Unfortunately all the members of non-profit organizations do not know the Law that regulates the personal benefits to the members.  I decided to find out what the Law states about this situation.

Here it is:

General purposes:

(1) “Non-profit corporations must expressly declare the purposes for which they are formed”.

(2) “Non-profit corporations purposes are more narrowly construed than business corporations purposes.”

(3) “The more accurate view is that a non-profit organization is one which does not allow any one to personally profit from the organization. The people most likely to profit from any organization are its insiders, that is, those who control some aspect of the organization. Thus, the primary concern of state and federal laws is that the organization cannot  be used for the personal benefit of its insiders.”

More specific:

(A) “To qualify for tax exemption as a non-profit organization, no part of income of an association whether current or accumulated, can be payable to, or otherwise available for the personal benefit of any member of the association”.

(B)  “An association that has been tax-exempt may fail to comply with this requirement on a winding-up, dissolution, or amalgamation. For example, on winding-up, such an association will lose its tax-exempt status at the time when a determination is made that an amount of income will become payable to, or otherwise available for the benefit of a member “.

(C) “Certain types of payments made directly to members, or indirectly for their benefit, will not, in and by themselves, disqualify an association from being tax-exempt.  Such payments include salaries, wages, fees or honorariums for services rendered to the association, provided the amounts paid are reasonable and no more than those paid in arm's length situations for similar services. Also included are payments made to employees or members of the association to assist them in covering their expenses to attend various conventions and meetings as delegates on behalf of the association, provided attendance at such conventions and meetings is to further the aims and objectives of the association”.

NO article defining the non-profit organizations spells out that the members are entitled to free meals  and free drinks. It is against the Law!   Any organization that does it, runs the risk of having its charter REVOKED!

So,  my dear friends, if you are  members of a non-profit organization and do not enjoy the comradeship of the other members, if you are not comfortable  working and participating in the objectives of the same organization – if you are only interested in free meals and free drinks – you should  NOT be a member of that organization!

If you place your personal interests above the aims of the organization, you are selfish and therefore a very unhappy person.

On the other hand if you enjoy the social environment with your fellow members, you get a deep satisfaction that there is no money that can buy  it!  This way you will be positive in your participation and such an attitude will contribute to your  better Social  Health. It is your choice! 

Some Portuguese American non-profit organizations have died because of the freeloaders, the parasites of the same organizations!  Unfortunately,  we find "wise guys" everywhere!   It is really a shame and a pity!

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