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<font face="Helvetica, Arial, sans-serif">Oh, wow. <br>
That's something new, but the way I read it, there are two, or may
be even three options:<br>
<br>
1. A chapter leader runs for ISOC Trustee and (s)he is not
elected. Nothing to do here. <br>
2. </font><font face="Helvetica, Arial, sans-serif"><font
face="Helvetica, Arial, sans-serif">A chapter leader runs for
ISOC Trustee and (s)he is elected. Options:<br>
2.1. (S)he steps down from the chapter leadership role (as per
Andrew's email)<br>
2.2. (S)he doesn't step down, but the chapter discontinues
getting *any* funds from ISOC<br>
2.2.1. </font></font><font face="Helvetica, Arial, sans-serif"><font
face="Helvetica, Arial, sans-serif"><font face="Helvetica,
Arial, sans-serif"><font face="Helvetica, Arial, sans-serif">(S)he
doesn't step down, the chapter continues getting - at some
point in the next three years - some funds from ISOC. The
statement of interest is declared by that Trustee (correct
me if I am wrong, but this should not be CoI, Conflict of
Interest, as the Trustee is not the one, who decides what
money ISOC gives to what chapter), and ISOC risks a
potential check by the IRS, and may be an audit.<br>
<br>
</font></font>Just to put this in perspective - if that rule
existed few years ago, some of the Trustees would have never
made it to the BoT (unless they would give up their chapter
leadership position), and this would be unfortunate. I may be
wrong, but I remember a lot of chapter leaders, who have served
on the Board, starting with myself. <br>
<br>
But, Andrew, you are not saying that this is the only possible
way; you actually said if a chapter leader is a Trustee, that
puts extra burden on ISOC in case it is to be audited by the
IRS. An audit doesn't mean ISOC is doing anything wrong, or that
the chapter leader cannot be a chapter leader; it seems like by
asking the chapter leaders to make that choice, you're just
making it easier on ISOC with regards to a possible audit. And
it's a possible audit, right, it's not that there's a "must
audit" in this case? Because the IRS might investigate, and find
out that, well, it's normal for a small country in Asia, LAC,
Africa or Europe, to actually get $ 2,000 from ISOC as
administrative support, and that does not threaten the tax
exempt status of ISOC (the 501(c)(3) that you quote), right? <br>
<br>
Further to that, in some cases ISOC chapters don't have
'officers', as in the US legal world. They may not have a
"president/ceo", but just a chairman of the board. These could
be non-paid positions, and there's a difference between the
responsibilities of board members, who are compensated for their
work, and those, who work pro bono. <br>
<br>
<br>
Kind regards,<br>
v/ <br>
<br>
</font></font>
<div class="moz-cite-prefix">On 11/5/20 12:48, Andrew Sullivan via
Chapter-delegates wrote:<br>
</div>
<blockquote type="cite"
cite="mid:20201105174845.kmqc6lhpzpafgk6m@outlook.office365.com">Hi,
<br>
<br>
I will leave the discussion about why the CoI rules for the Board
are as they are for the Board, because it is a governance issue.
But there is a straightforward tax answer to the question below: <br>
On Thu, Nov 05, 2020 at 01:56:39PM -0300, Flávio Rech Wagner via
Chapter-delegates wrote:
<br>
<br>
<blockquote type="cite">And I am very surprised to know that
Chapter leaders should not serve as Trustees. This does not make
any sense. Chapters elect four Trustees exactly to bring their
perspectives to the Board, and their leaders are the persons
that best understand and represent those perspectives.
<br>
</blockquote>
<br>
Chapters are, legally speaking, separate organizations from the
Internet Society (i.e. the corporation incorporated in the
District of Columbia in the US). The US Internal Revenue Service
requires that Trustees disclose, in the annual 990s we file with
them, any case where they have an interest in another organization
that receives money from the Internet Society. In principle, any
Chapter can be in receipt of money from ISOC because of the admin
fund, because of the money that flows through the Internet Society
for Beyond the Net, and because of the Chapterthon. If an officer
of a Chapter were to be in a Chapter that receives any of that
money, then we would have to report it to the IRS and undergo a
bunch of additional investigation and audits and so on (because,
as an officer of such a Chapter they have a fiduciary relationship
to the Chapter and so are deemed to have an interest). It would
be a risk to the organization and our 501(c)(3) status. That is
why it is important that nobody in a Chapter leader position be a
Trustee at the same time.
<br>
<br>
That is not to say, of course, that people who have been leaders
in a Chapter should be excluded from selection as a Trustee. We
often have people who become Trustees while they are Chapter
leaders. They simply have to give one up or the other.
<br>
<br>
I hope that provides the information you need.
<br>
<br>
Best regards,
<br>
<br>
A
<br>
<br>
</blockquote>
<br>
<pre class="moz-signature" cols="72">--
Best regards,
Veni
<a class="moz-txt-link-freetext" href="https://www.veni.com">https://www.veni.com</a>
pgp:5BA1366E <a class="moz-txt-link-abbreviated" href="mailto:veni@veni.com">veni@veni.com</a>
The opinions expressed above are those of the
author, not of any organizations, associated
with or related to him in any given way. </pre>
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