(This information is being offered because I used to be a state tax agent in a different state.) Being a non-profit corporation has many problems for a group like TCLUG. There are several parts of the subchapter on nonprofits in the Int Rev Code that might apply, such as an educational organization. IMHO, the problems come up when you start looking at the legal requirements to be a corporation and a non-profit. It would involve a lot of stuff that isn't done now in TCLUG. A nonexhaustive listing would be: 1. Filing a corporate charter. Don't know what this costs in MN. It would theoretically be possible under open records laws to review charters of similar organizations, and cut/paste what would be needed for TCLUG. The typical legal fees for a "full-fledged" organization to get legal council, have a corporate charter created and filed, and for council to serve as agent of record would typically be $2-3k. 2. On the matter of an agent of record, someone would have to be listed as the legal point of contact (address). 3. Filing for IRS review of the 501c status. There used to be two fee ranges for this, I believe $125 and $1250. Religious organizations had a rubber stamp approval, but everyone else has to go through a review process. 4. Personal liability would fall to corporate officers (pres, vp, sec, etc) and board members. Non-profits usually provide liability insurance which usually has a "board" insurance clause (like "errors and omissions" insurance for accountants, lawyers, etc.). Again, another cost that would have to be paid by the group. 5. Annual filings with the state and federal government. In addition to the types of schedules filed by businesses, non-profits have much more detailed filings on where their money comes from, and what they spend it on. Again, this is *usually* done in association with a bookkeeper/accountant, for legal reasons. And, again, an additional cost to the group. 6. Annual board meetings, maintenance of records for the life of the corporation (usually in perpetuity). Someone would have to keep all the board meetings, resolutions, etc. 7. This doesn't even take into account any monies actually received by the organization from external sources (grants, etc.), which brings up yet another record keeping burden. There are some other issues, but these are the highlights. Churches or temples (even small ones) go through all this trouble so that they don't have to pay corporate income tax on donations they receive. It is in their interest to spend a couple thousand dollars a year for an accountant (or have one within their body of people volunteer), because it saves them money. (PS the term "nonprofit" (or "not for profit") in tax terms just means a corporation that is exempt from federal, and usually state, income tax, because of the type of activities pursued by that corporation) </insert personal opinion> TCLUG would receive very little benefit from incorporating and seeking nonprofit status. TCL:UG would receive many additional financial and time burdens which would be unavoidable if it did seek nonprofit status. </end personal opinion> Brent Friedman