Who are the officers of Mt. Lebanon Baseball Association?
So here is where it gets complicated. Mt. Lebanon Baseball donated $50,000 on June 29, 2014 to the turf project, after they lost their 501(c)(3) status. Does any of that money belong to the IRS? If any goes back, what happens to the $250,000 non-municipal funds obligation? Do the sponsors lose their tax deductions? Technically, any funds (revenues or income) including dues received after losing their tax exempt, non-profit status becomes taxable to them and any donations or gifts, money or goods, by donors cannot qualify for federal tax deductibility for the donors.
On May 10, 2012, I had a visitor come to my door. At that time, I could mention his name. I happened to bring up 990's in the course of our conversation. Did we ever get to the bottom of the YSA Joint Maintenance Agreement payments? I see that the YSA is a 2014 Sponsor. So they ARE still around.
I wonder if any of the officers notified the commission. Speaking of the commission, on Tuesday evening, the commissioners will be voting to adopt the 2015 Comprehensive Fee Schedule. I see fees for block parties, Right To Know fees, stormwater fees, advertising fees for mtl Magazine, golf fees, swimming pool fees, yoga fees, tennis fees, ice rink fees, pavilion rentals, sanitary sewer fees, parking fees, Kennywood tickets, etc., but gosh darn it, no fees for Wildcat Field. Oh, and no fees for signs at ball fields. Why is that?
Update December 9, 2014 11:41 PM I asked about the fees for Wildcat and for signage. They were added to the 2015 Comprehensive Fee Schedule today since it was an oversight.
I wonder if any of the officers notified the commission. Speaking of the commission, on Tuesday evening, the commissioners will be voting to adopt the 2015 Comprehensive Fee Schedule. I see fees for block parties, Right To Know fees, stormwater fees, advertising fees for mtl Magazine, golf fees, swimming pool fees, yoga fees, tennis fees, ice rink fees, pavilion rentals, sanitary sewer fees, parking fees, Kennywood tickets, etc., but gosh darn it, no fees for Wildcat Field. Oh, and no fees for signs at ball fields. Why is that?
Update December 9, 2014 11:41 PM I asked about the fees for Wildcat and for signage. They were added to the 2015 Comprehensive Fee Schedule today since it was an oversight.
Wildcat Field. Home of Mt Lebanon's *very first youth recreational teams*.
ReplyDeleteYou should have protected it, Mt Lebanon Baseball Association.
There was supposed to be an agreement that Rec would charge $15.00/hour for use of either turfed Wildcat or Middle fields, or if both required, $30.00/hour ? What happened to that - it's not in the proposed fee schedule for 2015 ?
ReplyDeleteChip Dalesandro, Dave Franklin and Stacey Franklin are board members of the Sports Advisory Board who help make decisions regarding taxpayer money.
ReplyDeleteIf Chip and Dave are also officers of a non-profit corporation that has not only been revoked, but deemed illegitimate by the IRS, why would we want them to continue representing Mt. Lebanon.
This is a huge black eye for Mt. Lebanon and Mr. Feller should have them removed immediately.
Nick M.
Are the Wildcat and Middle Fields being reserved for the exclusive use by only the youth sports groups, school varsity and muni programs ? How about general public use - will it be denied ? If so, how can that be legal if public taxes are being used to construct, operate and maintain the fields and the park property is dedicated by law to entire public use, not favored or selective use by local fiat ?
ReplyDeleteNick @ 11:08 PM Feller doesn't have the authority to remove SAB members. But if he did, he wouldn't have the guts.
ReplyDelete11:19 I can see it now:
ReplyDeleteResident: Please send me the Wildcat field reservation ordinance.
Feller: We don't have one and we aren't going to write one.
Resident: Your method for reserving field use appears to be discriminatory. What about general public use?
Feller: We talked this over with the school district solicitor as well as our own and they said we are not being discriminatory. If you have any further questions, please feel free to contact me.
Of course Ms. Morgans, isn't it funny that none of the reputable news organizations brought the above reporting to light.
ReplyDeleteNot the Post Gazette, not the Trib, not The Almanac and certainly not MTL magazine. Scooped again, Ms. PIO!
Way to keep the community officially informed.
Nick, the commissioners appointed the SAB members.
ReplyDeleteI hope the fee issue is brought up during Tuesday's commission meeting.
Elaine
Q: could it possibly be that MTL Baseball is now a for profit organization and therefore don't need to file as a non-profit?
ReplyDeleteJust askin'!
Maybe the news media needs to be informed about this recent IRS mess! The more the public and state officials know, the better. Everything needs to be transparent at this point!
ReplyDelete11:49, they are listed as a non-profit corporation on the PA Corporation website.
ReplyDeleteIf you have information stating otherwise, please share.
Nick M.
Nick, the state listings are not linked to the IRS status, and are not updated regularly.
ReplyDeleteAlready asked my commissioner about pickup games and family games at the park. At this time NO permits will be offered to nonofficial sporting groups. The slots have already been filled. So we paid for it and all we get is to look at it! Welcome to LeboLand.
ReplyDeleteNo I don't have any info, Nick. I was asking if it could be possible that they are no longer a non-profit.
ReplyDeleteIsn't it odd that they haven't filed 990s for three years?
Elaine,
ReplyDeleteGreat find and terrible news for the pro-turf folks...if the commission gave half a crap.
Those people on the commission will read this and move on just like they always do. The only thing that will stop them is a lawsuit. You know it and I know it.
If they are a for profit entity, and have been, and since they have been doing business in Mt.Lebanon, they shoukd have been paying taxes. So let's see the tax returns. Further, if they are and have been a for profit entity, the municipality had no business mixing funds with them or filling in a financial deficiciency by using public money.
ReplyDeleteAny way you slice it, this is s big problem for a bunch of people.
8:11. there is no logical reason for an amateur sports association to change from a non-profit to a for profit corporation. First of all, what would happen to the $96,000 that they had at the end of 2010? You can't take monies from a non-profit and start a for profit, that's illegal.
ReplyDeleteSecondly, why on earth would you want to switch from an already established company paying no taxes on your net revenues to paying a whopping 35% on your net revenues...doesn't make sense.
Nick M.
As it appears, Mt. Lebanon is associating themselves with a corporation (Mt. Lebanon Baseball Association) that is currently “not” registered with the IRS (see document above). The IRS has deemed them illegitimate, meaning, “not authorized by the law.” They had their non-profit status revoked on May 15th for not filing tax returns for 3 consecutive years and the tax return they did file in 2010 was not received by the IRS until March of 2012.
ReplyDeleteAt the same time, officers of this illegitimate business (and the wife of the president) are sitting members of the Mt. Lebanon Sports Advisory Board that affect policy and use of taxpayer monies. Is there a correlation between all of this and what was taking place in the turf task force meetings that were not open to the general public? That's anyone's guess but decisions on how to use taxpayer money was discussed with Dave Donnellan conducting the meetings.
On top of that, as Elaine noted above, a check for $50,000 was given to Mt. Lebanon (dated June 29th) after the IRS revoked their exempt status and deemed them illegitimate. Illegal transfer of money? Don't know at this point. In any case, Mt. Lebanon did accept the $50,000 and deposited the check.
As officers of the Mt. Lebanon Baseball Association (MLBA), should Chip Dalesandro (President), Dave Franklin (General Counsel) have informed the commissioners of this situation? If these folks deemed themselves as being ethical…absolutely.
In view of all of this, what should happen immediately? I feel that the commissioners have an obligation to the taxpayers to investigate this and if they find any of this to be true, they should immediately remove Chip Dalesandro, Dave Franklin and Stacey Franklin (not an officer of MLBA but a member of the SAB) from any and all Mt. Lebanon boards. Why on earth would we want folks who are currently running an illegal business (as defined by the IRS) to be decision makers for our community? It’s obvious that these folks lack credibility. In addition, the $50,000 that was given to the township should be returned.
Nick M.
I am no apologist for MTL Baseball. However, we all need to understand that the organization is made up of and run by volunteers. Perhaps, the volunteers were either uninformed on the tax return situation or did not have time to file the returns. This is no excuse, but it is plausible.
ReplyDeleteNot everything in this community is conspiratorial in nature.
I don't think the commission or manager have any jurisdiction over the money. That's something the IRS has to handle (although, they do have a pretty easy way to report that sort of thing - http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F - you probably want to use form 211 to get the cash reward).
ReplyDeleteNow, as for the local boards, the commission definitely has jurisdiction but I believe people are innocent until proven guilty. It would be acceptable to suspend them pending investigation though.
I do think this is a case of the organization getting bad advice from their solicitor. Maybe they need to switch solicitors?
And Nick M, you shouldn't go naming "he who should not be named." He gets mad about that. :)
--Tom the Tinker
Chuck at 11:19, you are correct, the MLBA is run by volunteers but keep in mind that the officers have a lawful duty to run the business within state and federal guidelines. This is an absolute responsibility, a responsibility that goes far and above just being a volunteer.
ReplyDeleteTom the Tinker, I am not afraid of Chip Dalesandro (he who shall not be named). Any man who feels the need to go around bullying taxpayers who also happen to be women are labeled "cowards" in my book. Bring it on!!
Nick M.
This doesn't show very good management, but I doubt it indicates something nefarious going on.
ReplyDeleteThe organization will likely ask the IRS for retroactive reinstatement rendering this moot.
As Mr. Bachorski said, "Not everything in this community is conspiratorial in nature." That is definitely true.
ReplyDeleteThe IRS notes that "The organization may have applied to the IRS for recognition of exemption and been recognized by the IRS as tax-exempt after its effective date of automatic revocation." This is good advice, since some time has passed between the automatic revocation of 501(c)(c) status and today. The IRS also states, "To check whether an organization is currently recognized by the IRS as tax-exempt, call Customer Account Services at (877) 829-5500 (toll-free number)." This morning I took the IRS's advice and called to get an update on the MLBA's 501(c)(3) status. As of this morning their IRS 501(c)(3) status remains revoked.
MLBA's volunteer status aside, I have a hard time thinking that failing to file three years' worth of 990's didn't catch someone's attention. After all, they filed 990's in the past, and they have an intelligent lawyer on their staff to guide them. There must be something else going on.
Yea 12:24 your right. The IRS is very understanding. HAHAHAHAHAHA
ReplyDeleteChuck B. at 11:19,
ReplyDeleteTell that nonsense to the IRS.I'm sure they will be glad to hear from you. Chip will appreciate your informing them too.
John Ewing
It appears as though 3 years of notices from the IRS reminding you and your business that tax returns are due and/or overdue were just tossed in the trash.
ReplyDeleteAnyone else run their business or personal finances this way?
Nick M.
Once again, I am not defending the organization. I am just stating that this COULD be an oversight.
ReplyDeleteNick, you seem to make some good observations, but sometimes I wonder about your knowledge of procedure.
John, you bring nothing to this conversation, so why don't you just go away.
To be reinstated as a designated 501(c)(3), they will have to refile all over again for tax exemption and provide the delinquent 990's with written explanations as to why the 990's were not filed; and, they may be subject to fines of $20 per each day each 990 was not submitted on time. In addition, donors will not be able to claim federal tax deductibility for donations or contributions from the date of baseball having their status revoked.
ReplyDeleteI've had kids involved with a variety of Mt Lebanon associated sports. I have yet to see any of the Mt Lebanon organizations demonstrate how they comply with any IRS 501(3)(c) rules/regulations.
ReplyDeleteMy kids only fundraise under my supervision for one sports organization and that one is distinctly non-Lebo and transparent.
Maybe the perils of entitlement among these sports organization leaders is finally catching up with them -- and this would be a good thing for all.
The president of this failed 501(c)(3) had an important role in the Turf Task Force. What does that tell you about the judgement of this municipality and its commissioners?
http://www.irs.gov/pub/irs-pdf/p4221pc.pdf.
To 1:53:
ReplyDeleteThey can have their status retroactively reinstated, which will avoid the fine and donors will still be able to deduct donations. They will have to fill out some routine paperwork with the user fee.
To 12:45:
Why does the IRS have to be "understanding"? Retroactively reinstating a 501(c)(3) is common. The IRS even has a handy webpage on how to do it!
2:56 PM Thanks for sliding this by, Dave. We'll see how adept your people are in explaining and rectifying this. You seem to always be associated with organizations that break the rules.
ReplyDeleteHere's my observation and a suggestion for what it is worth.
ReplyDeleteMt. Lebanon Baseball, Youth Football, Soccer etc., all exist essentially through good graces of and through their relationship with the Rec. Dept.
Don't believe it, try starting an association with - let's take for example - Little League Baseball.
Try getting municipal support (PIO), field times, etc.
So with this in mind. I suggest the Rec. Dept. Is sort of like the Municipality's "Good Housekeeping Seal of Approval." Parents/Residents assume MTL youth sports group are being approved, evaluated and monitored by our paid employees.
So why don't we make the dept. responsible for checking on and keeping copies the status and financial records and security checks of volunteers.
- WS
Chuck at 1:42, Really?? An oversight?? How can you honestly believe that??
ReplyDeleteIt's engrained into just about everyone's adult mind that tax returns "must" be filed. One year's worth I may believe, two year's worth I would begin to question, but three years worth I cannot label an oversight.
It makes me wonder too, if the tax returns are grossly delinquent, how much of their other required paperwork is not in order or missing.
Nick m.
Nick, Guys like Chuck will believe anything Tom Riddle tells them.
ReplyDeleteObviously, a bunch of volunteers that can't take care of the business for a little non-profit youth baseball organization, shouldn't be sitting on boards advising multi-million dollar investments for our municipal fields or be involved in the accounting of field sign revenue and naming rights.
ReplyDeleteWas there any intentional collection of monies with the knowledge that said monies would not be tax deductible to the donor? Have any of these funds been applied to the WC/M turf project?
ReplyDeleteThis was not Chip's fault or Jeff's fault or Dave's fault. Its the IRS's fault or Obama's fault or Bush's fault or someone else's fault. Its never their fault.
ReplyDeleteIf you are so familiar with the process then why did you allow them to ignore it?
ReplyDeleteRead the Reasonable Cause section. What would the reasonable cause be for the ML Baseball? Anonymous
ReplyDeletehttp://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Automatic-Revocation-How-to-Have-Your-Tax-Exempt-Status-Retroactively-Reinstated
Now only "certain" groups have to follow the letter of the IRS laws. Being all these morons are democrats they are safe. But Dave I thought you hated this blog? Why are you here reading it? Oh those pesky IP addresses... Better read up Dave!
ReplyDeleteCome on. It's no biggie in Mt Lebanon. Just like Brumfield coaching Iovino to oust Bedortha from Mt Lacrosse Association via his public official influence. It's all for the kids! Is this comment too "truthy"?
ReplyDeleteThere are some great tax attorneys in Pittsburgh. Call an accounting firm and ask them who they recommend. I just cannot see how funds from a disenfranchised non-profit can legitimately be transferred to a community endowment for the creation of a community turf field without quid pro quo and other illegal concerns being raised.
ReplyDeleteStart studying, Franklin.
As a past president of a prominent Mt. Lebo sports organization, I can say that filing our 990 was a major event in the fiscal year that the board of directors was intimately involved in. To characterize this as an 'oversight' is laughable. For properly run non-profit organizations, this is a key activity of the year. Noting our board didn't even include an attorney or CPA, we filed ours. No excuse here other than lack of attention to detail.
ReplyDelete10:27 How do we know this wasn't a misdemeanor of misappropriation of entrusted funds?
ReplyDeleteI'd love to see their account withdrawals.
http://www.post-gazette.com/news/education/2014/12/04/Former-Mifflin-PTA-president-pleads-no-contest-to-theft-charges/stories/201412040318
To Nick M:
ReplyDeleteFirst, I would like to commend you for signing your name to your posts. Once again, you missed my point. I said it was PLAUSIBLE that the documents were not filed. I never made an excuse for these guys. Unless you have proof otherwise and not an assumption, then any number of factors, including negligence and ignorance could be in play.
Remember, this is not a business or a household. MTL Baseball is a volunteer, non-profit organization. I sit on a few boards and sometimes it is hard to carve out the time necessary to be effective. Furthermore, if it comes down to choosing personal, professional or volunteer responsibilities, then guess which one loses? I agree that not filing for three years is mind-boggling, but it is still PLAUSIBLE.
To Anonymous Troll at 5:23 PM
I believe myself to be a fair person who can think for himself. I don’t think that I let anyone lead me around by the nose and tell me what to do or what to think. I make my decisions based on what I believe to be fair and just.
Just to clarify things, I am a youth sports advocate; I oppose the turf project and have made my opinions known. In fact, I have spoken about the turf on two occasions at Commission meetings and attended both anti-turf rallies. I was a presenter at the rally in Clearview Commons.
You too do not understand the word PLAUSIBLE. Unless you can prove your allegations, I believe that you have not made a very strong case for willful intent on the part of the Baseball Association. Unless things have changed, I understand the concept of “innocent until proven guilty” prevails in our nation. I am simply giving the Baseball Association the benefit of the doubt.
As you are too timid to sign your name, I am not willing to grant you the same courtesy. So, in the interest of brevity, why don’t you go back under your bridge, take your meds and make a sticky wicket fantasizing about Harry Potter?
P.S—I agree with WS@3:43. All sports associations should be under the direction of the Recreation Department, PROVIDED that they are competent to perform the functions required.
10:23, you don't need to be a mental giant or know rocket science to accurately fill out a form 990-EZ. As long as you keep complete and accurate records you can create a simple record keeping system using a program like Excel or use one of the more advanced programs like Peachtree or QuickBooks that do a lot of the work for you. If any questions arise on the 990 you can always look at a previous tax return and sort of copy that format using current numbers. In addition, using Peachtree or QuickBooks, a user can generate a professional looking Treasurer's report for when the corporation has their meetings.
ReplyDeleteNick M.
I'm with Chuck on this. I think it was probably an oversight on one person's part who may not have realized that a 990-EZ return had not been filed. I noticed that the Revocation linked to in the Post was not sent to a current MLBA Board Member so it's quite possible that there's reasonable cause to have their tax exempt status reinstated retroactively.
ReplyDeleteAnd in the interest of full disclosure, I'm a former MLBA VP - having served in the early/mid 2000's and I know many of the current Board members. Chip, Jeff, Dave, Diane, Scott, Todd and Denny are really good people who have volunteered countless countless hours to this community. They think it's in the community's best interest to have a turfed field. I disagree with them, and I hate driving by Wildcat these days seeing it all torn up. (Personally I think baseball should always be played on real grass.)
But the idea that the MLBA is intentionally not filing their 990's and that any of the money they have donated for this project should have gone to the IRS is kind of ridiculous.
John Bruni
Mr. Bruni Thank you for your comment. I, too, think baseball should always be played on REAL grass. I would add soccer to that, also. I am a traditionalist in that regard. It breaks my heart to see the present condition of the historic fields on Cedar Blvd. When the project is finished, it is going to be an ugly eyesore. Those fields were an integral part of the charm and atmosphere at Mt. Lebanon Park and I always got a sense of home and nostalgia every time I drove by them or watched my kids play on them. The peewee soccer games were priceless on beautiful fall mornings. It really was picture perfect! Ugly plastic turf is going to ruin that experience forever for generations to come. It truly is heart breaking.
ReplyDeleteOn the subject of the unfiled tax returns, I will respectfully disagree with you. One year I can understand. Perhaps two, though I would start to question it. But, three years? That's what is a little ridiculous. That just doesn't pass the smell test. Sorry.
11:53 am
ReplyDeleteI didn't mean to minimize the requirement that MLBA has for filing their tax returns each year. What I meant was ridiculous was the belief that it was done intentionally or the idea that they somehow owed the IRS money as a result.
I do agree with you that missing three years makes it harder to understand, but again, speaking from my time on the Board, I'm guessing it was unknown to most of the people on the Board, as they would have no reason to ask about it. I never did when I was a Board member. Perhaps I should, but it usually takes an event such as this - to make others aware of it.
Lastly - I couldn't agree with you more about the peewee soccer games on Saturday mornings!
John Bruni
Thanks, Chuck for agreeing with WS@3:43. To Mr. Bruni, I could agree with you that this might be an oversight by one innocent volunteer for one or two years, but three stretches the limit in my opinion. Especially as you say some of the officers have been around for years and it is after an organization, a team effort. I ask... at no point did a board member ask... 'did we file our tax returns this year? Last year? The year before last?' Don't certain high ranking members have to sign off on the IRS forms?
ReplyDeleteSo I offer the following and based on your past experience as a MLB volunteer Mr. Bruni, perhaps you'll comment affirmatively about the suggestion. You wrote: "speaking from my time on the Board, I'm guessing it was unknown to most of the people on the Board, as they would have no reason to ask about it. I never did when I was a Board member. Perhaps I should, but it usually takes an event such as this - to make others aware of it." well, we've had the event, we should FIX IT.
Here the way I see it and sports-minded people should understand rules or regulations as well as anyone.
Let's take football for instance. One rule is you can't voluntarily run out of bounds during a play then run back into the the field of play. Rules are you're out you stay out until the next play. Simple, easy to understand and if you break the rule you get penalized.
So why not a set of rules for the various groups that want to use our municipal facilities. Nothing to difficult, these are after all volunteer organizations.
So if they're a non-profit--
For one, they must maintain and make the required timely reports to the IRS and make those reports to be filed with the Rec Dept as well. They should be made available to the public if someone wants to review the info.
The officers of the group and a description of their respective duties must also be on file and available.
This doesn't mean the Rec. Dept is responsible for evaluating or auditing the groups, just -- here is a check list that the group must fulfill to be a recognized sports group in MTL. Don't want recognition and the understood endorsement build your own sports facility.
Break the rules, don't deliver on time and your group loses all recognition and access to municipal facilities.
It will keep everyone honest and eliminate any innuendo like we're reading here that things may not be on the up and up.
As a volunteer, I'd welcome the checklist so I wouldn't be blindsided by someone overlooking something.
-WS
Ignorantia Juris Non Excusat
ReplyDeleteWhen Chip Dalesandro was past President of the YSA, tax returns were filed, so he did know that tax returns needed to be filed.
ReplyDeleteHow could he think that being the President of another non-profit would relieve him of his duties to make sure tax returns were filed? It's one his responsibilities as President.
Oversight?? Highly doubt it.
Nick M.
Mr. Bruni,
ReplyDeleteIf the association has not been legally operating as a non-profit it is subject to all taxes due for the past three years based on the income, and penalties.
Also, all contributors are not permitted to consider their donations as tax-deductible for the time period, so they should file revised returns to avoid tax fraud implications.
What a mess, and these idiots know what is best for our community? Seriously, wake up.
I won't be supporting the baseball association again as I have every year for years.
Why are some of these officers of a simple sports non-profit relished as Sports Advisory Board members?????
ReplyDeleteJohn Bruni,
ReplyDeleteThank you for having the courage to sign your name. I appreciate that.
In the last couple of years, John, the field sports people haven't been as transparent as they should have been. Questions were raised about the accuracy of the funds collected concerning the Joint Maintenance Agreement involving the YSA. The list of donors to the turf project was hermetically sealed. Members of the community were banned from the super secret turf project task force meetings. Neither the contract changes required by the DEP, nor the costs to those changes have been made public. Commissioner Fraasch has been kept out of the loop by many of these people and through Right To Knows, it was discovered that they had been strategizing as to how to handle Kelly.
Have you seen any statements submitted here on the blog by any board members of the MLBA? None of them are "man enough" to admit the "oversight," have they?
For these reasons, some of us are skeptical.
Elaine
WS - I think you make a very reasonable suggestion which would help alleviate these types of problems in the futures. I'd have no problem with such a requirement and it would probably benefit the officers/directors within those organizations.
ReplyDeleteNick M. - I don't know what may or may not have been in Chip's mind, so I cannot speak for him. The 990 requires only the signature of "An Officer" so if he isn't the person who signs it - I could easily see where he may not inquire about it. Yes, he is the MLBA President, so the responsibility ultimately falls to him - and knowing Chip, I'm sure he would agree. But here's the thing, Nick, what benefit is there from not filing? They're not paying taxes so they're not holding on to the money for some purpose. Everyone reads the post and starts to jump up and down and wants to say that anyone on the MLBA Board should be disqualified from serving on the SAB as a result - but I just don't see it that way. I may question them if they are offering me tax advice in the future, but I don't see how this disqualifies them for offering an opinion about sports fields.
2:09 - They would only be responsible if their application for retroactive reestablishment of the MLBA's tax exempt status is denied. From what I've read about it this afternoon and from a quick discussion with a tax accountant, unless there is some piece of information you are aware of, the chances of having this denied are unlikely. I also do not believe that any contributors committed tax fraud. That would require a showing that they knowingly were aware that MLBA was not a tax exempt organization when they made their donation. Plus, based on my experience, most of the donations MLBA receives are in the form of sponsorships - which are solicited in January/February/March - before their tax exempt status was revoked.
I realize many of you will always think the worst of the Athletic Associations in this community. I can only speak from my experience. These are good people.
JB
Elaine, add also that we still don't have an accounting of exactly who is in charge of the field sign sales, implementation and revenue that was supposed to bring in thousands of dollars to, supposedily, the municipality.
ReplyDeleteTo add some context to this issue, the following Mt. Lebanon organizations with a 501(c)(x) classification have lost their tax-exempt status (source - www.irs.gov/eo):
ReplyDeleteMt. Lebanon Platform Tennis (15-May-2012)
Mt. Lebanon Civic League (15-May-2011)
Skating Club of Mt. Lebanon, Inc. (15-Nov-2011)
Mt. Lebanon Schools foundation, Inc. (15-Feb-2011)
International Association of Lions (Mt. Lebanon) (15-Jan-2011)
Mt. Lebanon Partnership 15-May-2011)
Senior Partners of Mt. Lebanon (15-Oct-2010)
Mt. Lebanon Soccer Foundation (15-May-2010)
Ringold Band of Mt. Lebanon (15-May-2011)
American Legion Post 156, Mt. Lebanon (15-May-2011)
Of the organizations listed above, only the Mt. Lebanon Partnership and the Ringold Band of Mt. Lebanon applied for and received retroactive reinstatement.
So the MLBA isn't the only 501(c)(x*) organization to lose its tax exemption. Perhaps some of the organizations in the above list simply went out of existence, changed to another type of organization, or whatever - the IRS does not say.
Allowing the MLBA's tax exemption to be revoked is likely more embarrassment than criminal intent for the principals of that organization. But given who they are and their involvement in the Municipality's high-profile and controversial artificial turf project, one would think they would have inspected their organization thoroughly so that there would be no issue on which they could be "called out."
If the MLBA is smart they will use this incident as a wake-up call to improve their accounting methods. They owe that much to their contributors, and they owe it to the Municipality with whom they have partnered.
-----
*x = the digit the IRS uses to describe a tax exempt entity.
Earlier today I sent an email over to Dianne Wainright(secretary of MLBA) asking for copies of bylaws, articles of incorporation, minutes from 2014 meetings and current physical address where the books are kept.
ReplyDeleteNo reply as of yet, but I am patient.
Nick M.
Non profits are highly regulated now... believe it or not, due to the Homeland Security Act, you can't just set up a non-profit and let it roll anymore. HSA is watching out for stockpiles of money. I know this sounds a little crazy,but if you are running a non-profit org, you have serious responsibilities.
ReplyDeleteNick, don't be surprised if your requests are denied, because MLBA is a private corporate entity, and required to divulge only their Form 990 returns and references to their PA Dept. of State registration as a non profit entity. They are not a municipal agency, subject to RTK.
ReplyDelete6:03 if MLBA called themselves a non-profit to parents, which they did, and they made a $50k contribution to the turf as a non-profit, they are subject to all the open records rules associated with non-profits...
ReplyDeletehttp://www.irs.gov/pub/irs-pdf/p4221pc.pdf
ReplyDeleteSo what happens if you gave them a donation? Are you in trouble with your taxes?
ReplyDeleteElaine Do you feel better now that you know that Chip is a wonderful man?
ReplyDelete7:42 PM: You are either sarcastic or snarky. Which is it??!!!
ReplyDeletefrom Nolo:
ReplyDelete"And if the worst happens, and the IRS revokes your nonprofit's tax-exempt status, get ready for financial trouble. Your ex-nonprofit will be treated as a regular taxable corporation as of the date of revocation. This means all the income it receives will be taxable, and donors will not be able to deduct their contributions. (However, contributions received by the former nonprofit will be treated as nontaxable gifts made during the years the organization was considered to be tax-exempt.)
But gifts obtained under false pretenses -- for example, in cases where donors were lied to about how the money would be used -- are taxable income to the ex-nonprofit. If that's not bad enough, the ex-nonprofit's officers and directors may have to pay excise taxes if they engaged in excess benefit transactions."
So all the money that went to MLBA from parents who did not want the turf is taxable income for MLBA... because MLBA never told them their money was going to turf, right?
Exactly how will any of your lives be affected by 990s being filed or not? And how are you affected by fees for Wildcat? I am trying to understand the point being made on this thread. This is a paperwork drill, nothing more, at least for the 990s. I simply do not understand how any of this is relevant to the turf installation.
ReplyDelete6:26, because the MLBA lost their tax exempt status, the corporation automatically reverts to a "for profit" company and will be on the hook for taxes. With that said, I don't know exactly how much information is open to the public at this point. See poster at 9:47 too.
ReplyDelete7:24, it depends when you made the donation.
"Donors can deduct contributions made before an organization’s name appears on the Automatic Revocation List. State and local laws may affect an organization that loses its tax-exempt status as well."
Elaine and I were talking to an accountant at the meeting this evening. He said that to hire an attorney to fill out and submit the required paperwork could cost $4000. BTW, Dianne Wainwright is no longer with the MLBA (one less attorney). She resigned her office in October. Apparently the board is in transition but Chip will still be President as he was re-elected. I briefly brought up the MLBA dilemma at the commission meeting this evening, Dave Brumfield got a little defensive, don't know why. Now matter how you slice it, the MLBA will suffer some unattended consequences.
You would think, if donations made to your corporation were no longer tax deductible, you might want to let people know. As of now, nothing is on the MLBA website informing donors that their donation will "not" qualify for a tax deduction.
6:48, good find. Maybe someone should send this over to Chip for future reference.
Nick M.
We owe Elaine a great amount of gratitude for asking about the field use and sign fees that were left out of the updated municipal fee structure for 2015.
ReplyDeleteIf Elaine did not inquire about these fees, the commission would have voted to approve the new fee structure, minus the sign and field use fees.
It was clear as day that these fees were intentionally left out.
Way to go commissioners!!
Thank you Elaine.
Nick M.
11:45 PM, please watch the video of the commission meeting where David Donnellan tells us that a minimum of $12,000 will be raised through fees, but John Bendel clarified that the fees aren't enough to replace the turf every eight years. So 11:45 PM, to answer one of your questions, we will be affected when our taxes go up to pay for your damn turf to be replaced that we didn't want in the first place.
ReplyDeleteElaine
Is Bendel turning over a new leaf with attention to detail?
ReplyDeleteYou, or the collective you referred to when you say "we", needs to remember this is a community. Like the song says, "you can't always get what you want", and you may not want the turf, but there are many that do. My point was who cares about 990s? The IRS will just backdate their status, and if they don't, it doesn't affect you in any way. Maybe the MLBA and the parents of the high school baseball players should charge Mt. Lebanon for all the money they donate, all the unpaid volunteer time, all the maintenance they provide. At the Wildcat fields along, the MLBA has provided to the community at no cost pavilions at Middle and new score boards, new batting cage repairs, and countless other improvements. These improvements are not limited in use. If you want to go to the cages and hit some balls, you can do that. High school parents of players pay participation fees and participate in countless fundraisers. Much of that money goes in to fields. So maybe they should all stop those activities and let the community pay it all. Wise up, people. You also can't have it both ways.
ReplyDeleteFor the person asking the question about Chip. I went to school with him. Actually sat next to him in a couple of classes. Oh boy! He shouldn't be doing anything that requires math... And I seem to recall when we were out of school and he was coaching pee-wee football over at Jefferson he had some issues with a ref at half-time. My brother was on that team. My parents made sure that he never had Chip as a coach after that. But from what I've read Anger Management classes weren't used or didn't work. Funny how Mt Lebanon runs in circles chasing its tail. All this crap is a REPEAT of when Mt Lebanon decided to put turf in at the High School back in the 70's and when they decided to build the Ice Rink against the majority of the people. What's the saying - If you don't study history you are doomed to repeat it. Must have been written by someone from Mt Lebanon.
ReplyDeleteI am tired of all the whining from these sports bullies about how hard they work volunteering. They act like they are the only ones who give of their time and money for this community.
ReplyDeleteIf I added up all of the countless volunteer hours members of this community who are not sports bullies spend giving of their time and talents and $$$ the MLBA hours would pale by comparison. The difference is, they just help rather than push through their own agendas to raid the taxpayers wallets.
sign me "Tired of the Bull****"
Tired of the Bull****,
ReplyDeleteYou really paint with a broad brush. Not all of the sports volunteers “whine” about what they do for the community. In fact, I believe that most of the sport volunteers fly under the radar and do the work required without looking for any recognition or special treatment.
Assumptions, character attacks and innuendo are rampant on this particular topic. We need to separate the people from the problem and then attack the problem. Perhaps, if we would focus on this principle, we might make some progress in this community.
If the people aren't the problem, then what is the problem? The "people" (e.g. SAB who kick residents out of public meetings, or women at public presentations) either bully residents who don't agree with things like turf spending or the other "people" who quietly volunteer continue to let the bullies have their way and leadership positions.
ReplyDeleteAs for the broad brush, my response was to 10:02 who feels that the sports bullies should be given special recognition for something that others constantly do without any.
Well, the problems seem to be a complete lack of transparency, secret meetings, lack of communication, ethics violations, lack of integrity, dishonest intentions, pet projects, misuse of taxpayer money, etc...the list goes on. When leaders in charge deliberately mislead the public in numerous ways, then what do you expect? There is no shame in society. Society's values have gone downhill. If a person gets upset when their actions have been called out, then it's on them! If one doesn't want that, then choose to act morally and ethically responsible! Or, go to counseling and learn how to grow up.
ReplyDeleteWhy are you so sure that the IRS will backdate this? Right now the IRS is being watched by numerous groups, I know that several people including myself have called and requested that they watch the situation and investigate this group. Will it work? Who knows. But we did something.
ReplyDeleteThe group will likely be able to retroactively reinstate the non-profit status because it's a common procedure. The IRS clearly describes and a provides a guide for using the procedure. The IRS can't (and probably has no reason to) arbitrarily deny reinstatement if the group meets all of the requirements for doing so, which they likely do.
ReplyDeleteIt may be a common procedure, I don't know, but in order for the MLBA to regain their exempt status, they will need to file form 1023, submit tax returns from the 3 missing years, supply all paperwork associated to a non-profit (bylaws, articles of incorporation, etc...) in addition to paying a user fee of $850. So basically they are starting from scratch.
ReplyDeleteIf I were a parent of a child who played baseball for the MLBA I'd be outraged.
Nick M.
Every item listed has a fee except the Lebo Sports Camp: June-July. It looks like the cheap athletic supporters are at it again. Freebie sports in June and July.
ReplyDeleteMeanwhile mtl magazine is $35. How do we cancel our subscription?
Nick M.
ReplyDeleteWhy would you be outraged? If you paid the participation fee and your child played baseball, then the MLBA lived up to their commitment. In this situation, where have you been injured?
So, in my opinion, thy MLBA lived up to their end of the deal regardless if they were a tax-exempt organization or not.
Agree?
Chuck, Chuck, Chuck…
ReplyDeleteIf you had $10,000 invested in your local banking institution only to find out later that your invested money was being used for smuggling drugs across the Mexican border to your next door neighbor, would you ask “where’s the injury?” As long as that institution is providing you a savings account, a checking account, a loan for your car and offering you a whopping 1% return on your CD’s, where’s the injury, right? They are living up to their commitment, aren’t they? Would you keep your money with that institution Chuck?
Mt. Lebanon high school currently offers a good education to the kids. The taxpayers are paying $110 million+ for a renovation that we can’t afford. No injury to the taxpayers, correct?
Mt. Lebanon just spent in the neighborhood of $5.5 million for a swimming pool project. Again, something we can’t afford, but no injury to the taxpayers, correct?
Mt. Lebanon is paying close to $1 million to artificially turf a piece of land that again, we can’t afford in which we’ll never see a profit on but will incur ever increasing costs leading to increased taxes. No injury to the taxpayers, right?
Oh wait, I remember now. Didn’t Mt Lebanon recently get its bond rating reduced only to down play it a few meetings ago like it was no big deal but only to have John Bendel comment at the last commission meeting that Mt. Lebanon is trying to get the old rating restored? If it was no big deal, or injury, then why the desire to restore it?
Mt. Lebanon is paying $40.00 per foot ($800 per 20 ft length) for corrugated pipe for the drainage system for the turf project, the same pipe that you and I could buy for roughly $8.50 per foot or $165 per 20 ft. length. No injury right? Just a few bucks from the taxpayers because Vasco is providing a service and living up to their commitment, right? With over 4000 feet of pipe needed, how much of an overcharge is that? Let’s not forget the $3000 water fountain.
And no injury to the taxpayers either Chuck for failure on Gateway Engineers part for not having the NPDES permit in hand prior to the bidding process for the turf project which could have saved us tens of thousands of dollars with the end result being an $86,694 bill to you and me.
As far as the MLBA is concerned, from my understanding there are many parents who are fuming because the MLBA took $50,000 and invested it in a project that the parents did not want or approve of, only to find out that the same corporation is proving their incompetence because they couldn’t even file a simple 990 not even once in the past 3 years, who can’t even inform donors that their current donations do not qualify for a tax deduction, who now have to spend in excess of $850 plus any legal fees to get them back in good standing, money that could have been invested in uniforms, trophies, equipment, etc.. No injury, right? You are correct Chuck, they are living up to their end of the deal…but at what consequence?
When Cool Springs starts taking ball players from Mt. Lebanon because MLBA is acting so reckless which results in lower participation producing less revenue for the MLBA, where’s the money going to come from when Mt. Lebanon asks for the MLBA share of the non-municipal funds to pay for future costs to pay for the artificial turf project? No long term monetary injuries...right Chuck? Like I said in a previous post, there could be some real unattended consequences that some folks don’t see.
Thank you for your post Chuck, I really do appreciate the debate.
Nick M.
Nick,
ReplyDeleteYou continually mix your arguments. This post relates to a non-profit organization not filing the proper documents.
It does not matter what the tax status is, as long as those paying the fees get baseball for their child. End of story.
The points you state in your latest post are valid in general, but they are not applicable for this particular discussion. That is why I asked my question to you.
Hello again Chuck at 8:36, I could be wrong, but it seems as though your questions focus on a small detail being specific in nature and I'm seeing this debacle in a much larger view and anticipating the unattended consequences.
ReplyDeleteMost probably don't know this but the 1998, 1999 and 2000 MLBA tax returns were not filed until August 2006, and the 2000 thru 2003 returns weren't filed until 2005. Different people were at the helm back then but when the MLBA tries to reinstate their exempt status, there might be some problems, especially if the IRS takes exception to this extreme tardiness. Needless to say, the MLBA might be in some deep doo-doo.
So let me ask, this is speculation but what if the MLBA goes under and there is no more 3rd party baseball association? Then what? The taxpayers are expecting roughly $125,000 in eight years from these associations to pay for their portion of the turf replacement. Who is on the hook if that number comes up short.
Do you understand how important it was for Elaine to stand up and ask why the sign and field use fees were left out of the 2015 fee schedule? These fees were INTENTIONALLY left out. Want proof...watch the video and ask yourself, why did Dave Donnellan have to come from the back of the room to the podium to explain the fees to the commission? Interesting, isn't it?
Thanks again Chuck.
Nick M.
And the first person who says that the fees being left out of the 2015 fee schedule was just an "oversight"...may Santa leave you a lump of coal in your stocking.
ReplyDeleteNick M.
Chuck: The point of the discussion is ethics, integrity, honesty, and transparency.. It is encombant that anyone handling taxpayers's money does so in a prudent, efficient, legal manner. Doesn't matter what topic is discussed in regards to public money. As to the IRS documents, if it was intentional or not, the bottom line is: " It doesn't pass the smell test."!!!
ReplyDeleteNick,
ReplyDeleteLet’s go through this very slowly. I am focusing on a small detail, because this whole topic is about a small detail. You keep insisting that it is much more than what it is. I stand by my statements that there is no injury to those who have signed up to play baseball, because they got what they paid for. Nothing more, nothing less. This whole thing is about an error made by a volunteer group running a non-profit organization. If there are consequences, then those on their board must deal with them on a procedural and financial level. Regardless, it is a private organization.
With regards to the turf, I believe that it is a waste of taxpayer money, and it will be a gift that keeps on giving. If the MLBA was not viable for whatever reason and if there was still a market for youth baseball, our community has a Recreation Department that could take over the programs.
If you do the math, there is no way for the sports organizations to raise sufficient funds for the turf replacement in 4-8 years using the present registration and user fee models. Unless there are dramatic increases in participation and user fees, or if a sugar daddy is found, the taxpayers will probably need to pick-up the shortfall between what is collected and the replacement costs.
I understand and applaud Elaine for making the omissions known. However, we cannot make the jump that the omissions were done intentionally. Looking for proof on the video is like looking at the Zapruder film and deducing that there was another gunman firing from the grassy knoll on November 22, 1963. I go back to my original posts. It is PLAUSIBLE, but there is no concrete proof.
As Forrest Gump would say: “that’s all I have to say about that.”
501(c)(3)'s are classified as either a "public charity" or "private foundation". MLBA was a public charity. Doesn't matter, either way the residents have a vested interest and should want them to make as much money as possible, same with lacrosse, softball, soccer, etc.
ReplyDeleteI'm 100% with you Chuck on the elimination of all the 3rd party sports associations and putting them under the umbrella of the Mt. Lebanon Recreation Department. Some of these organizations bring in some good money. Soccer for example ended 2013 with $206,356.00 in the bank. Imagine what just some of that could be invested in to help the rec center that we are now paying with taxes. Imagine the buying power that we could have with Dick's or Under Armor if we needed 5000 uniforms vs 1000 uniforms plus equipment or maybe even trophies. With the right mindset, we could turn the whole recreation department into one rock'n place.
Chuck, are you volunteering to be Lebo Sugar Daddy?
I honestly believe, if we had commissioners who made decisions as if Mt. Lebanon were more like a business, rather than wanting to appease people, and a manager with the same mentality, we could be living in one heck of a community. But at this point in time, that's just a pipe dream.
Nick M.