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msar-riders - Re: [MSAR] Starting MSAR unit-organizing the organization

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Subject: Mounted search and rescue

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  • From: "IRVIN LICHTENSTEIN" <ilichten1@verizon.net>
  • To: "'Mounted search and rescue'" <msar-riders@lists.ibiblio.org>
  • Subject: Re: [MSAR] Starting MSAR unit-organizing the organization
  • Date: Fri, 18 Aug 2006 19:31:06 -0400

To further elaborate on organizing the organization-- In some jurisdictions
it may not matter how you are legally organized. Unincorporated
associations, non-profit non-stock corporations, corporations all have
certain advantages in certain states. In PA you cannot be state tax exempt
or solicit funds unless you have a letter of determination from the IRS
under one of the section 501 provisions, usually (c)(3) but others can
qualify. To avoid FCC filing fees for radio licenses you need a letter from
the IRS. Filing for an IRS ruling costs from $150 depending on gross revenue
estimates or history. And the forms are fun to fill out.
Being organized means having articles of incorporation (if applicable),
bylaws and some officers. Evidence of existence includes a bank account in
the organization's name with 2 or more signatures required if you expect to
handle significant sums.

You will probably need insurance. The most basic is public liability for
the organization and its members. Some states have sovereign immunity which
means that a public entity cannot be sued. In PA there is a damage cap for
municipalities. On the other hand your members may not be public entities
and can be sued for their individual actions or the actions of the
association. Board members can be sued by the organization for wrongful acts
and for official actions taken on behalf of the organization. PA has an
indemnification statute for volunteer board members which makes the
organization responsible for official acts, not the board member. If you are
an employer according to your state's laws you will need workman's
compensation insurance, and there are healthy fines for not having it.
Again, in PA there is a statute that makes the municipality the emergency
response organization is resident in responsible for comp. Contact a
specialty carrier like VFIS for information about insurance. Their policies
include liability, member liability, borrowed/rented equipment, fiduciary
bonds for treasurers, errors and omissions/directors provisions, and Good
Samaritan coverage.

And of course this takes real money so you will have to identify a source of
funding.

Irv Lichtenstein





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