Chapter websites Best Practices: Selling turnings?

[Ken Grunke]

A question has come up from one of our club members, which I've been wondering about myself for some time being the webmaster for our club.
Our chapter website has a Gallery section where members have personal albums to post woodturning-related pictures. This member wishes to put his turnings on display with prices in hopes of generating some income, and does not yet have his own website for this purpose.
The discussion has just been opened up among the club board members, so I'm not sure what our club policy is but I'm curious to hear what, if any, policies other clubs have in regards to the issue of commercial activity on a chapter's website. Generally, AAW chapters are non-profit organizations but to what degree should that affect the casual selling activity I'm referring to?
My own website, which is a subdomain of our chapter's site, also has had my turnings listed with prices for quite some time so I figure it behooves me to find out the best way to handle this situation, and set an example for the rest of our membership.
Comments? Especially from other club webmasters 🙂

 

[Bill Boehme]

This is not a Best Practices question -- it is a question regarding IRS regulations. I can't see this being regarded as both a non-profit organization while also acting in behalf of its members to conduct for-profit business. You may also be putting your club's non-profit status in jeopardy if there is any pecunary benefits derived by either party in operating your website as a subdomain of the club's website.

Bill

 

[Joe Greiner]

I second the motion. Check your ISP's features. Many of them have provisions for personal web sites at no additional cost. If yours doesn't, get a new ISP. Move your stuff to your own web site. You can still put a link on your club's web site.

JG

 

[Charlie Harley]

Using a club's web site to commercially advertise sales not only pushes the boundaries of non-profit status, it jumps clean over it.

About the most advertising that's defendable on a non-profit site is having a "swap board" where members buy and sell among themselves.

 

[Brodie Brickey]

Best Practice

Ken,

Set up two websites. One for your chapter with galleries for your members. Additional information links could take the surfer to another site with further galleries, prices, and information about the turner. Your entire group could sell from that site and keep costs down that way while maintaining your non-profit status as a club.

Club members posting to other forums can leave a link to their "homepage" in their signature for others to check out their stuff.

Brodie

 

[john lucas]

We looked into it at one point and decided the only way to do it would be to place the work on the site with prices and then have all contacts be between the owner of the work be handled personally without the club being involved. We decided against it just because it would be a lot of work for the webmaster.
I don't see where the non-profit deal comes in unless your club is a 501C. I would think a club website wouldn't be any different than me having a website and selling unless the club is handling the money or making money on it it someway. I'm totally ignorant on the legalities however so don't listen to what I have to say.

 

[Bill Boehme]

.......I'm totally ignorant on the legalities however so don't listen to what I have to say.

It is a quid pro quo situation because the member is receiving something of tangible value (advertising) as a benefit of membership. Whether the club receives a commission is immaterial.

The idea to list prices and let the individual handle the transaction would not pass muster with the IRS for the reason cited above.

Bill

 

[Ken Grunke]

I also am quite ignorant about matters regarding the IRS and non profit clubs. I agree that my website should not be directly affiliated with the club's, it has just been a matter of convienience for me and no one gave it a second thought. Sales from my website have been very minimal, almost zilch, so I haven't concerned myself with being improper in this way.
I like Brodie's idea. A seperate website, paid for privately by interested members with no direct connection to the club--sort of a for-profit cooperative.
Thanks for the valuable input, everyone.

 

[DeanGThomas]

Revenooers!

I also am quite ignorant about matters regarding the IRS and non profit clubs. I agree that my website should not be directly affiliated with the club's, it has just been a matter of convienience for me and no one gave it a second thought.

I know way too much about IRS and nonprofits. More about IRS, actually. I worked for them and am about to go back to work for them.

Bottom line? If your chapter has its own 501(c)(3) status, you have to walk carefully and stay as squeeky clean as possible. It's just so much easier that way. Don't do anything that could cause questions to be raised. If you're unsure, don't do it! May still be okay, but better safe than audited!

There are probably ways to do what we've been talking about that are both legal and licit, but why play around? Websites are not all that expensive any more. There are still some places where you can actually get free sites to get started with. Set up that cooperative and the price will be small. Donate something from any sale to the pot to pay for it.

One man's opinion, YMMV.