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<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'>Mr. Executive Director:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'>As a Libertarian, would you really
want to use a government agency’s definition of “contribution”
as binding <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'>on how we internally treat a
transfer of money from a person to the LNC, Inc?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'>A “penalty” was
magically changed into a tax by a Supreme Court “Justice”, so I am
not sure I would count on <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'>the FEC as being a definitive
authority on the English Language.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'>As I made abundantly clear
yesterday, I am not an accounting expert. But I will quote from a web
site that is an expert in that area:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><a
href="http://www.nonprofitaccountingbasics.org/federal-tax-issues/donated-goods-services">http://www.nonprofitaccountingbasics.org/federal-tax-issues/donated-goods-services</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p><b><font size=3 face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>“Donation or Exchange Transaction?</span></font></b><o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>As
defined in SFAS No. 116, a contribution is an <i><span style='font-style:italic'>unconditional</span></i>
and <i><span style='font-style:italic'>nonreciprocal</span></i> transfer of
cash or other assets from one entity to another. In other words, someone is
making a donation to an organization without the expectation of receiving
anything in return besides a possible tax deduction if the recipient nonprofit
is a charity. So, for example, a business donates used office furniture to the
headquarters of a symphony orchestra to use as they wish.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>In
contrast, an exchange transaction is a <i><span style='font-style:italic'>reciprocal</span></i>
transfer between two entities where each party receives something of
approximately equal value. So, using the same example cited above: a business
donates used office furniture (with a fair value of $800) to the headquarters
of a symphony orchestra and in exchange the orchestra gives the business 4 season
tickets (tickets valued at $200 each) to the orchestra’s upcoming
performances.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>It is
also possible that an item could be a partial donation and a partial exchange
transaction. Using the example mentioned earlier, a business donates used
office furniture (with a fair value of $800) to the headquarters of a symphony
orchestra and in exchange the orchestra gives the business only 2 season
tickets (tickets valued at $200 each.) In this instance, of the $800 of value,
half of it ($400) would be a contribution and the other half ($400) would be an
exchange transaction.”<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'>Since we apparently lost money on the
2014 Libertarian National Convention, it is difficult for me to understand how
any revenue from Convention Package sales could be considered a “donation.”<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'> Scott Lieberman<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<div>
<div class=MsoNormal align=center style='text-align:center'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt;color:windowtext'>
<hr size=2 width="100%" align=center tabindex=-1>
</span></font></div>
<p class=MsoNormal><b><font size=2 color=black face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;color:windowtext;font-weight:bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;color:windowtext;font-weight:bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;color:windowtext;font-weight:bold'>From:</span></font></b><font
size=2 color=black face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma;
color:windowtext'> Lnc-business [mailto:lnc-business-bounces@hq.lp.org] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Wes Benedict<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, April 29, 2015
7:02 AM<br>
<b><span style='font-weight:bold'>To:</span></b> <st1:PersonName w:st="on">lnc-business@hq.lp.org</st1:PersonName><br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [Lnc-business]
requesting co-sponsors to appeal Chair's ruling</span></font><font color=black><span
style='color:windowtext'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>I believe that the bylaw :<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'><br>
<b><span style='font-weight:bold'>"3. “Sustaining member” is
any Party member who has given at least $25 to the Party in the prior twelve
months, or who is a life member."<o:p></o:p></span></b></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'><br>
was added at the 2006 convention. I'm not certain, but I'm thinking maybe Geoff
Neale and Dan Karlan were on the bylaws committee.<br>
<br>
<br>
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Verdana><span
style='font-size:10.0pt;font-family:Verdana'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>You might want to ask our FEC consultant if the 2014
convention packages counted as a "contribution" to the Libertarian
National Committee. <br>
<br>
Our 2014 convention registration form, approved by the APRC, said:<br>
<br>
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>*Federal law requires political committees to report
the name, address, occupation, and name of employer for each individual whose
contributions aggregate in excess of $200 in a calendar year. Political
contributions are not tax deductible.<o:p></o:p></span></font></p>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt'><br>
And Mr. Craig's convention package gift or purchase or whatever you call it was
reported to the FEC. <br>
<br>
<o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt'>Wes Benedict, Executive
Director<br>
Libertarian National Committee, Inc. <o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'><o:p> </o:p></span></font></p>
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