Incorporation redux

[Evan Leibovitch]

Scott Elcomb wrote:

>>Having a national body that is
>>incorporated (Linux Verband, Japan Linux Association, AFUL, Linux
>>Australia) which unincorporated local groups can use for infrastructure
>>as necessary is a globally proven, efficient and successful model. Even
>>Linux International can be (and has been) used in this context. And it
>>also worked in Canada, for many years before GTALUG existed.
>>    
>>
>
>This has probably be answered before, but what things, in terms of
>infrastucture, do these national bodies provide?
>  
>
The most obvious one is to provide an "entity" for the purpose of 
signing any kind of contract, so individual LUG members can't be held 
liable for signing on behalf of the group.

The most popular use of this has been in the contracting of floor space 
for trade shows. Even when it's free, someone's gotta sign something. 
CLUE has a long history of providing a legal entity capable of obtaining 
booth space on behalf of unincorporated groups. This capability was also 
used to sign a lease at what was once the CLUE Linux Centre on Eastern 
Avenue a few years back. Many of the volunteers were TLUG people but 
CLUE did the paperwork.

Also, if there are short-term projects that require the handling of 
money, sometime that is also best handled by an incorporated body. After 
all, most non-incorporated groups don't have dedicated bank accounts, 
while most responsible non-profit corps should go through periodic 
audits (more expense).

The possibilities are endless. Anytime a local group wants to do a 
project that requires signing something -- even if it's for booking 
meeting space -- it's best to get the incorporated body in there to keep 
any individual for taking legal/financial responsibility for the whole 
group. That way there's only one group in each country that *needs* to 
be incorporated, the unincorporated groups use it as necessary since 
incorporation is both an up-front and an ongoing expense (both in money 
and time). And most LUG volunteers would rather be doing geek and 
advocacy stuff than admin.

>Tiresome, yes.  But also valuable.  I don't think the story's finished
>- and may not be for several months yet.  I think the only way this
>conversation (over a few threads) will lose value is if we _stop_
>discussing it.
>  
>
I just don't want to keep being the contrary one ;-).

- Evan

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