Fraternity flap brings down banner

[pstokely]

Source: Columbia Daily Tribune

A University of Missouri fraternity house has taken down a banner supporting gubernatorial candidate Dave Spence, and a fraternity adviser said it was because a representative from Gov. Jay Nixon’s office had complained about it to the national chapter.

Jason Swindle, an alumnus and chapter adviser to the Beta Theta Pi house, said he received a call Friday from the national office that the banner was a threat to the chapter’s tax-exempt status.

“They had received a call from the governor’s office, and the point was made by the governor’s representative that we need to take that down, that it would jeopardize our nonprofit status for our foundation if we left it up,” Swindle said.

The person at the national office, who was not available for comment, told Swindle that Nixon’s representative was spokesman Sam Murphey. Asked whether he placed the phone call during state work hours, Murphey said: “I am not going to comment on actions I took, if any, in my personal capacity.”

Read more: http://www.columbiatribune.com/news/2012/may/23/fraternity-flap-brings-down-banner/

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I think Nixon's son is a member some other frat at Mizzou

[elleng]

1. Didn't know frats have tax-exampt status!

[Tunkamerica]

3. They almost have to considering how much ill-gotten gain they take in per semester

[Sgent]

6. Yes and no

Fraternities, the same as Golf clubs, yacht clubs, etc. enjoy tax exempt status under 501(c)7, they are not a charity under (c)3.

This means that they are exempt from paying income taxes, but donations are not deductible by the donor. In most states they are not exempt from property taxes, sales taxes, etc. like many (c)3 organizations are.

The history is actually somewhat interesting, in that the IRS requested the exemption because these organizations rarely make profits (or much of one) over the long term, as they usually just charge enough to cover operating costs and / or building fund. In addition, investment income and income from large transactions (property sales if proceeds aren't rolled over into new clubhouses, etc.) is usually taxable. Remember that taxable businesses pay based on net income, not revenue.

[msongs]

2. Nixon + Swindle in the same story. where have we seen this before lol nt

[yellowcanine]

4. Is Jason Swindle any relation to Orson Swindle?

http://en.wikipedia.org/wiki/Orson_Swindle

[ccjlld]

5. I saw this thing

on my way to work on Tuesday morning. It was huge. This is a frat house that was torn down and a new one is currently under construction. It sits on the eastern edge of campus. I told my hubby about it that night and said that they really ought to take it down because it made it look like the University was endorsing this guy. Even though the frats aren't "officially" part of the University, people still associate the University with them. Glad to see it's gone.