[Chapter-delegates] Follow-up on Chapters Advisory Council Meeting of 17 September 2024

[Ted Hardie]

Hi Olivier,

A supporting organization is a term of art in US tax law, please see:

https://www.irs.gov/charities-non-profits/charitable-organizations/supporting-organizations-requirements-and-types

and

https://www.irs.gov/charities-non-profits/section-509a3-supporting-organizations

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.

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.

regards,

Ted Hardie


On Fri, Sep 20, 2024 at 6:24 AM Olivier MJ Crépin-Leblond <ocl at gih.com>
wrote:

> Dear Ted,
>
> 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.
>
> 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".
>
> You further elaborated that this "arrangement" allows the Internet Society
> to allocate its budget more effectively.
>
> 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?
>
> 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".
>
> 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.
>
> 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.
>
> Kindest regards,
>
> Olivier
>
>
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