[MR] High Table Guests

[Alan MacNeill]

Blame the IRS, and blame our BoD who is probably being overly cautious
in regards to how they follow their interpretation of the regs.

There is a significantly complex area of tax law called "Inurement",
basically, it says 501c3 orgs, such as ourselves, can't spend any
money for the private benefit of a person (it's far more complex than
that, but that's the gist of the rule).

Some "benefits" are acceptable, but they need to be directly tied to
the purpose of the organization, not excessive, and about a dozen
other tests.  Comping the King, Queen, and Baronage is acceptable, as
we define it in event policies in advance, they are providing
indespensible services to the event (playing the role of
"Royalty",without which our simulation of a Court just doesn't work),
and isn't excessive.

Feeding the random guests of the King and Queen could (I am not a tax
lawyer, the BoD has gotten guidance from such people in the past) be
perceived as such.  It could also be seen as negligible and therefore
not an issue, but it is appropriate for folks to be taking cares to
make sure they are clearly on this side of the line.

Lacking guidance from the BoD on if comping High Table is acceptable
(which, so far as I know, they've never said one way or the other), I
can see rational folks saying that they should collect feast fee from
those eating.  I can also see rational folks saying it's not
important, but I can see the IRS disagreeing.

Once again, mundane life infringes on our game...whatcha gonna do?

On 8/19/07, Syr Justus de Tyre <atlantianbard at yahoo.com> wrote:

> I honestly cannot even believe that this is in question.