[Owasp-leaders] OWASP charitable status (was: Re: OWASP Election)

Robert Shullich robert.shullich at owasp.org
Sun Oct 11 03:55:36 UTC 2015

In the USA "anyone" is not true.

As a 501 c(3) anyone donating, may be eligible to deduct - within certain limits and thresholds - under a Schedule A under charitable donations, which means you also need to itemize your 1040.

Corporate sponsors on the other hand would not be doing this. They would most likely be deducting sponsorships as business expenses.

Also, individuals - even if not a 501 c(3) - can deduct dues and probably some donations as business expenses, which requires a Schedule C (if they run a business) or as an individual, itemize on a schedule A but is subject to anything over 2% 

So in the USA I don't see corporate sponsorship being affected. I have no idea why we would lose 25% of membership, 

As I said before, and no one seemed to have any opinion or comment -

Is to consider making a 501c6 organization for OWASP for the membership and keep the OWASP foundation mainly for receiving and managing donations

The concept of having the membership as a 501c6 and a side foundation as a 501c3 is the current structure of ASIS, (ISC)2, and ISACA, to name a few. I don't see converting OWASP  to this model as impossible, but will take a lot of work, budget, and filing new corporate papers as well as new tax determination letters.

As a 501c6 - OWASP would still be tax exempt non profit, but not a charitable organization. The foundation would remain a charitable non-profit and still collect donations, and should be able to pass most of those donations over to the 501c6.

I don't know what the advantages of doing this, but almost everyone else is doing this, even universities, so there must be some benefit.

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Robert Shullich, CPP, CISSP, CISM, GSEC, CIPP/US
Enterprise Security Architect
Tower Group Companies
Pro Box 026156
Brooklyn NY 11202
(201) 291-7432 (Direct)
(201) 221-8767 (Fax)
(908) 419-5417 (Mobile)

> On Oct 10, 2015, at 8:40 PM, Kevin W. Wall <kevin.w.wall at gmail.com> wrote:
> On Thu, Oct 8, 2015 at 2:36 PM, Jim Manico <jim.manico at owasp.org> wrote
>> Larry Conklin wrote:
>>> Hey Jim can you please list what we would loose (we don't really gain
>>> anything but we lose a lot.) if we moved to a 501(c)(6) organization?
>> OWASP would lose 25% of of it's active membership, including myself, if it
>> stopped being a charity. Also, anyone donating money to OWASP would lose the
>> ability to deduct those funds. Trade associations are mostly vendor run and
>> self funded. This is the exact opposite direction I think OWASP should be
>> going in, IMO.
> Apologies for joining this thread late; I'm way behind on personal emails.
> If it's true that "anyone donating money to OWASP would lose the
> ability to deduct those funds", then my speculation is that OWASP would
> loose a significant portion of its corporate sponsored funding. At least
> that seems the logical conclusion if Jim's statement is true.
> It seems that this is one part of the decision that hasn't been
> mentioned though.
> -kevin
> -- 
> Blog: http://off-the-wall-security.blogspot.com/
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