[HCoop-Discuss] Fwd: Re: [#141372549] Whether we qualify for Checkout

[Nathan Kennedy]

I don't think the reply really understood your question re: donations 
given that his conclusion contradicts his premise, and I think if you 
framed it differently you would have gotten a different answer.  Even a 
lot of nonprofit lawyers don't understand the lesser-known subdivisions 
of 501(c).  According to the reply below, and the website, since we are 
tax-exempt, it's displayed to the public, and not under subdivisions 
(1), (2), or (14), we should be fine for taking donations too.  They 
even explicitly allow political fundraising.  In any event I wouldn't 
worry about the distinction too much, since we're in the service 
business, not the "accepting donations" business.

As far as signing up and announcing it, I agree with you.

-Nathan


Franklin Gordon Bynum wrote:
> So we may use Google Checkout provided that we do not use it for 
> "donations" to the co-op.  We may only use it to pay for services.  I 
> made clear that we're talking about funding prepaid balances-- 
> something specifically forbidden under the rules the last time we 
> checked but now not on the "forbidden" list-- and they still said it 
> was ok.
>
> So, Adam or whoever, you should sign up for this, presumably by 
> creating an Hcoop Google account/gmail address.
>
> I think an Hcoop-Announce message would be appropriate, too.  In the 
> message, I would add that Google is still offering $10 "free money" 
> for new users of Checkout.  Given the co-op's needs, I would encourage 
> our members to fund their accounts with whatever amount they can 
> afford, then increase that amount by the "free" Google $10.
>
> frank
>
> ------------------------------------------------------------------------
>
> Subject:
> Re: [#141372549] Whether we qualify for Checkout
> From:
> "Google Checkout Team" <checkout-merchant-support at google.com>
> Date:
> Mon, 30 Apr 2007 10:39:12 -0700
> To:
> frank at hcoop.net
>
> To:
> frank at hcoop.net
>
>
> Hello Franklin,
>
> Thank you for your email and interest in Google Checkout. I understand you
> would like to know if you can use Checkout to process payments for
> services as well as to accept donations.
>
> Google Checkout is currently designed primarily for transactions involving
> tangible goods, although transactions for services such as internet
> hosting may be processed as well. However, transactions involving services
> may not be covered by our Chargeback Resolution Policy.
>
> To learn more about Google Checkout chargeback and payment guarantee
> policies, please visit
> http://checkout.google.com/support/sell/bin/topic.py?topic=8666.
>
> For more information about Google Checkout content policies, please visit
> https://checkout.google.com/seller/content_policies.html.
>
> Additionally, please note that Google Checkout is designed for one-time
> transactions involving tangible goods. If you wish, you may also use
> Checkout for billing or subscriptions, although we don't currently offer
> the ability to charge buyers automatically on a recurring basis. 
>
> We look forward to offering more options in the future. For more
> information about Google Checkout content policies, please visit
> https://checkout.google.com/seller/content_policies.html.
>
> In regard to your second concern, in order to use Google Checkout to
> process donations, your organization:
>
> - Must have a legitimate tax-exempt status.
> - Must clearly display the tax-exempt status on its website.
>
> For more information about Google Checkout content policies, please visit
> http://checkout.google.com/seller/content_policies.html.
>
> Therefore, you may not process donations through Google Checkout with a
> 501(c)(12) tax-exempt status.
>
> Please feel free to reply to this email if you have any additional
> questions.
>
> Sincerely,
>
> James
> The Google Checkout Team
>
> ---
>
> No processing fees through the end of 2007 when you use Google Checkout
> http://checkout.google.com/seller/freetransactions.html
>
> Original Message Follows:
> ------------------------
> From: frank at hcoop.net
> Subject: Whether we qualify for Checkout
> Date: Sun, 29 Apr 2007 14:18:18 -0700
>
>
>
>
> Visible_URL: http://hcoop.net/
> Question: In July of 2006 I contacted you on behalf of my organization,
> Hcoop, Inc, asking if we qualified to use checkout for members' payments. 
> At the time, you replied that Checkout was only for tangible goods.
>
> I notice now that the policy has changed, specifically that payments for
> services and donations to 501(c)(3) organizations qualify for Checkout. 
> In light of this, I write today to ask again whether we qualify.
>
> Our organization is a member-owned cooperative that provides internet
> hosting service to its members.  We are incorporated and have 501(c)(12)
> tax-exempt status.  Our members periodically fund their account balance
> using Paypal, and the organizations hosting costs are deducted from that
> balance.
>
> According to your policy, this seems to qualify us to use Checkout as
> payment for a service.  Is this correct?
>
> Also, as a 501(c)-tax-exempt organization, would any payments
> characterized as "donations" be allowed through Checkout, even though we
> qualify under (c)(12) and not (c)(3)?
>
> Even if we don't qualify for the latter, may we still use Checkout for the
> "services" payments?
>
> Thanks very much.
> Order_Number: 
> Name: Franklin Bynum
> Different_contact_email: Yes
> Language: en
> contact_email: frank at hcoop.net
> Login_email: iriefrank at gmail.com
> AdWords_CID: 
> IssueType: other
>
>
>   
> ------------------------------------------------------------------------
>
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