Hello,<div><br></div><div>I am not promoting establishment of a Koha foundation under U.S. tax laws in preference to incorporation in some other country, but with respect I believe some of the concerns about use of the U.S. IRS 501-c-3 status are not entirely accurate. I have some experience in that area having established several 501-c-3 organizations including most recently a library foundation in 2009. While it certainly does take some time to gain that status the process is not inherently difficult, simply detailed and time consuming. The terms "public charity" and "private foundation" have particular meanings in tax law, primarily related to their sources of funding, but either is a fully tax-exempt organization. Probably the funding sources of a Koha organization would lead to its having the status of a private foundation. Any 501-c-3 is also incorporated in a U.S. state as a not for profit corporation, an extremely simple process.</div>
<meta charset="utf-8"><div><br></div><div>An association is really not a meaningful legal term, so a Koha Association could in fact be legally established as a foundation. The distinctions in governance and control that are of obvious concern would depend upon the bylaws and some details of the 501-c-3 application, rather than than either its name, or its legal status as a charity or foundation. I understand that there are connotations to words that might make the Koha community more comfortable with a particular name for the organization. That would present no obstacle to the 501-c-3 process.</div>
<div><br></div><div>I repeat that I am not personally expressing any preference for the country in which the organization would be incorporated. I have confidence in the Koha community being able to come to a good decision on that in the process that seems to be underway.</div>
<div><br></div><div>Jim Minges</div><div><br></div><meta charset="utf-8"><meta charset="utf-8"><meta charset="utf-8"><div><br>-- <br><br>"NEKLS and its member libraries are leaders and innovators in providing exemplary library services."<br>
<br>Jim Minges, Director<br>Northeast Kansas Library System<br>4317 West 6th Street<br>Lawrence, KS 66049<br>Phone: 785-838-4090 FAX: 785-838-3989<br><a href="mailto:jminges@nekls.org">jminges@nekls.org</a><br>
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