scouts-l Mail Archive for July of 2000: Re: trading post at summer camp
Sun Jul 16 2000 - 14:40:26 CDT
In a message dated 07/16/2000 2:27:07 PM Central Daylight Time,
<< trading post operations at summer camp--these are profit centers, right?
where does the profit from trading posts go?
I am a member of my council's Executive Board. The council "profits" go to
fund the general operation of the council, just like FOS money or camp fees.
It all goes in one pot. The except to this are the funds solicited for
endowment money where these funds are separately segregated and held in trust
pursuant to the terms of the endowment agreement.
Do not be confused with the word profits and the fact that the BSA is a not
for profit organization. Profit is an accounting term that means the excess
of revenue over costs (direct and indirect). Profits may be earned by a not
for profit. Sometimes those profits are taxable, as in the case of unrelated
business income. An example of that would be a BSA council running a profit
making restraunt open to the public, or an ad agency or anything else like
that. However profits earned from the sale of program related items are not
considered taxable because they are program related. Which is, presumably,
why you do not see Council stores selling men's suits or women's civilian
dresses. These items are not program related and would subject the Council
to the unrelated business income tax (reportable on Form 990-T). Aren't you
glad you asked?
Yours in Scouting,
G. John Marmet
Troop 156, Glenview, IL