"COMPENSATION!!"
"Its best to comply than to pretend to be unaware"
COMPENSATION OF BOARD MEMBER
Elected board members should not be compensated monetary. If members are independent contractors, registered as an umpire, assigned games at one level or more. No compensation should be rendered. Individual is considered to be in business for himself/herself as an independent contractor. So the time he/she spends doing association business can be deducted on tax return, as using room at home as small office to conduct association business.
REIMBURSEMENT
Limited
GENERAL MEMBERSHIP
Many associations have their membership in a risk bubble. Each member may or may not know they are in a risk taking situation. Board members of Local associations may not come out and say it directly, but they will drop a hint. Like we do not make any money, we pay officials out of another bank account. With that being said, you can rest assure yourself that the association is not complying with federal and state income reporting. Is this "Money Laundering"??
Associations that do not apply for tax exemption, just to save $500 or $800, over the years will regret not doing so. The $800 investment over the years would be well worth it. Would have been easier to take $800 from association's dues and gotten "tax exemption".