[Squeakfoundation]So....

squeakfoundation@lists.squeakfoundation.org squeakfoundation@lists.squeakfoundation.org
Tue, 16 Apr 2002 14:44:07 -0700


Great!  We're refactoring from a Chordic dialogue into U.S. legal 
patterns.
(Note: Having been a Rainbow Family focalizer I'm all for self 
organizing groups of autonomous individuals.
            However, some times providing a well specified legal 
interface proves useful.)

So for now we have SqF specified as a Charitable scientific/educational 
non-profit with members.

A quick scan of similar organizations already identified by the SqF on 
the "Constitution" page of its swiki, 
http://swiki.squeakfoundation.org/squeakfoundation/12, reveals the 
Articles of Incorporation of some and the fact that at least a few chose 
to incorporate in the state of Delaware.  Looking at others' Articles 
may be useful.  Deciding on what state to incorporate in is definitely a 
list topper.  (Note:  A group can incorporate in almost any state 
regardless of where the corporation/individuals actually are.)

There are two primary reasons for forming a corporation in Delaware.
	1) Within the U.S. the 'corporate veil' is strongest in Delaware.
	   This means that Delaware state law offers the greatest 
protections for the officers of corporations formed there.
	   This may be significant for Enron (no doubt a Delaware 
corporation for obvious reasons even though it was based in Texas.)
	   But, the SqF will be a non-profit and thus gains added 
protections for directors already.
	   So this point is not significant here as far as I know.

	2) There are several companies whose business it is to set up 
corporations for others in Delaware.
	   This can be a significant convenience is probably why the Apache 
Software Foundation, Python Software Foundation and others are Delaware 
corps.
	   What these companies do is (for a fee) handle most of the paper 
work associated with incorporating as well as provide an ongoing 
non-Post Office Box mailing address in Delaware (each state has a 
similar requirement.)  Being provided a permanent address avoids the 
challenge of finding someone to volunteer an address and handle any 
future change of address/volunteer.  The ongoing fee charged by these 
incorporating companies usually handles some other government paperwork 
as well.
	   I don't know about non-profit specific services of these 
companies (non-profits require more government paper work as a trade off 
for not paying taxes), but I was satisfied using one for a for-profit 
company.

As stated above, most any state will do for incorporating.  The state 
requirements placed on non-profits vary within a rather small spectrum.  
The strongest case I'm aware of for selecting a state is convenience.  
In my case, for instance, I live with my partner in Arizona and when 
incorporating a non-profit we chose to do it ourselves in Arizona.

As a pretty easy alternative to using a Delaware service if there is 
someone in the SqF that lives in California and is willing to offer 
their address for use on government forms (some official government and 
unavoidable junk mail will wind up there) then I would recommend 
spending $50 on 'The California Nonprofit Corporation Kit' from Nolo 
Press, 
http://www.nolo.com/lawstore/products/product.cfm/objectID/F5B7181E-8F49-4DC5-B547184073FD4A68.
   If California doesn't work out then the Nolo 'How to Form a Nonprofit 
Corporation (National Edition)' book is well worth $40 or a library 
visit.
(Disclaimer:  I don't work for Nolo Press, but I am a happy customer 
that considers their materials the best documentation for common U.S. 
government interfaces.)

To follow up on one of Cees comments:

>> 			"Scientific" purposes encompass scientific research
>> carried on in the public interest.  For S.F. this basically means that
>> the results are made available to the public; or that the purpose is
>> aiding in the scientific education of college or university students.
>>
> That one should be added as well, I think one of the purposes of a 
> strong SqF
> should be to support research based on Squeak with grants.

The financial support of other non-profits may become relevant later 
when dealing with the economic qualification of SqF for tax-exempt 
status with the IRS (U.S. Tax authority.)  For now, will the SqF's 
primary focus be supporting other organizations that do the research, 
educating,... or will the SqF be doing these things and occasionally 
provide funding to other organizations?  (Note: As a non-profit the SqF 
can still contract with individuals (people and corporations) to carry 
out aspects of its mission in addition to providing grants.)

peace,
donald