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HomeMy WebLinkAboutItem 7.1 Funding of Non-Profit Groups CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE : June 23, 1986 SUBJECT Funding of Non-Profit Groups EXHIBITS ATTACHED Park and Recreation Commission Agenda Statement, May 13 , 1986; City Council Agenda Statement, March 24, 1986 and Valley Artists Request RECOL,MENDATION Consider FINANCIAL STATEI,IENT None DESCRIPTION At the PIarch 24 , 1986 meeting of the Dublin City Council , the Council reviewed a request for financial assistance from the Valley Artists , Inc . Although the Council felt this was a worthwhile cause, it was concerned that no policy has been developed to deal with such requests . As a result of the request, the Council indicated its desire to develop policies related to funding non-profit groups . The Park and Recreation Commission was directed to address philosophical issues and the Council would address budget issues . The Park and Recreation Commission discussed the philosophy of providing funding to non-profit groups at its May 13, 1986 meeting. The Commission ' s discussion centered around the groups eligible for funding, the programs/projects eligible for funding and application procedure to be followed. It was the consensus of the Commission that it was inappropriate for the City to fund individual groups and that City funds should be utilized to serve the entire community. The Commission did not feel that there was an actual need for funding groups and, felt that by offering funds, the City may be creating the need. Instead it was the Commissions recommendation that the City provide in-kind services such as utilization of Shannon Center at no cost or by establishing a lending library of equipment, which was already being used by the Recreation Department for other City sponsored activitie's . The current rental policy for Shannon Center provides for limited use by Dublin-based groups at no charge . In order to qualify, 750 of the groups membership must live in Dublin or the Dublin San Ramon Services District . For those groups not meeting this requirement, but providing a valuable service to Dublin residents , it is recommended that each be considered on a case- by-case basis for policy exceptions . The Commission will review the building usage by non-profit groups in six months time in order to determine if the groups are taking advantage of this service . It is Staff ' s recommendation that the Council consider the recommendation of the Park and Recreation Commission . ----------------------------------------------------------------- ITEM NO. Copies to : Park & Recreation Commission Sharon Nichol Florence Scudder Dorothy Harder CITY OF DUBLIN PARK AND RECREATION COMMISSION AGENDA STATEMENT MEETING DATE: May 13, 1986 SUBJECT Funding of Non-Profit Groups EXHIBITS ATTACHED None RECOMMENDATION 1) Discuss the Philosophy of Providing Funding to Non-Profit Groups 2 ) Determine the Criteria for Eligible Groups 3 ) Determine the Criteria for Eligible Programs/Projects 4 ) Direct Staff to Propose a Written Policy for City Council Review FINANCIAL STATEMENT Not Yet Determined DESCRIPTION At the March 11, 1986 meeting of the Park and Recreation Commission, the Commission reviewed a request for financial assistance from the Valley Artists, Inc. As the City does not have a policy which provides funding for community groups and funding has not been included in the FY1985-86 Budget, the Commission deferred consideration of the request until the development of the FY1986-87 Budget. The City Council heard a. similar request from the Valley Artists at their March 24 , 1986 meeting. Although the Council felt that this was a worthy cause, they were concerned that no policy has been developed to. deal with such requests . As a result of the request of the Valley Artists, the Council directed staff to develop policies related to funding non-profit groups . The Park and Recreation Commission were directed to address philosophical issues and the Council will address budget issues . In' order to develop a policy for funding' non-profit groups, the following areas need to be addressed: 1) Groups eligible for funding; 2 ) Programs/projects eligible for funding; and 3 ) Application Procedure . Groups Eligible for Funding Criteria _ 1 . Certified Non-Profit Organization 2 . Non-Restrictive Membership Policy 3 . Dublin-Based Categories 1 . Youth 2 . Elderly 3 . Special Populations 4 . Cultural Arts 5 . Health Services 6 . Education Programs/Projects Eligible for Funding Programs or projects to be funded must address a need that is currently not being addressed by any other agency in the City and must have a direct benefit to the residents of Dublin. In determining project eligibility, the following questions need to be asked: -------------------------------------- ITEM NO. 6 AGENDA STATEMENT - Funding of Non-Profit Groups May 13, 1986 Page Two 1 . Who does the program/project benefit? How can this be measured? 2 . Is the money awarded going back into the community? 3 . Is the program/project duplicating the services of another organization? 4 . Will the program/project be . able to stand on it ' s own once the initial funding is utilized? 5 . Purpose of the funds - how was this determined? Application Procedure Considerations 1 . Formal Application Form? 2 . Applications accepted year round or by a specified date? 3 . Do we publicize that funding is available or handle on a case by case basis as the need arises? 4 . Can groups reapply for funding each year or is it a one-time grant? It is staffs recommendation that the Commission do the following: 1 . Discuss the philosophy of providing funding for non- profit groups 2 . Determine the criteria for eligible groups 3 . Determine the criteria for eligible programs/projects 4 . Determine the application procedure 5 . Direct staff to prepare a written policy for City Council Review .,y.....vrr'.• .... a"?.1?T� nr-O' T -i:"'1'.4•;.'K� 7. JK; t "YR`" �r U i _ yt, 1 CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 24 , 1986 SUBJECT Valley Artists Inc . Grant Application EXHIBITS ATTACHED A. Grant Application RECOMMENDATION Defer Consideration of Request Until Development of the FY1986/87 Budget FINANCIAL STATEMENT $55 . 00 - $2 , 898. 00 DESCRIPTION The City has received an application for funding from the Valley Artists, Inc . (Exhibit A) . The Valley Artists is a non-profit organization comprised of local artists . Their purpose is as follows : To attract more people into actively supporting the opportunity for increasing cultural development in the area of the arts, for residents of our largely commuter population in the Tri-Valley Area. To project fellowship, encouragement, and inspiration to all interested in the arts, and to provide an opportunity for learning . Through Spring and Fall Art Shows, strive to provide a competitive incentive for excellence . The groups 67 members hail from Alamo to Fremont. Twenty percent ( 20% ) of the group are Dublin residents and forty-one percent ( 41% ) of the group live within the boundaries of the Dublin San Ramon Services District . The Valley Artists, Inc . have proposed the following projects for funding : A. Meeting facilities . The use of the Shannon Community Center without charge is hereby requested for the two semi-annual art shows (two and a half days each) , the ten monthly evening meetings, the three annual workshops (one or two days each) , and storage space for show easels, classroom easels, and other art supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (No Charge) B. Construction materials for fifty art show exhibit stands ( "flats" ) at $11 each . Volunteers will build and assemble them. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . $550 . 00 C . Purchase of 15 individual aluminum easels at $53 . 20 each for use in our workshops, weekly painting sessions, and guest artist demonstrations . . . . . . . $800 . 00 D. Fees for monthly demonstrators (professional artists ) , at $75-100/session, for 9 months of our fiscal year, 1986-87 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $800 . 00 E. Fees for two professioinal art judges at our Annual Spring Show, estimated at about $85 each. . . . . . . . $170 . 00 F . Printing costs for two art shows (for posters $74, and for show announcements and entry forms $27 ) , the annual Roster of Members ( $42 ) , and the Valley Artists ' Newsletter ( $180 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $323 . 00 ----------------------------------------------------------------- ITEM NO. . _. .... .. ... . . i.. .. . ..-�».. ,ice.. .... .,r. aoh . ,... ... . w ._., ., .. .. .., .. .. . . ' AGENDA STATEMENT - Valley Artists Inc . Grant Application March 24 , 1986 Page Two G. First class postage for mailing the annual Roster of Members ( $18) and the monthly newsletter to members, other art leagues, and galleries . . . . . . . . . . . . . . . . $200. 00 H. Purchase of two floodlight stands for demonstrations and shows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55 . 00 GRANT REQUEST TOTAL $2 , 898 . 00 With respect to utilization of Shannon Center, our current policy does not allow for "free" use by any groups other than those sponsored by the City of Dublin. Under the proposed policy, community groups with 75% of their membership residing within the boundaries of the Dublin San Ramon Services District are eligible for limited usage at no charge . At present, the City does not have a policy with regards to providing funding to community groups . Therefore, funding has not been earmarked for this purpose in the FY1985-86 Budget. The Park and Recreation Commission heard testimony from the Valley Artists at their meeting of March 11, 1986 . Although the Commission was supportive of the goals of the Valley Artists, they did not feel comfortable in recommending that the project be funded without a formal policy to support their decision. It is the recommendation of staff and the Park and Recreation Commission that consideration of the Valley Artists request for funding be deferred until consideration of the FY1986-87 Budget . '}-M1........T Ii 4'1� .}l �iT.'�'. 'Y!J. . � „"'r` f. 1 K •t ,�. S - 1. T .-t for further information, call : S, in Nichol 837-0142 Florence Scudder 828-4995 Dorothy Harder 828-4184 The Valley Artists, Inc. P. 0. Box 2343 Dublin, CA 94568 1. CITY OF DUBLIN GRANT APPLICATION Submitted to: The City Manager Att. : Mr. Paul Rankin, Assistant to the City Manager City of Dublin, CA Grant Objective: Support of meeting facilities, equipment, and services for the Valley Artists. 2. The VALLEY ARTISTS History: The Valley Artists as a community group was first set up in 1969 as part of the San Ramon Cultural Arts Association. On February 1, 1972, a separate organization was created; likewise both a theater group and a dance group were originated. The first President of the Valley Artists was Doreen Culp of San Ramon. Meetings were at the Frederikson School in Dublin, and art shows were held at Liberty House in Dublin. The beginnings of a community-wide art exhibit, as a rotating circuit among several businesses, first involved an arrangement with the Amfac Corporation in Dublin,.which donated money to the Valley Artists in exchange for decorating their offices with paintings which were changed every three months. The Articles of Incorporation, with corporate By-lags, were executed on September 13, 1979. The Valley Artists Inc., a California corporation, was granted State tax-exempt status by the California Franchise Tax Board on February 3, 1982, under the Social Welfare Code, Section 23701 f. (See enclosed State letter). 2 Federal tax exempt status was granted by the Internal Revenue Service on September 30, 1982 , under IRS Code, Section 501 (c) (4). (See enclosed Federal letter). Meetings are currently held at the Dublin - San Ramon Senior Center on Alcosta Boulevard. Purpose: To attract more people into actively supporting the opportunity for increasing cultural development in the area of the arts, for residents of our largely commuter population in the Tri-Valley Area Our purpose is to project fellowship, encouragement, and inspiration to all interested -in the arts, and to provide an opportunity for learning. Through our Spring and Fall Art Shows we are striving to provide a competitive incentive for excellence. Program The regular monthly meetings of the Valley Artists feature demonstrations by well known artists, who are invited to show the techniques of using oils, water colors, acrylics, pastels and graphics. All of these meetings are open to the public at no charge. Attendance has been very good. Each week many of the members meet for an infor- mal painting session, which is an opportunity for mutual help and fellowship. Art shows are held twice a year, with an estimated 100 works of art placed on exhibit (and for sale) for two days. Awards are given for the best entries, based upon decisions by appointed judges. 3 A continual circuit exhibit of art works is hosted by local businesses. Paintings by the Valley Artists are hung in offices and lobbies in thirteen locations, and these not only add to the decor, but serve as an unobtrusive method for sales of the paintings. The items exhibited are changed on a three-month schedule. One day art workshops are held three times a year and are open to the public. A fee is required of all attending, as the instruction is given by art teachers invited by the Valley Artists. At the present time, the Valley Artists are using the facilities of the Dublin / San Ramon Senior Center, at 9300 Alcosta Boulevard, but these are no longer adequate for the grow- - ing membership of the Valley Artists. The group would much prefer to utilize the Shannon Community Center, but cannot afford its charges. We are requesting the use of the Shannon Center for our meetings, shows, and workshops. The current program of the Valley Artists as set forth here is offered as consistent with the cultural aims and objectives of the City of Dublin, its Shannon Community Center, and the citizens of our community. This application for funds to support the program is presented as desirable for promotion of cultural activities for our city. We believe that having the Valley Artists .Program at the Shannon Center would enhance the growth of the Program, its membership, and its contribution to the Dublin community. 0 Organization of the Valley Artists Board of Directors ( 1 S members): President, Vice-President, Treasurer, Secretary , and 13 Chairs ( 1 1 additional persons). Staff: No paid staff; all services are performed by member volunteers, especially the Officers and the Chairpersons. 4 Membership: Open to any interested individual, of whatever level of competence as an artist, from beginners to accomplished amateurs and professionals. At present we have 67 members in good standing who have paid their 1985 - 86 dues. Budgetary Support: Dues by the following schedule: Regular membership...........$ 10 per year ($ 15/couple) Senior (65 and over)........... $ 5 per year ($7/couple) ,Student (under 18)............. $ 5 per year Sales of art work for the members, at shows and on the "Circuit' exhibits............................... 10170 donation of the gross price Art work on the exhibit circuit (up to 13 locations) Donations by five businesses, per each exhibit item......... .$ 1 per month Art show entry fees: Members.......... $ 3 per item Non-members $ 5 per item Raffle of art work at semi-annual art shows........ (Usually under $50) S Other Funds Available: No other funds are available to the Valley Artists, other than those which have been listed. Solicitation of donations by local businesses has been contemplated. 3. Pro iects Proposed for Grant Funding A Meeting facilities. The use of the Shannon Community Center without charge is hereby requested for the two semi-annual art shows (two and a half days each), the ten monthly evening meetings, the three annual workshops (one or two days each), and storage space for show easels, classroom easels, and other art supplies............ .......................................................................(No charge) B. Construction materials for fifty art show exhibit stands ("flats") at $11 each.. Volunteers will build and assemble them................................... $ 550 These are interlocking 4 X 4 pegboard stands used for hanging groups of paintings at shows. Our present stands are very old and unattractive, and can hardly be made usable. C. Purchase of 15 individual aluminum easels at $53.20 each for use in our workshops, weekly painting sessions, and guest artist demon- strations................................................. $800 We have never been able to afford easels, and wish to upgrade our facilities for our artists and demonstrators by adding these as necessary equip- ment. The availability of such equipment would encourage the participation of additional artists. 6 D. Fees for monthly demonstrators (professional artists), at $75 - 100/session, for 9 months of our fiscal year, 1986-87)................ $800 Over the past few years the fee level has more than doubled; many now request $ 100 or more. They are not paid for their travel. E. Fees for two professional art judges at our Annual Spring Show, estimated at about $85 each......................................................... $ 170 Because of the cost, we have had to do with but one judge per show; two judges, representing differ- ent fields of art, would be able to give balanced coverage to more categories of art- F. Printing costs for two art shows (for posters $74, and for show announcements and entry forms $27), the annual Roster of Members ($42), and the Valley Artists' Newsletter ($180)..................................................... $323 In September 1985, the Valley Artists had to drop their own newsletter because of the high costs of printing and mailing, and now would like to return to issuance of their former publication directed at their own member interests and activities. In place of their former newsletter, the Valley Artists are currently paying a small share ($ 136/yr.) of a monthly newsletter, The Portfolio, issued jointly by the Pleasanton Art League, Livermore Art Association, and the Valley Artists. G. First class postage for mailing the annual Roster of Members ($ 18), and the monthly newsletter to members, other art leagues, and galleries............................................. $200 7 H. Purchase of two floodlight stands for demon- strations and shows...................... $ 55 These functions have been hampered by lack of adequate lighting. They are especially needed for the monthly demonstrations which are teaching sessions in which the audience must closely observe the progress of a painting on the demonstrator's easel. These meetings are not limited to the membership, but are open to the public. They are advertised in various newspapers. Grant request total......................... $ 2,898.00 4. Responsibility for Grant Administration With guidance of the Board of Directors, Dorothy Harder, President of the Valley Artists, would serve as the Project Directory responsible for the management and expenditure of funds and privileges granted under this request. Marie Ahlf would serve as the Financial Officer for the grant. Qualifications of the proposed Project Director. Dorothv Harder Superintendent of Photography for the Alameda County Fair, Pleasanton, CA., since 1977. Member of the Fund-raising Board, Hope Hospice, Pleasanton, CA, since 1984. Valley Artists representative on the Board of Directors of the Red Barn Association, Inc., San Ramon, CA, since 1985. Program Chairman of the Seniors of California, for Dublin/San Ramon, 1974-77. 8 Partner, bookkeeper, and financial manager of family building contract business until 1966. President of the Oakland Camera Club, for two years. President of the Pleasanton Art League, for two years. Qualifications of the proposed Financial Officer, Marie Ahlf Public accountant, self employed. 12 years in San Carlos, CA. Assistant to a Certified Public Accountant, 2 years for Mr. Russell of Atherton, C k Purchasing Secretary, 12 years for the Poultry Producers of Central California 5. Methods of Operational Evaluation The best criteria we have are: 1. Membership growth 2. Attendance at shows, workshops, weekly painting sessions, and demonstrations 3. Level of volunteer effort 4. General public interest and press coverage 6. Financial Statement for Previous Fiscal Year (Attached) 7. Current Operating Budget (Attached) 8. Current Brochures about Valley Artists (See enclosures) A. Valley Artists Brochure B. Membership application form C. Membership Roster 9 9. Tax Exempt Status (See attached State Franchise Tax Board and IRS letters). 10. -The Board of Directors OFFICERS OCCUPATION President.................Dorothy Harder Nurse/artist Vice-President.....Sharon Nichol Office clerical worker/artist Treasurer................Elaine Buckland Bookkeeper/artist Secretary................Lorelei Toltvtar Housewife/artist CHAIRPERSONS Circuit.........:............Rose Holmdahl Housewife/artist Historian.................Irene Pearson Art gallery owner/artist Hostess....................Vanda Paulucci Housewife/artist Librarian.................Lou Ann Styles Art teacher/artist Membership............Florence V. Scudder Housewife/artist Painting of the Month............Herb Charnetski Newspaper printer/artist Publicity.................Cleo Fredrickson Housewife/artist Programs................Pat Mueller Secretary/artist _ Red Barn Director..............Arlene Dow Bookkeeper/artist Dorothy Harder Nurse/artist Sunshine.................Billie Twitchell Supervisor, welfare eligibility, OAS/artist Telephone...............Marie Ahlf Accountant/artist Valle/ Poster.......Arlene Dow Bookkeeper/artist Cleo Fredrickson Housewife/artist Workshops..............[Not filled at present] 10 This application for financial support, prepared as a grant request and presented to the Office of the City Manager of Dublin, CA, for consideration by the City Council, has been approved by the Board of Directors of the Valley Artists, Inc, a non-profit California corporation. We, the undersigned officers of the Valley Artists, Inc., respectfully request consideration of our proposal, and agree to utilize any funds awarded to the best of our abilities, within the chartered purposes of our organization, and as set forth in this proposal. Submitted and approved by: Dorothy B.�arder, President & Chairperson of the Board of Directors Elaine Buckland, Treasurer Dated: '/_�Z February 1986, at Dublin, CA Encl.: 8 FVS/DH/HIS/a 12 Feb 86 Valley Artists Proposed Budget for 1985 - 86 Fiscal Year Proposed Expenditures Art work (payments to artists)........................... Fees (Chamber of Commerce, Sec'y State)..... $ 182.50 Liability insurance...................................................... 220.00 Artshow judges.......................................................... 150.00 Supplies (refreshments, office items)............. 100.00 Telephone........................................................................ 20.00 Printing............................................................................ 380.00 Postage............................................................................. 250.00 Circuit change costs (luncheons)......................... 120.00 Rental (Dublin/San Ramon Senior Center)........ 250.00 Rental, sidewalk show space................................. 50.00 Postoffice box............................................................. 22.00 Scholarships................................................................... 75.00 Artshow awards.......................................................... 150.00 Maintenance of chC.w and workshop equipment items............................... 200.00 Expenses of demonstrators & workshops......... 75.00 Gross expenditures..........$ 2844.50 # The figures for the Art shows relate directly to the number of paintings sold, for which the Valley Artists receives a 109 donation as gross income. Sales tax on the art work sold is collected and - remitted to the CA Board of Equalization by the Valley Artists. These figures cannot be estimated, because one cannot predict the sales of the artwork. If one adds the 1984-85 artworks cost to this proposed expenditure budget, the totals for comparison are ($2844.50 + 657.00), or $3501.50 for this proposed budget, as compared to the 1984-85 total ($3749.42 less $88.08 in sales tax and $400.00 non-recurring) or $3261.34 for last year. Elaine Buckland, Treasurer rn n nc i.. /� CoF�r��ary 1 DAB Valley Artists Financial Statement for 1984-85 Fiscal Year Income Membership dues...............:.........................................$ 532.00 Circuit donations................................................... 801.00 Artwork sold............................................................... 769.00 Art show entry fees.................................................. 423.00 Raff les............................................................................ 365.80 Direct public support............................................... 225.00 Workshop fees.............................................................. 220.00 Benefit support (fundraisers).............................. 105.00 Sales taxes collected................................................ 55.62 Gross receipts...............$ 3496.42 Expenditures : Art work (payments to artists).............................. 657.00 Fees (Chamber Commerce, Sec'y State, bank) 114.50 Liability insurance...................................................... 211.00 Sales tax remitted ..................................................... 88.08 Other taxes (DMV)........................................................ 69.00 Artshow judge............................................................. 75.00 Supplies (refreshments, office items, etc.).... 86.33 1 eiephone......................................................................... NON Printing (newsletter, forms, roster, etc.)........ 379.06 D Postage............................................................................. 227.91 Circuit change costs (luncheons)................:........... 113. 17 Rental (Dublin/San Ramon Senior Center)......... 250.00 Rental, sidewalk show space.................................. 25.00 Post office box.............................................................. 22.00 Scholarships................................................................... 75.00 Art show awards.......................................................... 150.00 - Expenses of demonstrators &workshops........... 806.66 Equipment........................................................................ 400.00 Gross expenditures......$ 3749.71 Gross receipts.............. 3496.42 Fiscal year loss............$ 253.29 Elaine Buckland, Treasurer EB/HIS/a �� February 1986 STATE_ OF CALIFO[IN IA J /) FRANCHISE TAX BOARD '" '/ SA(:(IAMFNTO CALIFMINIA n5RG7 February 3 , 1982 In reply refer to 342 : R: vm: g Valley Artists P . 0 . Box 2343 Dublin, CA 94566 .Purpose Social Welfare Code Section 23701± Foam of organization Corporation - 'Accounting Period Ending : August 31 Organization Number On the basis of your stated purposes and the understanding that your present operations will continue or will be as proposed in your application, you are exempt from state franchise or income tax under the section of the Revenue and Taxation Code indicated above . Any changes in operation, character or purposes must be reported to this office immediately for consideration of their effect upon your exempt status . You also must report any change in name or address . You are required to file Form 199 ( Exempt Organization Annual Information Return) or Form 199B (Exempt Organization Annual Information Statement) on or before the 15th day of the 5th month ( 4 1/2 months ) after the close of your accounting period . See annual instructions with forms for requirements . You are not• required to file state Franchise or income tart returns unless you have income subject to the unrelated business income tax under Section 23731 of the Code . In this event, you are zequized to file Form '109 ( Exempt Organization Business Income, Tax Return) by the 15th day of the 5th month ( 4 1/2 months ) after the close of your annual accounting period . If the organization is incorporating , this approval will expire unless incorporation is completed with the Secretary of State within 60 days . Exemption from federal income or other taxes and other state taxes requires separate applications . This exemption is granted on the express condition that the organization will secure federal exempt status with the Internal Revenue Service and will furnish a copy of the final determination letter to the Franchise Tax Board . J . Kudo , Supervisor Exempt Organizations Telephone ( 800 ) 852-7050 cc : John Kramer Secretary of State Registrar of Charitable Trusts COPY Code. Ii' you are subject to this tax, you must file an incomo tax return on Form 990-1'. In this letter we are not determining whether any of your preseriL or proposed activities nre unrelated trade or business as defined in Codo section 513. You need an employer identification number even if you have no employees. If an employer identification number was not entered' on your application, a number will be assigned to you and you will be advised of it. Please use that number oil all returns you file and in all correspondence with the Internal Revenue Service. Because this letter could help resolve any questions about your exempt status, you should keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter. Sincerely yours, District Director Contributions made to you are not deductible by the donors as charitable contributions as defined in section 170(c) of the Code. Leitcr 948([)0) (3-79) titernal Revenue Service L Dcpa/rtniul tf the Treasury Di'strica Director 1 , Date: v S E P 1982 Employer Identification Number: Q + U 94-2804441 Internal Revenue Code Section 501(c)( 4 ) Valley Artist Accounting Period Endinl;: P.O. Box 2343 Dublin, California 94566 August 31 Form 990 Required: f2 Ycs 0 No Person to Contact: C�ti� t Tt �t�o�n� Number: (415) 556-5353 Dear Applicant: Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from Federal income tax under the provisiotls of the Internal Revenue Code section indicated above . Unless specifically excepted, you are liable for tares under the Federal Insurance Contributions Act (social security taxes) for each employee to whom ycu pay 5100 or more during a calendar year. And, uinless excepted, you are also liable for tax under the Federal Unemployment Tax Act for each-employee to whom you pay a50 or more during a calendar quarter if, during the current or preceding calendar year, you had one or more employees at any time in each of 20 calendar weeks or you paid wages of $1,500 or more in any calendar quarter. If you have any questions about excise, employment or other Federal taxes, please address them to this uifioc. If your purposes, character, or method of operation change, please let us know so ,e can consider the effect of the change on your exempt status. Also, you should inform us of all changes in your name or address. The block checked at the top of this letter shows whether you must file Form 990, Return of Organization Exempt from Income Tax. If the Yes box is checked, ,you are only required to file Form 990 if your gross receipts each year are normally more than $10,000. If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. The law provides _ for a penalty of $10 a day, up to a maximum of $5,000, when a return is filed late, unless there is reasonable cause for the delay. This penalty may also be charged if a return is 'not complete. So, please mako sure your return is complete before you file it. You are not required to file Federal income tai: returns unless, you are subject to the tax on unrelated business income under section 511 of the Internal Revenue - P.0. Box 36040, San Francisco, Calif. 94102 Letter 948(DO) (3-79)