February 2, 2001 Update for
Blue Sky Institute
Preamble
In order to do their
part in advancing the welfare of the human race, Deanna Taylor and Thomas King
became co-founders of the Blue Sky Institute over a period of time that spanned
from early in January of 2000 to the present (and isn't quite over as of this
writing, February 4, 2001, in certain Legal Aspects). It is their intent to
devote the rest of their lives to helping further the Advancement of the
Welfare of the Human Race thru continuing to design, develop and implement Blue
Sky Institute's Educational Programs and Projects.
The Founding of an
Educational Organization to allow them to most effectively achieve the
objective of promoting such "advancement" involves several
justifications and also many complexities of a Legal Nature. The justifications
for helping create an Educational Organization structure are simply put, to
have the deserved tax exemption status that such a structure can allow, for the
collection and utilization of resources to allow for the implementation of
Projects and Programs of an Educational nature. The other major justification
for Blue Sky Institutes formation is to create an Enduring tool to allow
people to help other people to live better lives thru Education.
The following
information gives the status of dealing with such of the
"complexities" as are currently known to the co-founders. Also, since
this update is being written by Thomas L. King, with proofreading and Editing
by Deanna L. Taylor, the following will also be written in the first person
rather than third as above. After reading about the status of the Founding of
BSI, please read the pages elucidating the status of Program
and Project Design and Development and Implementation of
Programs and Projects. Thanks!
Notes on the Founding of Blue Sky Institute
Incorporating
with the State and Other Legal Matters
INCORPORATING
The process of
"Incorporating" is essential in this society in order to obtain
"Recognition of Exempt Status under 501(c)(3) of the Internal Revenue
Code" which is essential for obtaining grants and other contributions from
various sources that can be utilized for furtherance of Education.
The "Articles
of Incorporation" were created by Deanna Taylor and Tom King, who
volunteered their time and other resources such as office supplies to the
project of Incorporating thereby eliminating need to pay any fees other than
those required by law to achieve the objective of Incorporation.
On the Thirteenth of
December 2000 the Articles of Incorporation of Blue Sky Institute were
submitted for registration with the Utah State Department of Commerce, Division
of Corporations & Commercial Code.
On the Sixteenth of January 2001, the above
named Division sent a notice of Incomplete Registration to our
office. This notice was received at
Blue Sky Institute on the 20th of January 2001. The notice stated in a bold
face all caps format the following "YOU MAY NOT USE THE WORD INSTITUTE IN
THE CORPORATE NAME" and very little else was written into the "Incomplete
Registration" form. We were
somewhat devastated when we got that news. But thankfully, since we didn't
understand the 'why' of it, we looked into the "Utah Code" and found
out that we were able to use the word "Institute" as part of our
corporate name if we obtained "written consent from the Utah State Board
of Regents". We obtained such "consent" and have now been
informed that the "Certificate of Registration" has been printed, and
if anyone calls the State Division of Corporations asking, Blue Sky Institute
is Registered in Good Standing as a Utah Non-Profit Corporation. HOORAY!!!
Anyone
wishing to review the relevant codes which informed us of the falsehood of the
statement quoted above in all caps, and allowed us to seek and win
"written Consent" from the Board of Regents is urged to read the
relevant Utah Codes on the internet at: 16-6-24
(Repealed 04/30/01) Corporate name -- Contents., Title 53B Chapter 05 Utah
Postsecondary Proprietary School Act, and 53B-5-105
Exempted institutions.
TAX
EXEMPTION
In
order to obtain funding for: the purchase of Educational Materials, paying of
Educator Compensation, and providing proper facilities for Educational Projects
and Programs; contributions and gifts will be accepted by the Blue Sky
Institute. As with other organizations that provide beneficent services and
goods for "Charitable Purposes" (defined as many different types of
services including Education), the Blue Sky Institute qualifies for Exemption
from Income Taxation as well as exemption from some certain other Taxes. Please
refer to the page describing our Policy regarding the
Ethical Utilization and Disbursement of Resources obtained thru contributions
and Grants which is a formalization of our intent to have all contributions
be used for the purpose of Education.
Also, as an added incentive to anyone wishing to make a contribution,
the contributors of such resources as money, property, etc. will be able to
deduct the value of such contributions from their income when filing their tax
returns. However, simply stating that the Blue Sky Institute is formed and
operated solely for Educational Purposes is not sufficient to gain
"Recognition of Exempt Status" from the IRS. This means that before
many Philanthropic Entities will accept proposals for Grants, they require an
official "Letter of Recognition of Exempt Status" from the Internal
Revenue Service (IRS) as part of the Grant Application Package. This letter
must be obtained from the IRS by filing the 1023 Application for
Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code
( along
with form Form 8718
User Fee for Exempt Organization Determination Letter Request and the required five hundred dollar
"User Fee". One other step in this chain of sequences is to file for
and receive a "Federal Tax ID Number" which we have done. We have
also been successful, through a number of unsolicited contributions, in
obtaining enough money to open a checking account and provide the IRS with
their required tribute uh, that is User Fee. Therefore, we now have only to
complete the form 1023 and 8718 and get them in the mail to the IRS and should
be receiving the piece of the puzzle that will allow us to prepare and submit
some "Complete Grant Application Packages" in the hopes of obtaining
resources to use for our Educational Projects and Programs. As of February 4,
2001 the "cost" to the Institute for Document Preparation, and other
"services" that are usually paid to Lawyers and others, have been
donated by Thomas King and Deanna Taylor and have been given a monetary value
of actual cost of materials and not to exceed $1,000.00 for the labor and time
aspect of putting the materials together and presenting them to the appropriate
agencies in jurisdiction over such matters. If anyone feels that this figure of
one thousand dollars is excessive for the dollar amount attached to the labor
and time aspect of Document Preparation for the various Documents that needed
to be created in order to found this organization they are urged to contact Tom
or Deanna by email at info@blueskyinstitute.org
, or, call some Lawyers and ask what they would charge to perform the same
tasks.
To
summarize we anticipate having succeeded in taking care of the Tax Exemption
issue by the middle of the calendar year. Perhaps it will be as soon as the end
of February if the IRS is diligent in processing our forms. These forms shall
be submitted by the 15th of February 2001.