually public knowledge, as MSA's tax forms are
available online through a website: <www.guidestar.com>. By setting up
a free account, you may search for MSA's form 990's (the form that
nonprofits file for their taxes each year) from past years. I have
instructions at the bottom of this email to access this information
online, as well as a pdf file of the 2003 taxes attached.
Groups can file for 501h election just once by filling out a form
5768. After form 5768 is filed, the group files as an electing public
charity in form 990. The area of the form 990 for the 501 h election
is on page 11 of the 2003 pdf file, part VI/A. You can see for
yourself that MSA has quite clearly filed as a 501 h electing
nonprofit.
In researching this last night, we stumbled upon something interesting
on 2003 fiscal year's taxes. As 2003-04's acting Treasurer, Mr.
Elliott Wells-Reid had filed MSA's taxes using the 501 h election.
While Mr. Wells-Reid's printed name is partially blackened out
(probably for privacy reasons), the letters "ID" of his last name are
viewable, as is Mr. Wells-Reid's signature, and the date and the title
of Treasurer.
For the new reps who may not be familiar with this case, Mr.
Wells-Reid originally brought this case to trial before CSJ, claiming
that funding Students for PIRGIM would threaten MSA's tax 501(c)3 tax
status, assuming that MSA was a non-electing nonprofit. As seen on
page 11 of the pdf file, MSA clearly has used the 501 h election,
allowing MSA to use up to 20% of its expenditures for lobbying.
Further, above Mr. Wells-Reid's signature is this statement:
"Under penalties of perjury, I declare that I have examined this
return, including accompanying schedules and statements, and to the
best of my knowledge and belief it is true, correct, and complete."
To be clear, I am not claiming that Mr. Wells-Reid was dishonest in
his concern over MSA's tax status, or that in signing the tax forms
last year, he did so with a thorough knowledge of 501(c)3 tax law that
some of us possess now due to the issues with this case. However, it
again shows the baselessness of these charges, very serious charges,
which, given his previous role as Treasurer and his initiative and
responsibility in bringing the case forward, Mr. Wells-Reid should not
have overlooked.
Because of this new information, an appeal should take place by the
end of the year, or at the very least, CSJ's previous ruling should
not be enforced. Within CSJ's code is the option to file for a Stay
of Enforcement. If a party waiting on an appeal requests, CSJ can
decide not to enforce their previous ruling until an appeal can take
place. Only two of the ten CSJ justices are needed for this stay to go
into effect. Students for PIRGIM will be filing for a stay soon, and
we hope that MSA leadership will join us in doing so, as well.
Sincerely,
Rese
INSTRUCTIONS FOR VIEWING MSA'S TAXES ONLINE
Go to www.guidestar.com and create a free account. Log in.
Once you are logged in you are directed to a page that allows you to
search for nonprofits. Type in Michigan Student Assembly, and a link
for MSA should pop up. Click on it.
On the left hand side there is a link to form 990. Click on it.
You can then view pdf files of MSA's tax forms from fiscal years 1997-2003.
Dear MSA Reps,
On Tuesday MSA Rep Mat Brener had informed all of the MSA reps that
not only was it possible for MSA to use 20% of its funds for lobbying
efforts with the 501h election, but that he had talked with one of
MSA's accountants at UM and found that we had been using this option
for a number of years. In fact, Students for PIRGIM had found that
this information is actually public knowledge, as MSA's tax forms are
available online through a website: <www.guidestar.com>. By setting up
a free account, you may search for MSA's form 990's (the form that
nonprofits file for their taxes each year) from past years. I have
instructions at the bottom of this email to access this information
online, as well as a pdf file of the 2003 taxes attached.
Groups can file for 501h election just once by filling out a form
5768. After form 5768 is filed, the group files as an electing public
charity in form 990. The area of the form 990 for the 501 h election
is on page 11 of the 2003 pdf file, part VI/A. You can see for
yourself that MSA has quite clearly filed as a 501 h electing
nonprofit.
In researching this last night, we stumbled upon something interesting
on 2003 fiscal year's taxes. As 2003-04's acting Treasurer, Mr.
Elliott Wells-Reid had filed MSA's taxes using the 501 h election.
While Mr. Wells-Reid's printed name is partially blackened out
(probably for privacy reasons), the letters "ID" of his last name are
viewable, as is Mr. Wells-Reid's signature, and the date and the title
of Treasurer.
For the new reps who may not be familiar with this case, Mr.
Wells-Reid originally brought this case to trial before CSJ, claiming
that funding Students for PIRGIM would threaten MSA's tax 501(c)3 tax
status, assuming that MSA was a non-electing nonprofit. As seen on
page 11 of the pdf file, MSA clearly has used the 501 h election,
allowing MSA to use up to 20% of its expenditures for lobbying.
Further, above Mr. Wells-Reid's signature is this statement:
"Under penalties of perjury, I declare that I have examined this
return, including accompanying schedules and statements, and to the
best of my knowledge and belief it is true, correct, and complete."
To be clear, I am not claiming that Mr. Wells-Reid was dishonest in
his concern over MSA's tax status, or that in signing the tax forms
last year, he did so with a thorough knowledge of 501(c)3 tax law that
some of us possess now due to the issues with this case. However, it
again shows the baselessness of these charges, very serious charges,
which, given his previous role as Treasurer and his initiative and
responsibility in bringing the case forward, Mr. Wells-Reid should not
have overlooked.
Because of this new information, an appeal should take place by the
end of the year, or at the very least, CSJ's previous ruling should
not be enforced. Within CSJ's code is the option to file for a Stay
of Enforcement. If a party waiting on an appeal requests, CSJ can
decide not to enforce their previous ruling until an appeal can take
place. Only two of the ten CSJ justices are needed for this stay to go
into effect. Students for PIRGIM will be filing for a stay soon, and
we hope that MSA leadership will join us in doing so, as well.
Sincerely,
Rese
INSTRUCTIONS FOR VIEWING MSA'S TAXES ONLINE
Go to www.guidestar.com and create a free account. Log in.
Once you are logged in you are directed to a page that allows you to
search for nonprofits. Type in Michigan Student Assembly, and a link
for MSA should pop up. Click on it.
On the left hand side there is a link to form 990. Click on it.
You can then view pdf files of MSA's tax forms from fiscal years 1997-2003.
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