Just because you live in the country doesn't mean you can avoid IRS paperwork. And so, after months of study, research, and the help of Inger Myhre (a wonderful lawyer from Texas who founded the Cross Timbers Permaculture Institute), Dancing Rabbit has officially applied to the IRS for its 501(c)(3) exemption as a research and educational public benefit charity. This means your donations will be tax deductible (in fact, the ruling will be effective retroactively to our date of incorporation in 1996, so they'll be deductible for your 1997 taxes. If you itemize deductions on your 1040, let us know and we'll get you some documentation pronto.
As part of this process, Dancing Rabbit picked its first Board of Directors: Jennifer (Star) Ray, Ann Shrader, and Jacob Stevens. It also selected its first officers: Tony Sirna, President and Jonah (Cecil) Scheib, Secretary/Treasurer.
Fulfilling these legal requirements can be a hassle, but also legitimizes our organization. But don't congratulate us yet--let's wait and see what the IRS has to say first.
On the other hand, there's one area in which our paper shuffling is complete. It only took eight months and three go-arounds with the IRS Exempt Organizations Special Division to persuade the powers that be that Skyhouse Community, Inc., qualifies for a 501(d) tax exemption as an apostolic organization. Literally, this means we live "in the manner of the apostles" (this is a tax category designed for the Shakers seventy years ago); practically, it means that the members of our community share a bank account and that income earned in our communal businesses goes into the common treasury. This exemption allows Skyhouse to not pay any corporate taxes; instead, corporate earnings are divided equally among the individual members. This avoids self-employment tax and greatly reduces our total tax burden. In addition, it's nice to get some official legal recognition of the social and economic structures we've created. If you're curious about all this or are starting a similar community and need help, contact me or see Skyhouse paperwork..
Now we just have to figure out how to file our taxes!
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