<div dir="ltr"><div><div>I agree that #1 is the optimum course of action, and that the SFC can only transfer funds to another non-profit.<br><br></div>But it also sounds like it could take a while for the 501(c)(3) status to work its way through the IRS process. What happens to the assets in the meantime?<br><br></div>Ron<br></div><div class="gmail_extra"><br><div class="gmail_quote">On Thu, Jan 4, 2018 at 12:01 PM, Ruth Frasur <span dir="ltr"><<a href="mailto:director@hagerstownlibrary.org" target="_blank">director@hagerstownlibrary.org</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="ltr">Mike's comment was my recollection as well.<div><br></div><div>#1 is the only option apart from transferring everything (including Evergreen TM) to MOBIUS which isn't what my understanding of this move would entail.</div></div><div class="gmail_extra"><br><div class="gmail_quote">On Thu, Jan 4, 2018 at 11:56 AM, Mike Rylander <span dir="ltr"><<a href="mailto:mrylander@gmail.com" target="_blank">mrylander@gmail.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">Thanks, Tim.<br>
<br>
Just as a note, per the existing SFC agreement, if I recall correctly,<br>
the SFC can only transfer ownership and funds to a 501(c)(3). So the<br>
association routes involving assignment and transfer to such an entity<br>
are not possible. Only plans where a new Evergreen nonprofit with<br>
exempt status, or MOBIUS itself, is the assignee are possible as far<br>
as I can tell.<br>
<br>
--<br>
Mike Rylander<br>
| President<br>
| Equinox Open Library Initiative<br>
| phone: 1-877-OPEN-ILS (673-6457)<br>
| email: <a href="mailto:miker@equinoxinitiative.org" target="_blank">miker@equinoxinitiative.org</a><br>
| web: <a href="http://equinoxinitiative.org" rel="noreferrer" target="_blank">http://equinoxinitiative.org</a><br>
<div class="m_4349567478428328215HOEnZb"><div class="m_4349567478428328215h5"><br>
<br>
On Thu, Jan 4, 2018 at 11:33 AM, Timothy Spindler <<a href="mailto:tspindler@cwmars.org" target="_blank">tspindler@cwmars.org</a>> wrote:<br>
> Donna Bacon (Executive Director of MOBIUS) sent options for how we might<br>
> work with MOBIUS to handle the Evergreen project. The following are the<br>
> options for how we might contract with them from their attorney. Scenario 1<br>
> and 4 are the more traditional ways we have talked about. In Scenario 1, we<br>
> move forward forming a non-profit for for the Evergreen Project that would<br>
> then contract with MOBIUS. If we went with their attorney, they word<br>
> incorporate Evergreen in Missouri. We could begin this process and MOBIUS<br>
> could still handle the contracts for the 2019 conference until the Evergreen<br>
> Non-profit is complete. In Scenario 2, the EOB members would sign the<br>
> agreement similarly to what was done with the SFC. There are two other<br>
> scenarios which are variations. Donna is willing to support the board with<br>
> any of these options.<br>
><br>
> I will have this on the agenda for discussion at the next board meeting.<br>
><br>
> FROM MOBIUS' ATTORNEYS:<br>
><br>
> As a follow up to our call on Friday, we want to outline some of Evergreen<br>
> Project’s (“Evergreen Project”) options regarding moving from the Software<br>
> Freedom Conservancy (“SFC”) to MOBIUS for its services, with the target goal<br>
> of transitioning on June 1, 2018. As you know, Evergreen is not currently a<br>
> separate entity and its trademark is owned by SFC and its funds are held by<br>
> SFC in a segregated account under SFC’s name, so any transfer will require<br>
> the cooperation and consent of SFC.<br>
><br>
><br>
><br>
> Please note, we have prepared this summary for the benefit and in connection<br>
> with our representation of MOBIUS. Nothing herein creates an<br>
> attorney-client relationship between this firm and the Evergreen Project.<br>
><br>
><br>
><br>
> In general, Evergreen’s options are:<br>
><br>
><br>
><br>
> Scenario #1- Recommended Approach<br>
><br>
> (1) Form a non-profit entity for Evergreen and apply for tax exemptions;<br>
><br>
> (2) SFC assigns the trademark and transfers any and all assets its holds<br>
> for Evergreen Project (including the deposit account) to the new entity;<br>
><br>
> (3) SFC transfers the funds to an account held in the name of Evergreen<br>
> entity; and<br>
><br>
> (4) The new entity and MOBIUS enter into a contract for MOBIUS to perform<br>
> certain management services.<br>
><br>
><br>
><br>
> Scenario #2<br>
><br>
> (1) Evergreen, as an unincorporated association of its members, enters<br>
> into a contract with MOBIUS for MOBIUS to perform certain management<br>
> services (EOB members will need to sign the contract);<br>
><br>
> (2) SFC assigns the trademark to all of the members of Evergreen, as an<br>
> unincorporated association;<br>
><br>
> (3) SFC transfers the funds to an account in the name of Evergreen, as an<br>
> unincorporated association (all EOB members will need to sign<br>
> authorization);<br>
><br>
> (4) Form a non-profit entity for Evergreen and apply for tax exemptions;<br>
><br>
> (5) Assign the MOBIUS contract to the new entity; and<br>
><br>
> (6) Assign the trademark to the new entity (signatures of all members<br>
> will need to be obtained).<br>
><br>
><br>
><br>
> Scenario #3<br>
><br>
> (1) Evergreen, as an unincorporated association of its members, enters<br>
> into a contract with MOBIUS for MOBIUS to perform certain management<br>
> services;<br>
><br>
> (2) SFC keeps ownership of the trademark until a new entity is formed<br>
> (SFC will need to consent to any enforcement action, Evergreen will be<br>
> relying on SFC to make any necessary filings to continue the mark, and SFC<br>
> may charge a fee for this);<br>
><br>
> (3) SFC transfers the funds to an account in the name of Evergreen, as an<br>
> unincorporated association (all EOB members will need to sign<br>
> authorization);<br>
><br>
> (4) Form a non-profit entity for Evergreen and apply for tax exemptions;<br>
><br>
> (5) Assign the MOBIUS contract to the new entity; and<br>
><br>
> (6) Assign the trademark to the new entity.<br>
><br>
><br>
><br>
> Scenario #4<br>
><br>
> (1) Evergreen, as an unincorporated association of its members, enters<br>
> into a contract with MOBIUS for MOBIUS to perform certain management<br>
> services;<br>
><br>
> (2) SFC transfers the funds to an account in the name of Evergreen, as an<br>
> unincorporated association (all EOB members will need to sign<br>
> authorization);<br>
><br>
> (3) SFC assigns the trademark to all of the members of Evergreen, as an<br>
> unincorporated association; and<br>
><br>
> (4) No new entity is formed.<br>
><br>
><br>
><br>
> We recommend forming an entity for Evergreen for a number of reasons, but,<br>
> in particular, it will help protect the members from personal liability for<br>
> the obligations and liabilities of Evergreen Project (protection they do not<br>
> currently have), it will eliminate assignment issues if any member dies,<br>
> dissolves, or has leadership change, it will make obtaining insurance<br>
> policies to cover items like slip and fall accidents at the conference<br>
> easier (the entity can obtain the policy rather than a policy naming all of<br>
> the individual members), and it will make it easier for filing taxes by<br>
> allowing an entity to report taxes rather than passing it through to all the<br>
> members of the unincorporated association. Having Evergreen as its own<br>
> entity will also make trademark administration easier as it will not require<br>
> involving SFC or all of the members, depending on the above scenarios, to<br>
> take enforcement actions to protect the trademark or sign off on filings to<br>
> continue the mark.<br>
><br>
><br>
><br>
> In general, forming a Missouri non-profit corporation, for the basic<br>
> documents, will cost approximately $1500 if our firm handles the work. This<br>
> does not include the cost of any accountants or legal fees to obtain tax<br>
> exemptions for the organizations. The actual entity formation can be<br>
> completed in a couple of weeks, though the tax applications take longer.<br>
> Trademark assignment filing fees should be approximately $50, plus $250-500<br>
> in attorneys’ fees to complete the assignment. Note, in the case of<br>
> assigning to the general partners, due to the number of parties involved,<br>
> filing fees and attorneys’ fees will be higher.<br>
><br>
> _________<br>
><br>
> Tim Spindler | Executive Director | C/W MARS<br>
><br>
> <a href="mailto:tspindler@cwmars.org" target="_blank">tspindler@cwmars.org</a> | <a href="tel:508-755-3323%20x120" value="+15087553323" target="_blank">508-755-3323 x120</a><br>
><br>
> <a href="http://www.cwmars.org" rel="noreferrer" target="_blank">http://www.cwmars.org</a><br>
><br>
><br>
><br>
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</font></span></div></div></blockquote></div><span class="HOEnZb"><font color="#888888"><br><br clear="all"><div><br></div>-- <br><div class="m_4349567478428328215gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><span style="font-size:12.8000001907349px">Ruth Frasur</span><br style="font-size:12.8000001907349px"><span style="font-size:12.8000001907349px">Director of the Historic(ally Awesome) Hagerstown - Jefferson Township Library</span><br style="font-size:12.8000001907349px"><span style="font-size:12.8000001907349px">10 W. College Street in Hagerstown, Indiana (47346)</span><br style="font-size:12.8000001907349px"><span style="font-size:12.8000001907349px">p <a href="tel:(765)%20489-5632" value="+17654895632" target="_blank">(765) 489-5632</a>; f <a href="tel:(765)%20489-5808" value="+17654895808" target="_blank">(765) 489-5808</a></span><br style="font-size:12.8000001907349px"><br style="font-size:12.8000001907349px"><b><a href="http://hagerstownlibrary.org" target="_blank">Our Kickin' Website</a>, <a href="http://facebook.com/hjtplibrary" target="_blank">Our Rockin' Facebook Page</a>, and <a href="http://nettlecreekplayers.com" target="_blank">The Nettle Creek Players</a></b><br></div></div></div></div></div></div></div></div></div></div>
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<br></blockquote></div><br><br clear="all"><br>-- <br><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div><div><div>Ronald A. Gagnon<br></div>Executive Director<br></div>North Of Boston Library Exchange (NOBLE)<br></div>Danvers, Massachusetts 01923<br>978-777-8844<br></div><a href="http://www.noblenet.org" target="_blank">www.noblenet.org</a><br></div></div>
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