GPLA
plans to present bond Would ask taxpayers for $660,000 By Elizabeth Prata
Gray--The
Gray Public Library Association (GPLA) has recently
been awarded a coveted status, that of a tax-exempt
corporation. They are listed as a public charity
and one of their missions is to raise funds for
capital improvements for the Library.
Part of gaining this designation is presenting a
statement to the IRS containing financial data.
(see below) This includes a budget with income and
expenses. The GPLA, on their statement of finances,
lists in their proposed budget for 2007, a $660,000
'local bond issue.'
The Monument asked GPLA President and signatory
on the IRS application Ray Clark to explain the
upcoming bond that the GPLA planned to present.
The listing of a $660,000 bond was surprising because
Mr. Clark had been writing editorials in The Gray
News stating, on June 10, 2005, for example, "The
GPLA's plan is to raise money through a variety
of sources to refurbish the Institute itself in
order to make it safe and usable. The GPLA would
then enter into a long-term, low-cost lease arrangement
with the Town that would commit the building to
be used as a Library. If those efforts are ultimately
successful, the Town would gain an expanded Library
at little or no cost to the taxpayers," and
on July 8, 2005, "We thought that by raising
the money for rehabbing Pennell, we would be saving
the Town a million dollars or so, and we thought
the taxpayers would like that."
When contacted by The Monument on Monday, Mr. Clark
initially denied that a proposed bond existed. He
said that it was a rumor, writing, "So far
as I know, this is fiction. There is no bond issue.
Please tell me where you heard this rumor."
When informed that the reporter was viewing the
GPLA IRS packet, which is public access information,
Mr. Clark recanted. He then wrote, "I forgot
all about that. It is a contingency, put there only
as a possibility."
Mr. Clark explained that the proposed bond for two
thirds of a million dollars was a contingency, but
source documentation on the financial data sheet
did not contain the word 'contingency' anywhere
on it.
The designation allows the GPLA to receive tax deductible
bequests, transfers, or gifts. They are to be treated
as a public charity, the IRS confirmation letter
describes.
A tax-exempt corporation is different from a non-profit
corporation in that a 501 (c) (3) is overseen by
the Federal Agency of the IRS and donations to the
organization are tax deductible. Donations to a
Maine non-profit corporation, such as the Gray Fire-Rescue
Association, are not tax deductible.Gaining acceptance
from the IRS to become a 501 (c ) (3) tax exempt
corporation is loaded with paperwork, detailed proposals
to the IRS, avoidance of certain activities such
as attempting to influence legislation, and takes
a lot of time. The application process is so complex
that applicants often hire legal counsel to aid
them in the lengthy process. The GPLA used the services
of Dan Walker and Beth Sellers of Bernstein, Shur,
Sawyer and Nelson to aid the Directors in their
quest for the important status.
A subsequent editorial on July 22, 2005 from GPLA
President Mr. Clark posed the question in The Gray
News, "If the GPLA-for whatever reason-is unable
to raise all the money needed for the building's
rehab, who will pay the difference?"
