[pct-l] New Mountain Education Videos on YouTube!

Herb Stroh HStroh at sjmslaw.com
Thu Jul 3 15:54:45 CDT 2014


Ned--

Some of the issues raised could be addressed by further disclosures.

I do not see "Mountain Education" on the California Secretary of State's list of entities incorporated in the State of California. If it is incorporated under a different name, or operating as a different entity please advise. Non-profit entities with income exceeding $25,000 generally must file a form 990. Reviewing Guidestar I do not see Mountain Education listed. Please advise if Mountain Education does in fact file 990s.

I am unclear if Mountain Education IS a non-profit 501(c)(3) or intends to be one next year. Please advise. If it is not now, then it cannot receive tax deductible donations. I suppose someone could take the course without legal obligation to pay and then turn over funds, but that is not a donation. That is money for services rendered, i.e., taxable income, and should be declared on some entities' or person(s) income tax return as earned income.

I have no beef regarding the services that you render--other hikers whom I respect speak highly of your courses. Nor am I offended or have an axe to grind. What triggers my post is the representation that Mountain Education is a nonprofit entity when in fact it may not be; that it would appear to be operating an unincorporated for-profit venture (if it is not a legal non-profit it is a for-profit business--it has to be one or the other) circumventing permitting and insurance guidelines; that this list appears to be utilized to promote that business; and that clients/students are told that their payment is a "donation." Even IF Mountain Education were a 501(c)(3), if someone pays money and receives goods or services, that is NOT a tax deductible donation except to the extent it exceeds the fair market value of those goods or services. 

Whatever light you can shed on the above would be helpful in addressing my concerns.

Herb

-----Original Message-----
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Sent: Wednesday, July 02, 2014 10:00 AM
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Subject: Pct-L Digest, Vol 79, Issue 2

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