 January/February 2001 (XXXIX 1) |
At its October session the Interim Meeting approved a recommendation from General Services Standing Committee that Philadelphia Yearly Meeting act to incorporate itself as a nonprofit corporation in the state of Pennsylvania. This recommendation came forward after extensive discussion in the Standing Committee, which built upon information provided by the Yearly Meeting’s general counsel, Samuel Swansen of Gwynedd Meeting (PA).
To help Friends understand why Interim Meeting has taken this action we offer the following summary.
The purpose of incorporation is to protect our members against potential liability claims. If the current legal trends continue, it is otherwise possible that all Friends could some day be held unlimitedly liable for actions of the Yearly Meeting, whether or not they participated in those actions and the decisions that led to them.
Philadelphia Yearly Meeting as an organization currently exists as an “unincorporated association” under the laws of the state of Pennsylvania. The state recognizes it as such, and the federal government allows PYM to hold a 501(c)(3) tax exemption as such. However, the vast majority of nonprofit organizations in this state and the U.S. -- including many religious bodies -- are incorporated.
Incorporating is a relatively simple process. Total initial costs would range between $2,500 and $10,000. There would be small annual filing fees in states where we have Meetings.
Incorporating will in no way affect our relationships with other bodies under the care of PYM, such as Westtown School or George School. It will not affect our tax-exempt status in any way. The Internal Revenue Service and the states in which we operate will see us in the same way for tax and exemption purposes. It does not mean we have to appoint a new body of trustees. Nor is taking this action at odds with our principles and beliefs. (Faith & Practice advises Meetings that if they hold property they should be incorporated.)
The next steps in the process involve the General Secretary working with our legal counsel to draft Articles of Incorporation and By-Laws. The General Secretary is researching similar documents for other Quaker organizations. Drafts of these documents for PYM will be brought to Interim Meeting -- and perhaps Yearly Meeting sessions -- this winter or spring.
Thomas H. Jeavons
Swarthmore Meeting (PA)
PYM general secretary
Last modified: Wednesday, February 18, 2004 at 08:18 AM