So we are no longer going to be a part of National?

You are still a part of National. The easiest way to think of this is to understand that every nonprofit is "recognized" by their State, and by the IRS. Therefore, a nonprofit typically files paperwork with the state and with the IRS. Here, you are going to file the state paperwork, but National has done the IRS paperwork for you. From the IRS's viewpoint, National is one umbrella organization with 120 (give or take) chapters. From your State's viewpoint, each chapter is separate.

How does my event benefit from National getting a GEN?

PPP's National Board of Directors decided to take this step because it gives you:

• Legal Protection. Right now, if Anytown USA Pagan Pride got sued, the Plaintiff could take your money too. All the "assets" belong to one corporation - National. Our last tax form says "National" grossed $60,000. "National" in reality got about $300 to pay website expenses and State registration-related fees. $60,000 just the total of the 120 events. But whatever is left of that $60,000 (which isn't much, really, but it's more than National has) is up for grabs if any one of you gets sued. All your local event bank accounts are at risk. The GEN breaks that up. So if one event folds under a lawsuit, the entire Project won't be affected.
• More accountability to your community, which they will appreciate. They have a Board instead of a sole LC to go to when they have suggestions or requests for changes.
• Easier turnover, because when one LC quits, other experienced LC's stay behind. And you don't have to worry about training a newbie.
• Multiple people able to access the money, which is always a good thing.

National is already a nonprofit. Why should I have to do any paperwork at all?

The IRS requires each chapter to have its own Articles of Incorporation to get a GEN number.

So now I have to do all the paperwork that I was supposed to be able to avoid by joining National?

No, you only have to do some of the same paperwork you would have otherwise done. You have to incorporate with the state. That involves filing a one page (or so) document with the state and paying a fee (usually $10 or $20, but some LC's have reported significantly higher fees, like $100). You do NOT, however, have to apply to the IRS for charity status. That is a 30 page application and a $150 (or $500) fee. Being part of a "GEN" basically means this step is done for you.

I don't have time to do handle a whole bunch of new paperwork.

Incorporating, filing the state paperwork, will not take long, and the benefits are worth the time invested. This will take less time than getting city permits or insurance. And these steps probably make it easier to get city permits and insurance. This is also why we are doing this in February, before you really have to start doing massive work to put on your events. You can always ask Brian for help if you need it.

I thought the whole point was that we were all going to be "one" under National's umbrella, did I miss something?

You are under National's umbrella from the IRS standpoint. But the IRS requires that you register with your state as a corporation separate from National. You also need to get your own EIN, but this EIN will be listed with the IRS as a part of National's charity status. This is also good from a legal standpoint, it provides everyone involved with PPP additional protection.

So do I have to incorporate?

Generally, yes, you have to incorporate in your state. You can be an unincorporated association in some states, but not in others (see below). But you don't have to fill out the 501(c)3 application and spend the $500 to be nationally recognized as a Non-Profit corporation. Joining a GEN is a substitute for applying for 501(c)3 status with the IRS. Local chapters in the GEN don't have to do that.

Why do I have to incorporate? Why isn't joining the GEN enough?

Because the IRS requires chapters to incorporate. But also, incorporating prevents the people who run the event from getting sued as individuals if something happens at your event. If someone gets hurt, and you have incorporated and done all the other things you are supposed to do, then an injured person can only sue the event, not you. Basically, incorporating protects your house (if you own one) and your own money.

Am I done after filing all this paperwork?

No. There are other things you need to do to maintain the Corporation, like have semi-annual Board of Directors meetings, electing Officers, keep good minutes, and not commingling personal money with event money.

We are too small to incorporate!

Some events are really small, and the risk of something happening at their event that would lead to a lawsuit is low. But the risk is never zero. This process will not take long, and it might be worth it someday. Also, you can rent a city park in the corporation's name instead of your own.

I thought National was incorporating in one state and everyone else was filing as a local entity of an org incorporated in X state.

Not exactly. Everyone else will be a local entity of the larger National organization, from the IRS's standpoint. But this still requires every event to incorporate with the state. See the first FAQ on this page for an explanation.

So, not only does each event need an EIN, we must also incorporate in our state?

Yes. But you do not have to apply for charity status with the IRS. Being part fo the GEN allows you to bypass that step. Trust me when I say that this step is much longer and harder than getting an EIN and incorporating with the state.

I sent our paperwork to Brian. Were we also supposed to file incorporation papers with our state?

Preferably, yes. National allowed you to have an option of being an "unincorporated association." Some states allow unincorporated associations to have the same legal protections as corporations. But some do not. You might find the answer on your state Secretary of State or Department of Corporations website. If in doubt, ask Brian, or just incorporate. Incorporating and maintaining the corporation are the best way to get the legal protection you need.

My state asked me if we are a Sole Proprietorship, a Tax Exempt Organization, or as Limited Partnership/Limited Liability Partnership. Which are we?

Tax Exempt Organization.

So incorporating does not give us charity status?

No, it does not. You will incorporate with the state as a nonprofit, but that does not actually prove to the IRS that you are a nonprofit or that you deserve to be exempt from corporate tax. Again, think of two angles: the state angle and the IRS angle. You still have to show the IRS that you will operate as a charity, by completing their 30 page application, unless you join the GEN. If you are part of the GEN, the IRS accepts PPP National's representation to the IRS that you are operating as a charity.

So we can no longer use PPP's 501(c)3 status?

Our 501(c)3 status is our charity status, and yes you are using National's charity status. You just are forming your own corporation and getting your own EIN. But after that, you still use National's charity status and bypass the IRS application.

So we can no longer use National's EIN?

You are supposed to stop using National's EIN and get your own, but this only takes a few minutes. See GEN paperwork and SS-4 answers.

How do I fill out Form SS-4?

Answers are posted here.

The IRS website for getting an EIN wants my Social Security number and I do not want to give it.

If you fill out Form SS-4 and then call the IRS, instead of using the website, I don't think they ask for your SSN.

We already have our own EIN.

Great! You've done half the work.

My event also already incorporated. Do I have to do anything more?

If you have NOT applied to the IRS for charity status, then send Brian the corporate paperwork and the consent to join the GEN so you can be part of National's GEN, using National's 501(c)3 status.

My event already has 501(c)3 charity status. What do I do?

If your event, or the group that sponsors the event, has a letter from the IRS that gives your event an "initial determination of 501(c)3 exempt status" or a "final determination of 501(c)3 exempt status", then you do not need to do anything except send certain information to Brian for National's records. See this page for the info you need to send.

Another organization sponsors our PPD. What do I need to do?

Most likely, National will declare you an affiliate and you will have to do nothing. But you need to write to your RC and Brian to inform them of the details about who sponsors your event and how, so we can figure out how best to set it up. Some events only receive money from their sponsoring organization, and therefore have formed their own corporation to accept the money and run the event. Other organizations have been willing to assume legal responsibility for the PPD event (for example, by signing for their insurance policies and renting space for them).

I thought that for separately incorporated events joining the GEN was optional?

Separately incorporated events who HAVE done paperwork with the state, but have NOT applied for charity status from the IRS, should join the GEN. That way, you do not have to apply to the IRS, because we've done it for you. They should note that they have already done steps one through four on http://www.paganpride.org/lc/GEN.html, so they should just send me their Articles of Incorporation (with the state stamp on them) along with the form required in step five.

Separately incorporated events who HAVE applied for charity status from the IRS, and have received a "determination" letter from the IRS, would have to rescind that to join the GEN. It is easier to just remain the way you are. You already have your IRS charity status. So events with IRS letters should not join the GEN and should do nothing in this process except send Brian their info by using this webpage

The GEN is what gives you your IRS "tax exempt" status, if you do not alreadu have it.

I only have one LC, and no one else has stepped up to be co-LC?

The National Board approved a plan to allow neighboring events to band up and form one Board and one Corporation. If you are having this problem, *please* write to your RC, Brian, and your neighbors. Your neighbors might be willing to help you by including your event in their Corporation.

We only have two LC's and our state requires 3 to incorporate. What do I do?

You can band together with another event in your state (see the answer above this one), be an unincorporated association (but this is not preferred, because it might give less legal protection, as outlined above), or find a third volunteer to be a Director.

Should all our officers/Directors be LC's?

Eventually, yes. But we will request that they apply to be LC's at some later time, not now.

How many people do I need on my Board of Directors?

National requires at least two, one a President, one a Treasurer, so that no one person has total control of the event funds. Your state might require more than 2. Pleaser check Secretary of State or Department of Corporations website for this answer, or ask Brian for help.