The Mudcat Café TM
Thread #24663   Message #709322
Posted By: GUEST
12-May-02 - 12:50 AM
Thread Name: Can we have some Mudcat accounts?
Subject: RE: Can we have some Mudcat accounts?
As it isn't possible to ascertain what the amount of receipts are for Mudcat/Digitrad from this website, how is a person to be able to determine if this is a legitimate site to contribute to, regardless of whether or not one's contribution is tax deductible?

On the solicitation page, Max states:

"So how can we be supported?

I own a company called Onstage Media, Inc. which does nothing less than finance the entire Mudcat operations. Dick finances the Digitrad with his pocket change and an occasional grant. Both Dick and I benefit a great deal from the success of Onstage. One very certain way to benefit The Mudcat and Digitrad is to refer business to Onstage Media, Inc., and its clients. You can link to Onstage's Web site throughout the mudcat as well as here to find out more about us. Onstage will donate 10% of all income from work referred through the Mudcat to the Mudcat and Digitrad."

It isn't at all clear what the legal relationships are between Mudcat Cafe, Digital Tradition, and Onstage Media. When I see that information on the solicitation page, I wonder if there isn't an issue of "Unrelated Business Income" that could conceivably put the non-profit entity(ies) over the $25,000 mark annually. So I go to Guidestar and the PA Dept of Charities websites to search the databases for info on 990s, and nothing shows up.

I know however, the IRS also requires a Solicitation Notice be given making these things clear, regardless of the amount of receipts. From the IRS Charities and Non-profit website:

"Section 6113 provides that certain tax-exempt organizations that are not eligible to receive tax deductible charitable contributions must disclose in "an express statement (in a conspicuous and easily recognizable format)" that contributions to the organization are not deductible for Federal income tax purposes as charitable contributions. This provision applies to organizations that are not eligible to receive deductible charitable contributions and are described in either § 501(c), § 501(d), or § 527. The Service issued Notice 88-120 to provide safe harbors for meeting the requirements of § 6113."

Then on the home page, Max says:

"...the Mudcat Cafe and Digital Tradition, both registered non-profit organizations."

So I ask in the forum about all this conflicting information and after a few good sized boulders are heaved my way by people with a lot more loyalty than knowledge, Dick chimes in "Digital Tradition is a non-profit since 1988."

To long-time members who clearly trust the site owners, I am not surprised in the least that these don't look like strange irregularities and inconsistencies to you. But I assure you, as someone coming in from the outside, and reading in threads, on the home page, and on the solicitation page all the ways you can support Max and Mudcat, and Dick and Digital Tradition, it does look somewhat irregular (to be polite).

If raising the issue on a website forum which is claiming non-profit status on the homepage makes me a jerk in the membership's eyes, so be it. Speaking up and asking the question isn't the problem, the way the information is displayed on the website is, which doesn't exactly make this site look legit and above board.

My donation is the suggestion that the site owners clean up their acts, and make things perfectly clear.