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Dear Ted,<br>
<br>
thank you for your follow-up on this matter. I am aware of the
special tax terms in relation to "supporting organisations". <br>
<br>
That being said, the Internet Society Foundation is a distinct and
separate legal entity to the Internet Society, irrespective of the
relationship between them. As a result, any outsourcing task
undertaken by one, for the other entity, would be defined in a
contract, whether written, verbal or otherwise. If not, there is a
lack of clarity and expectations about the relationship, which
brings potential liability and risk that both entities are subjected
to, in relation to the other's actions. Any lawyer would tell you
that it is highly advisable to have a written contract, if only for
legal protection.<br>
<br>
Thanks for letting me know that you are travelling. I am copying
President and CEO Sally Wentworth in case you're unavailable for a
length of time.<br>
<br>
Kindest regards,<br>
<br>
Olivier<br>
<br>
<div class="moz-cite-prefix">On 20/09/2024 13:12, Ted Hardie wrote:<br>
</div>
<blockquote type="cite"
cite="mid:CA+9kkMAV1GGBVv75Uw6r-k=p2qforJXN_94CfeLzWv+K-5uQDA@mail.gmail.com">
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<div class="gmail_default" style="font-size:small">Hi Olivier,</div>
<div class="gmail_default" style="font-size:small"><br>
</div>
<div class="gmail_default" style="font-size:small">A
supporting organization is a term of art in US tax law,
please see:</div>
<div class="gmail_default" style="font-size:small"><br>
</div>
<div class="gmail_default" style="font-size:small"><a
href="https://www.irs.gov/charities-non-profits/charitable-organizations/supporting-organizations-requirements-and-types"
moz-do-not-send="true" class="moz-txt-link-freetext">https://www.irs.gov/charities-non-profits/charitable-organizations/supporting-organizations-requirements-and-types</a></div>
<div class="gmail_default" style="font-size:small"><br>
</div>
<div class="gmail_default" style="font-size:small">and</div>
<div class="gmail_default" style="font-size:small"><br>
</div>
<div class="gmail_default" style="font-size:small"><a
href="https://www.irs.gov/charities-non-profits/section-509a3-supporting-organizations"
moz-do-not-send="true" class="moz-txt-link-freetext">https://www.irs.gov/charities-non-profits/section-509a3-supporting-organizations</a></div>
<div><br>
</div>
<div>
<div style="font-size:small" class="gmail_default">Explaining
how the two relate is complicated enough that there are
legal briefs on it; I have cc'ed the Society's chief
counsel in case you would like that level of detail. The
summary, however, is that a supporting organization is a
charity because it supports the charitable purpose of the
main organization. As a result, it can provide services
to the main organization under the special tax rules noted
above. <br>
</div>
<div style="font-size:small" class="gmail_default"><br>
</div>
<div style="font-size:small" class="gmail_default">Note that
I am traveling and will generally be slow to respond for a
few days, but hopefully the links above will get you
started and Ilona can provide more detailed legal
information as needed.</div>
<div style="font-size:small" class="gmail_default"><br>
</div>
<div style="font-size:small" class="gmail_default">regards,</div>
<div style="font-size:small" class="gmail_default"><br>
</div>
<div style="font-size:small" class="gmail_default">Ted
Hardie<br>
</div>
<div style="font-size:small" class="gmail_default"><br>
</div>
<div style="font-size:small" class="gmail_default"><br>
</div>
</div>
</div>
<div class="gmail_quote">
<div dir="ltr" class="gmail_attr">On Fri, Sep 20, 2024 at
6:24 AM Olivier MJ Crépin-Leblond <<a
href="mailto:ocl@gih.com" moz-do-not-send="true"
class="moz-txt-link-freetext">ocl@gih.com</a>> wrote:<br>
</div>
<blockquote class="gmail_quote"
style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
<div> Dear Ted,
<div> <br>
During this week’s Chapters Advisory Council call, you
mentioned that the Internet Society Foundation, as a
"supporting organisation" of the Internet Society, is
managing the communications department for the Internet
Society. <br>
<br>
Upon seeking clarification, you explained that the
Internet Society Foundation comprises two elements: one
philanthropic (grant-making) and the other as a
"supporting organisation" of the Internet Society. "This
implies that many of the supporting functions for the
Internet Society as a whole are now part of the
Foundation, primarily because the Foundation can provide
these services to the Internet Society at no cost".<br>
<br>
You further elaborated that this "arrangement" allows
the Internet Society to allocate its budget more
effectively.<br>
<br>
I was previously unaware of this change. Although the
Internet Society Foundation may have been designated by
the Internet Society as a "supporting organisation" of
the Internet Society, it remains a distinct and separate
legal entity. Therefore, I assume that any "outsourcing"
of responsibilities such as Marketing and/or
Communications would be defined in a written "contract
for services" between the Parties setting out
(inter-alia) the terms, rights, and obligations of each
Party. Could you please provide the terms for such an
agreement and any limitations therein?<br>
<br>
My principal concern lies in distinguishing between
executing the Communications Plan and drafting the
Communications Plan. These are fundamentally different
tasks and would undoubtedly be included in the "contract
for services". <br>
<br>
The "contract for services" (together with any relevant
supporting information) will be helpful input for both
the Chapters Advisory Council and also for Chris Locke
and his Team (including for the current "branding"
presentations) in preparation for the promised session
from Chris Locke to the Chapters Advisory Council. <br>
<br>
I look forward to your response and to receiving a copy
of the "contract for services" agreement, together with
any relevant supporting information as requested above.<br>
<br>
Kindest regards,<br>
<br>
Olivier<br>
<br>
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