Joe M:
NACHI is not just a non-profit organization, but is also a Federally tax-exempt organization. Two very different things. Anyway, we are not permitted to have a net profit.
The IRS only says that they cannot be organized for personal profit to individuals and shareholders, not that you cannot generate more income than you spend. It is good business practice to have a rainy day fund and cash on hand.
You will note where they even mention a business league or trade association that only makes enough money for self subsistance as an exception:
Similarly a “not-for-profit” does not mean that no net profit is allowed to be generated, but rather that it may not be distributed to or for the benefit of any individuals or shareholders.
Yea, Nick. Gosh. Don’t you know anything about money and stuff? Does Joe Michalski have to teach you everything? 
Jeeze Joe, I didn’t know that. I’d better not start or buy a 33rd corp. Running 32 of them as I do now is bad enough. :shock: 
Anyway, you can keep some reserves without jeapordizing your tax exempt status but one of the successful scams run by tax-exempt orgs is to build up big reserves over years then pay it out at the end of the life of the org in a manner which violates tax exempt status causing them to lose it, but too late… the money is already gone. To avoid the appearance of that being our secret plan, especially since I’ve personally been accused of planning to do just that, we keep the IRS auditors happy and our critic’s mouths shut by spending every penny of membership dues creating more free member services. I think this is evident (even to the very ignorant) when one looks at all we do and how little we do it with: www.nachi.org/whats_new.htm
Also, the $300,000.00+ more that we collected in 2006 over 2005 and our total revenue under-represents our true growth and size as our largest chapters were spun off into their own separate corporate entities in early 2006.
Funny, Jim - but the quote from Nick is “We are not permitted to have net profit.” Yet in his next post he says, ‘well, ok, we are BUT…’ So apparantly, he either misunderstood, misspoke, or mistated the case, either way, it was incorrect information.
Maybe if he would state something accurately and truthfully from the jump, without spin, there would be no need for clarification.
As a matter of note with a non profit – profit is not really profit but $$ that go into a big rain bucket (fund accounting 101)
Call it want you want but it is retained earnings so to speak
All is how it should be
rlb
Joe M… Be careful,If you keep questioning nicks statements you might get listed with the thousands of other “Stupid” per nick, inspectors that also read between the BS, like 99 % renewals claims and all the money is spent on member benefits:twisted: :twisted:
Heck as one of the "stupid " ones, I laugh at the fact , per nicks claims, nachi spends apx 3900 a day, hmmm with 17,000 balance nachi has only 4 days of rainy day funds.
And busshy worries about ASHI making adjustments to balance their annual budget.:roll: :roll: :roll:
I guess if you look on the bright side, if you don’t have any money to budget what worry about it, just tell members, don’t worry about it.:mrgreen: :mrgreen:
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Wow…ASHI not only has the world’s best home inspectors, but the world’s best financial advisors, too. Better get back to your HQ, guys. They need you very badly…
Joe M: writes:
No I didn’t. Read it again more slowly.
Dan,
If you peel away everything we do that makes NACHI better every day, our operational costs (what we need to float along, doing nothing, like some other associations do) would be under $400,000.00, leaving net earnings in excess of a million dollars a year.
One of the biggest problems Chris and I have (Chris and I basically constitute what one would normally call a Development Committe if we had a formal one) is how to spend the money, especially since a smaller portion of our gross revenue goes to operations each year. Our limitiations are due to lack of creativity, not lack of funds.
I’ll tell you something to illustrate: People make much of the fact that PRO-LAB gave us 100,000.00 to upstart NACHI TV but the truth is even much more. When I came up with the project I called JM and told him about it and told him to send me some money to upstart it. He told me he'd talk to the accountant and get me what he could. A few days later a law firm from Denver called and arranged to have someone drop off the . I swear that I had no clue as to how much it was going to be, but I guessed it to be in the tens of thousands. Anyway, 2 lawyers showed up, so I knew it was a wad. I was right. They tried to deliver 4 checks, 3 post dated totalling over a million dollars. I didn’t accept them of course. It would have put too much pressure on us to do something new and exciting with it. So I called JM, told him it was too much and using my strong negotiating skills, was able to get him down to $100K.
The point of me telling you this is to explain that NACHI has a big problem to deal with soon and it isn’t a financial one. It is a creative one.
**The point of me telling you this is to explain that NACHI has a big problem to deal with soon and it isn’t a financial one. It is a creative one.
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Boy… is that an understatement**.**
After seeing all your prior BS bragging, I was lead to believe nachi was creative all along and putting all other orgs to shame.:roll: :roll:
I cannot wait to see your next creative move .
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I disagree. I think the manner in which he killed the nonachi.blogspot.com BS was very creative. And effective.
dang, I missed the comment.
You didn’t miss much.
OK. I did. Here they are:
Post #41:
Post #44
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I guess you see a big difference between my paraphrase of ‘well we are allowed to, BUT’ and your direct quote of “Anyway you can keep some reserves…but”
Would not such reserves be generated from a net profit?
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I’m pretty sure that one can have a “gross profit” and still have a net profit of zero? If not, there would be a whole bunch of CPAs looking for another line of work.
What we have here is a bunch of armchair accountants and wannabe tax lawyers pontificating about tax law.:roll:
As if they actually know enough to determine if NACHI’s books are in order.
Good grief, stick to home inspecting.
It all started with some simple math that does not add up to Nick’s claim of close to 10,000 members.
Still haven’t cleared up that bit of mis-information
Why does it bother you so much?:roll:
Afterall you not a member of the bigest and best HI organization.