Treasurer's Note: It should be noted that this is a historical document. This document does not necessarily reflect the current realities of the Guild's financial state or organizational plans. It was accurate to the best estimates available to the Guild at the time it was filed.

HWG Application for Recognition of Exemption

Table of Contents

Part I - Identification of Applicant

  1. Name and Address
    • A. Full Name or organization: HTML Writers Guild, Inc.
    • B. c/o Name (if applicable): N/A
    • C. Address: 875 Lawrenceville-Suwanee Rd. Ste. 310-316
    • D. City, state, and Zip: Lawrenceville, GA 30243
  2. Employer identification number: 58-225-8880
  3. Name and telephone # to be contacted: Roxanne Reid-Bennett (907) 696 - 6137
  4. Month the annual accounting period ends: December
  5. Date incorporated or formed: Incorporated: June 13, 1996, Formed: January 1995
  6. Activity codes: (123) (149) (205)
    See the list of IRS Codes for the possibilities.
    Too numerous to list out here, I'll include what these mean:
    • 123: Discussion groups, forums, panels,lectures, etc.
    • 149: Other instruction and training
    • 205: Professional association
    and other "reasonable" options:
    • 030: School, college, trade school, etc.
    • 037: other student society or group
    • 046: private school
    • 126: Apprentice training
    • 200: Business promotion (chamber of commerce, business league, etc.)
    • 204: promotion of fair business practices
  7. Check here if applying under section: <left blank>
    • 501(e) Cooperative hospital service organization
    • 501(f) Cooperative service organization of operating educational organization
    • 501(k) Organization providing child care.
  8. Did the organization previously apply for recognition of exemption under this Code section or under any other section of the Code?: No
  9. Is the organization required to file Form 990 (or Form 990-EZ): No
    If the organization is not required to file Form 990 and is not a private foundation answer "No". Form 990 "not required to file": an organization whose annual gross receipts are normally $25,000 or less. and the "$25,000 gross receipts test". An organization's gross receipts are considered normally to be $25,000 or less if the organization is: (1) Up to a year old and has received, or donors have pledged to give, $37,500 or less during it's first tax year.
  10. Has the organization filed Federal income tax returns or exempt organization information returns?: No We might have to change this one to yes before filing again.. We should get these filed for last year by June 30th, I only asked for a 3 month extension. It's all zeros anyway - so it's not really an issue
  11. Check the box for the type of organization. Be sure to attach a conformed copy of the corresponding documents to the application before mailing.
    • Corporation - Attach a copy of the Articles of Incorporation (including amendments and restatements) showing approval by the appropriate state official; also include a copy of the bylaws. The Articles *might* need fixing for the principal office address as soon as we have a registered agent in the state.
    • Trust - Attach a copy of the Trust Indenture or Agreement; including all appropriate signatures and dates.
    • Association - Attach a copy of the Articles of Association, Constitution, or other creating document, with a declaration or other evidence the organization was formed by adoption of the document by more than one person; also include a copy of the bylaws.
    If the organization is a corporation or an unincorporated association that has not yet adopted bylaws, check here: <left blank>

Part II - Activities and Organizational Information

  1. Provide a detailed narrative description of all the activities of the organization - past, present, and planned. Do not merely refer to or repeat the language in the organizational document. Describe each activity separately in the order of importance. Each description should include, as a minimum, the following (a) a detailed description of the activity including its purpose; (b) when the activity was or will be initiated; and (c) where and by whom the activity will be conducted.
    A. Electronic Discussion Forums
    The Electronic Discussion Forums are supported by list server software run on an internet server and support the resending of electronic mail to "subscribers" of the service. Subscription to the lists is open to members only. These forums are referred to as "the mail lists" within the organization.
    1. Detailed Description
      These are currently used by members of the organization to discuss HTML web page authoring issues. We have 13 discussion groups at this point in time.
      • hwg-basics - The basics of web creation.
      • hwg-business - Marketing, contracts, ethics, sales, etc.
      • hwg-critique - Requests for review of web sites for accessibility, quality of presentation, organization, and browser compatibility.
      • hwg-graphics - Discussion of graphics packages and design issues concerning web based presentation.
      • hwg-theory - Discussion of site design issues such as how to organize data, when to use a particular technique, visual organization, and any other design decision.
      • hwg-html - Discussion of the hypertext markup language and specifications.
      • hwg-newtech - Discussion of the newest Web-related technologies.
      • hwg-servers - Discussion of all aspects of web servers and CGI.
      • hwg-webapps - Discussion of software applications used to support Web Site support and development.
      • hwg-plus-site-mgmt - Discussion specifically related to site management.
      • hwg-plus-marketing - Discussion relating to effective marketing strategies on the Internet.
      • hwg-plus-stylesheets - Discussion specifically relating to cascading stylesheets (CSS).
      • hwg-plus-javascript - Discussion of the javascript language.
      We also maintain several organizational "support" lists to aid in the communication between members and volunteers around the world.
      • hwg-news - the HTML Writers Guild's Membership List and Guild Newsletter
      • hwg-ops - discuss Guild business and related issues.
      • hwg-volunteers - a list for people who want to volunteer for "something" and a place for project coordinators to find people to help projects.
      Finally we maintain several internal management "lists" where volunteers keep in contact with other volunteers for their area of Guild services
      • hwg-mgmt - a list for all the area managers within the Guild.
      • gb - discussions between Governing Board members
      • hwg-mentors - a list for people who are participating in or wish to participate in the Mentor program as instructors (see below).
      • hwg-lmoms - a list for all the discussion list List Guides. (discussed later).
    2. Initiated
      The first mail list was created in October of 1994. That list was named: html-authors-guild. It was moved from one machine to another and renamed hwg-main in the fall of 1995. We split the "traffic" on hwg-main into numerous new mail lists in the summer of 1996 in order to improve the ability of people to concentrate on the topics of specific interest to them. We added the "Plus" lists in May of 1997 as an additional incentive for members to pay membership dues.
    3. Conducted Where and By Whom
      The Mail Lists are supported by automated software that is managed by volunteers. Currently there are 5 different computer servers connected to the Internet that support one or more lists given above. All space and resources are donated to the HWG at this point in time. The Mail List Management Team consists of 2 managers and the volunteers that support their "mission", which is the smooth operation of the mail lists. There is also one Area Manager overseeing the schedule, status, structure, and maintaining the interface between the Executive Committee and the Mail List Management team.
    B. Web Page Reference pages
    The HWG maintains a "homepage" on the Internet that essentially is the front door to the HWG's offices.
    1. Detailed Description
      It contains all the current membership information, reference material for members and the public on web authoring, has private pages used by the volunteers for tracking projects under discussion, and has private pages for paying members with services limited to their use. Additional pages are referred to from the HWG's homepage that are either created and maintained by member volunteers or are created by 3rd parties and are of specific use to our membership. We also maintain a searchable archive of the mail from our discussion groups that is open to the general public.
    2. Initiated
      The HWG homepage was first published in January of 1995. We have had "other related pages" put up by volunteers prior to that date, but we first gathered together a single reference point at that point in time.
    3. Conducted Where and By Whom
      The HWG homepage URL is There are various other pages specifically created for the HWG and maintained by member volunteers that are either stored under the hierarchy or are "off-site" at a location of the volunteer's choosing. We have a webmaster, a system administrator, and a Governing Board contact. Each area of the web site may be maintained by members of another "activity"'s support team or by individual volunteers. Sub-teams of the web site include: the Frequently Asked Questions (FAQ) area, The Utility Management Team (UMT), the Archives Management Team (AMT), the Librarian project, and the Common Gateway Interface (CGI) Script Archives team.
    C. Mentor/Apprentice Program
    The Mentors are Guild members available to work one-on-one with other members to help them learn the various aspects of HTML and Web services.
    1. Detailed Description
      Each situation is taken individually, the Mentor and Apprentice working together to create a personalized program. As a condition of participation, the Apprentice agrees to serve as a Mentor after the instruction period is completed. If you are not prepared to do this, you cannot participate in this program.
    2. Initiated
      This program was started in early 1995. It has been going through a redesign for managing the mentor resources "better", and has been shifted from a completely free service to requiring a paid member level at our essentially "student" rate, called Value member. It is scheduled to reactivate 3rd quarter of 1997.
    3. Conducted Where and By Whom
      Mentors are knowledgeable volunteers or Apprentices who have completed their "training". At this point in time there are 2 people managing the effort and one Governing Board member overseeing the schedule, status, structure, and maintaining the interface between the Executive Committee and the Management staff. When the program was last active, there were 50 volunteer mentors from 10 different countries teaching an average of 3.12 students apiece. Most instruction takes place via electronic mail or interactive relay chat on a schedule determined by the mentor and the apprentice. Any member with a showable knowledge base of one or more specific skill sets may apply to be a mentor. Any member may apply to be an apprentice. An individual's program starts when a mentor is found who can teach what the apprentice would like to learn.
    D. On-Line Classes
    Using interactive tools and a generic web browser or other agent, interactive "live" classes can be established on the Internet to teach the basics of web page design and the issues that relate to "quality" of those pages.
    1. Detailed Description
      The HWG is currently evaluating the feasibility of implementing on-line classes to teach basic "good" web page design techniques. The purpose of the classes would be to not only give students a fundamental (or even advanced) understanding of the techniques usable to generate web pages, but to include the discussion of what would constitute "quality" in the end result. We have members ranging from professional web page designers to hobbyists. Our members create web pages designed specifically for one browser and those that should be reachable for "all" users (including the blind). Our intent is to create a series of classes that teach techniques and quality evaluation based upon the end audience.
    2. Initiated
      Provided the study shows that this program is feasible, implementation will most likely take place 4th quarter 1997.
    3. Conducted Where and By Whom
      The program would be supported on a server either owned or rented by the HWG and would be conducted "on-line" via the Internet to the class members. Teachers would be either paid or volunteer depending upon the results of the feasibility study and the actual results of first trial classes.
    F. IRC Chat channel
    Interactive Relay Chat (IRC) is one method of holding "real-time" conversations between multiple people.
    1. Detailed Description
      The HWG provides and maintains for the membership a IRC (Internet Relay Chat) room. If you have a question, that you need a quick answer to, or would just like to chat with some of the members and get them to know as more than just an email address you may be interested in checking this service out. Occasionally a member with some level of expertise on a particular topic who wishes to share that information will schedule and hold a class via the IRC channel. Notification of these classes is usually done at the web site and/or through one or more of the discussion forums.
    2. Initiated
      This channel was first in operation in the summer of 1996
    3. Conducted Where and By Whom
      To use this service, you will first need to acquire and set up a IRC program. For a wide selection of programs A more complete and up-to-date site for clients is Currently #HWG is set up as a part of the StarLink IRC network. Access to StarLink Servers may come from the following locations:
      • Miami.FL.US.StarLink.Org:6667
      • Rochester.MI.US.StarLink.Org:6667
      • Roseburg.OR.US.StarLink.Org:6667
      • RockHill.SC.US.StarLink.Org:6667
    G. Trade Show Discussion Sessions
    A great deal of information can be transmitted to those who are not members of the Guild at tradeshows.
    1. Detailed Description
      We have the opportunity to take lessons we've learned within the HWG and present that information to other members in the industry by participating in Trade Shows.
    2. Initiated
      We officially attended our first Trade Show in March of 1997. Members presented 2 white papers and managed to provide a local get together of the members to meet "face to face".
    3. Conducted Where and By Whom
      Most if not all our trade show activities will be carried on by either Governing Board members, Corporate Officers, or volunteer members at whatever trade shows the HWG Governing Board chooses to attend "as an organization".
    G. Member Discounts on Commercial Products and Services
    With such a large group (over 50,000) of potential clients, the HWG has been targeted multiple times by vendors for advertising of their products. We have, so far, refused any form of advertising in order to protect the interests of our membership. Notification of new or the possibility of getting discounts on software used in the creation of web sites would actually benefit most if not all of our current members.
    1. Detailed Description
      The HWG approaches vendors on behalf of the members in order to get discounts for the membership based upon their affiliation with the Guild. This service works for the members and the vendors. All of our members have some level of interest in web based application support software and tools. By approaching the vendors we can give them a "ready made market" and by getting a discount, our members get "benefit" as well. With our control between the two, members won't suddenly be flooded with vendor advertising - if they don't wish it.
    2. Initiated
      This program was activated in May of 1997.
    3. Conducted Where and By Whom
      The gathering of vendors is conducted by volunteers within the organization that have experience in performing that kind of work. They work from their homes or offices as necessary.
    H. Request for Proposal Area
    We have a lot of professionals within our organization as well as amateurs and hobbyists. They have expressed a desire to be able to rely on fellow Guild members for services that they themselves cannot (or don't wish) to do. We have proposed a new Request for Proposal area where members could put up an RFP that other members could then respond to work work.
    1. Detailed Description
      This program is being implemented now. In order for a member to take advantage of this service they must be a paying member. Certain pieces of the program will be visible to the general public, and proposals are welcome from members and non-members.
    2. Initiated
      This service is scheduled to start in 3rd quarter 1997.
    3. Conducted Where and By Whom
      The service will be supported via automated software on an Internet Server. Membership will be validated against a member database using an identifier and password. Control of the area and maintenance of the software will be performed by volunteers within the organization.
  2. What are or will be the organization's sources of financial support? List in order of size:
    • Membership dues
    • Donations
    • OnLine Classes
    • Fundraising activities (org based merchandise - e.g. T-Shirts, donated products for auctioning/raffling off)
  3. Describe the organization's fundraising program, both actual and planned, and explain to what extent it has been put into effect. Include details of fundraising activities such as selective mailings, formation of fundraising committees, use of volunteers or professional fundraisers, etc. Attach representative copies of solicitations for financial support.

    The HWG plans on putting together a set of industry based discounts that would be of use to our membership (in general) and then attempt to convert some of our 50,000 Basic members to one of the fee based member levels over the next 6 months.

    We've defined several new categories of membership that allow for both individual and corporations to become supporting members of the Guild. The individual memberships are priced in such a way as to allow most anybody supporting status within the Guild, however we've kept the free membership level for those that can't (or don't want) to support the Guild.
    We have created tiered corporate membership levels aimed at the small and large corporation that supports their own web pages. We have a number of companies with representatives already in the Guild, and we're planning on convincing some of those to become corporate members. We will identify and target specific companies that support web sites that don't have current members through direct mail, email, and press release publications.

    We haven't defined much of the structure of the OnLine Classes yet. Until we've done the basic ground work for how to accomplish these, what content they need to contain to be useful, who might teach them, and frequency, we can't determine whether we'd make these free to paying members, or nominally charge some fee. In either case non-paying members or the public could sign up for a class for a fee on a space available basis. This is a potential fund-raising area for us, but hasn't been specifically targeted and identified as such.

    The HWG has a logo design to represent the Guild and has located a Promotional merchandise vendor for T-Shirts and Sweatshirts to start with. Orders would be taken via a secure web page, 800 number, FAX, email, or postal mail. We are looking at the order/delivery process now and will be using automated software and volunteers to process the orders.

    Our members frequently represent companies that produce products usable by our members. They sometimes donate services or products to the HWG for it's use in supporting member services. These are in general unplanned and unsolicited by the HWG. Those donations that can be used by the HWG are accepted.

    We've had one item successfully auctioned off to raise funds to support the Guild operational expenses. We've had offers for others. Once a "general" method for doing auctions, and it's determined to not conflict with our neutral position in the market place, we'll probably do more of this type of fund raising in the future.

  4. Give the following information about the organization's governing body:
    Name Title(s) Address 
    Kynn Bartlett Vice President, Governing Board Member  5041 N. Sunflower Avenue Covina, CA USA 91724 
    Steve Cherrier Governing Board Member  #4 - 1986 W. 1st Avenue Vancouver, BC, Canada V6J 1G6 
    Kathy E. Gill Governing Board Member  1075 Bellevue Way NE Suite 314 Bellevue WA 98004 
    Ann Navarro Secretary/Treasurer, Governing Board Member  PO Box 2407 Carmel Valley, CA 93924 
    Gerald Oskoboiny Governing Board Member  19 Castle Keep Edmonton, AB CANADA T5X 5K6 
    C. Roxanne Reid-Bennett President, Governing Board Member  16928 Park Place #3 Eagle River, AK USA 99577 
    Albert L Smith, Jr. (Al) Governing Board Member  2217 Victor St. Cincinnati, OH USA 45219 
  5. b. Annual compensation Final figures will be highly dependent upon how much funding the HWG really ends up with, what the overall operational costs are for non-negotiable items, such as server space, and the amount of time each contributor is spending on operation of the HWG. The Governing Board is currently a working board. Each member is involved in one or more aspects of the operation of the Guild at this point. We've created an Executive Director position who shall be developing a paid staff hierarchy to "ease" the Board out from management of the day to day operations over time. Once that happens, the Board will be a pure policy board that will be composed of elected members and will provide vision and policy decisions for the staff.
    • President - 15,000 - 90,000
    • Vice President - 15,000 - 80,000
    • Secretary - 15,000 - 75,000
    • Treasurer - 15,000 - 75,000
    • Executive Director - 40-65K
  6. c. Do any of the above persons serve as members of the governing body by reason of being public officials or being appointed by public officials? No
  7. d. Are any members of the organization's governing body "disqualified persons" with respect to the organization (other than by reason of being a member of the governing body) or do any of the members have either a business or family relationship with "disqualified persons"? No Not applicable at all if we aren't a private foundation
  8. Does the organization control or is it controlled by any other organization? No
  9. Does or will the organization directly or indirectly engage in any of the following transactions with any political organization or other exempt organization (other than a 501(c)(3)organization); (a) grants; (b) purchase or sales of assets; (c) rental of facilities or equipment; (d) loans or loan guarantees; or (g) sharing of facilities, equipment, mailing lists or other assets, or paid employees? No
  10. Is the organization financially accountable to any other organization? No
  11. What assets does the organization have that are used in the performance of its exempt function? If "None". indicate "N/A"
    • Internet Domain Name: This is essentially much like a registered trademark - it is currently operational and provides a generic address (like one 800 phone number) for people to find us at.
    • Donated Virtual account. The server where the domain is serviced from, where all of our web pages are stored, and the database of current members. The data is ours, the storage space is rented for $0 at this point in time (essentially a $220/month value)
    • SCSI Hard drive - donated by a member. This will be installed at the site where our database will reside.
  12. Will the organization be the beneficiary of tax-exempt bond financing within the next 2 years? No
  13. Is the organization a membership organization? Yes
    If "yes" the complete the following:
    • Describe the organization's membership requirements, and attach a schedule of membership fees and dues.
      The dues paying membership structure is
    • Describe the organization's present and proposed efforts to attract members, and attach a copy of any descriptive literature or promotional material used for this purpose. Present efforts include word-of-mouth, member participation in electronic discussions (such as Usenet News and Mail Lists), a member logo that may be displayed by members and the public that, by the rules of usage, must point to our homepage, and a web page. (see

      The Web Page opens with:

      Welcome to The HTML Writers Guild Website, the first international organization of World Wide Web page authors and Internet Publishing professionals. Guild members have access to resources including: HTML and Web business mailing lists, information repositories, and interaction with their peers.

      Current membership (as of 21 January, 1997): 38,581 members in 91 nations worldwide. 

      Proposed efforts will include press-releases, participation in trade-shows, selective participation by volunteers in "other" forums that contain people who could benefit by our services, and mailing of promotional material to corporations with web pages where we don't have any members yet.

    • What benefits do (or will) the members receive in exchange for their payment of dues? Many of our services don't require payment of dues to receive. They will require becoming a member, for which the only requirement is a desire to learn about web authoring and their agreement that they will abide by the charter and bylaws of the organization.
      • Free or discounted entrance into any On-Line classes we hold.
      • Mentor/Apprentice program where they get access to one-on-one tutoring from area experts.
      • Discounts on commercial products.
      • Job and/or networking capability between the professional members.
    • If the organization provides benefits, services, or products, are the recipients required, or will they be required, to pay for them? Yes
      If "Yes" explain how the charges are determined, and attach a copy of the current fee schedule.
      We don't currently have any services that charge a fee, however if we cannot fund a class or discussion through membership dues alone, some fee will be instigated for participation in the "event". In that case Members and the Public would be eligible to attend, members would get a discount.
    • Does or will the organization limit its benefits, services, or products to specific individuals or classes of individuals? Yes
      If "Yes", explain how the recipients or beneficiaries are or will be selected.
      We would limit participation to members only for most of our services. The only requirement for membership is a desire to learn about web authoring and their agreement that they will abide by the bylaws of the organization.
  14. Does or will the organization attempt to influence legislation? No
  15. Does or will the organization intervene in any way in political campaigns, including the publication or distribution of statements? Yes
    If "Yes", explain fully.
    Due to the usually high interest in political process, especially with the changes in the telecommunications industry, our members are usually interested in new developments in Washington (and other countries). As a result it is not unusual for a member or volunteer to post "informational" messages that are politically based. (Such as Congress is looking at the telecom bill, here's the URL for the text). Our involvement would be limited to the expansion of awareness of current events or legal requirements as a result of political process. We would not be endorsing any particular political position as an organization.

Part III - Technical Requirements

  1. Are you filing Form 1023 within 15 months from the end of the month in which your organization was created or formed? Yes
    This is debatable if you take from "incorporation" or from inception, according to the IRS it's from incorporation.
  2. If one of the exceptions to the 15-month filing requirement shown below applies, check the appropriate box and proceed to question 8. None applied
  3. If the organization does not meet any of the exceptions on line 2, are you filing Form 1023 within 27 months from the end of the month in which the organization was created or formed? Yes
    We were "pushing" this from "inception" but aren't from incorporation, and the IRS has confirmed it's "incorporation" that they mean.
  4. Skipped
  5. Skipped
  6. Skipped
  7. Skipped
  8. Is the organization a private foundation? No
    Unless an organization needs one of the exceptions below, it is a private foundation. In general, an organization is not a private foundation if it is: (5)An organization that normally receives not more than one-third of its support from gross investment income and more than one-third of its support from contributions, membership fees, and gross receipts related to its exempt functions (subject to certain exceptions) as provided in section 509(a)(2);
  9. If you answer "Yes" to the question on line 8, does the organization claim to be a private operating foundation? <Left Blank>
  10. If you answer "No" to the question o line 8, indicate the public charity classification the organization is requesting by checking the box below that most appropriately applies:
    • a. As a church (fill out schedule A)
    • b. As a School (fill out schedule B)
    • c. As a hospital (fill out Schedule C)
    • d. As a governmental unit described in section 170(c)(1)
    • e. As being operated solely for the benefit of, or in connection with one or more of the organizations described in a through d,g,h, or i. (fill out schedule D)
    • f. As being organized and operated exclusively for testing for public safety.
    • g. As being operated for the benefit of a college or university that is owned or operated by a governmental unit.
    • h. As receiving a substantial part of its support in the form of contributions from publicly supported organizations, from a governmental unit, or from the general public.
    • i. As normally receiving not more than one-third of its support from gross investment income and more than one-third of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions. (subject to certain exceptions).
    • h. The organization is publicly supported organization but is not sure whether it meets the public support test of block h or block i. The organization would like the IRS to decide the proper classification.
  11. If you checked box h, i, or j on line 10, has the organization completed a tax year of at least 8 months? <Left Blank>
    You must request an advance ruling by completing and signing two Forms 872-C and attaching them to the application. This means filling in questions 12-15 as well
  12. If the organization received any unusual grants during any of the tax years shown in Part IV-A, attach a list of reach showing the name of the contributor; the date and the amount of the grant; and a brief description of the nature of the grant. N/A
  13. Skipped
  14. Skipped
  15. Indicate if your organization is one of the following. If so, complete the required schedule. (Submit only those schedules that apply to your organization. Do not submit blank schedules).
    A church  No 
    A school  No 
    A hospital or medical research organization  No 
    A section 509(a)(3) supporting organization  No 
    A private operating foundation  No 
    A home for the aged or handicapped  No 
    A child care organization  No 
    Provide or administer any scholarship benefits, student aid, etc.  No 
    Taken over, or will it take over, the facilities of a "for profit" institution?  No 

Part IV - Financial Data


The following table contains estimates based on the following presumptions. No grants or contributions worth much. We might end up with software and hardware donated to the Guild, but none are planned for. A current base of 36,000 members with a growth of 65/day. 65/day is close to our average growth for the last 1.5 years, so it makes a pretty good bottom line estimate. We expect a conversion ratio of about 15% for the 36,000 current members, and a figure of 15% for the new joiners for any level other than Basic.
# Items 1996 1997 1998 Totals 
1.  Gifts, grants, and contributions received  $ 2,300  $ 6,910  $12,000  $21,210 
2.  Membership fees received  0.00  $264,934  $814,857 $1,079,791
3.  Gross investment income  0.00  0.00  312.00  $312.00 
4.  Net income from organization's unrelated business activities not included on line 3  0.00  0.00  0.00  0.00 
5.  Tax revenues levied for and either paid to or spent on behalf of the organization  0.00  0.00  0.00  0.00 
6.  Value of services or facilities furnished by a governmental unit to the organization without charge  0.00  0.00  0.00  0.00 
7.  Other income (not including gain or loss from sale of capital assets)  0.00  0.00  0.00  0.00 
8.  Total (add lines 1 through 7)  2,300  271,844  827,169  1,101,313 
9.  Gross receipts from admissions, sales of merchandise or services, or furnishing of facilities in any activity that is not an unrelated business within the meaning of section 513 0.00  $43,000  $53,750  $96,750 
10.  Total (add line 8 and 9)  2,300  314,844  880,919  1,198,063 
11.  Gain or loss of sale of capital assets (attach schedule)  0.00  0.00  0.00  0.00 
12.  Unusual grants  0.00  0.00  0.00  0.00 
13.  Total revenue (add lines 10 thru 12)  2,300  314,844  880,919  1,198,063
14.  Fundraising expenses  0.00  69,463  176,617  $246,080 
15.  Contributions, gifts, grants, and similar amounts paid  0.00  0.00  0.00  0.00 
16.  Disbursements to or for benefit of members  0.00  2,315  4,213  6,528 
17.  Compensation of officers, directors, and trustees (attach schedule  0.00  162,000  228,000  390,000
18.  Other salaries and wages  0.00  0  288,000  288,000 
19.  Interest  0.00  0.00  0.00  0.00 
20.  Occupancy (rent, utilities, etc).  $2,300  $ 7,760  $13,800  $23,860 
21.  Depreciation and depletion  0.00  0.00  0.00  0.00 
22.  Other (attach schedule 0.00 $ 71,500  $141,800  $213,300 
23.  Total expenses (add lines 14 through 22)  $2,300  $313,038  $852,430  $1,167,768 
24.  Excess of revenue over expenses (line 13 minus 23)  0.00  1,806  28,489  30,295 



1996 Gifts/Grants
Copyright/Trademark Legal fees                  

Machine Resources       
(most of these were donated by members, and aren't a usual part of their
company's operations, so "market price" for the services was undetermined.)

  Iserver.Com --> (3/x-12/31)           2300
  Tara-Lu.Com --> maillists, hypermail          
  Idyllmtn.Com --> maillists (7/x-12/31)  --> maillist (7/x-12/31) --> maillist (7/x-12/31) --> website/maillists --> maillists (7/x-12/31) --> archive space --> maillist (7/x-8/x)    
  Itdcomm.Com-->maillist (1/1-4/10)     
  Rpmdp.Com --> maillist (1/1-3/x) --> maillists (1/1-8/x)      

Total 1996 Gift/Grants                                       2,300
1997 Gifts/Grants -->                    660 --> maillists,hypermail --> maillists --> maillist --> maillist --> maillists --> archive space       
Entropy software -     
Oracle Database engine                    3000
Netscape Commerce Server                  3000
WWW6 Booth Space                           250

Total 1997 Gift/Grant figure                                 6,910
1998 Gift/Grants
No idea                                                     12,000

Investment Income

While we will probably eventually have funds that can be invested to earn an income, I wasn't expecting to early on. I've allocated 5% income on the net income from 1997 and that is all here. 


Membership is going to be our primary source of funding for the majority of our oprations. Exactly what we'll get here is very hard to say. We've not done even a semi-quantitative analysis of what the conversion rate might be - so any percentages are purely guesswork. I've attempt to stay conservative in our numbers here.
Individual Membership Program
Types of membership, Basic ($0), Value($20), Plus($35). We have 38,000 members and we're growing at the rate of 65/day, 365 days per year. [avg growth for last 1.5 years is 67]. We've used a 85% going into Basic, 10% going into Value, and 5% going into Plus for the conversion of old members and new members in 1997. We've increased those figures to 80 new members per day in 1998 with 15% going Value and 10% going Plus. (as well as keeping the prior year's members at the level they were at).
         1997            1998
New Members:
Basic:  $     0         $      0
Value:  $47,450         $ 87,600
Plus:   $41,519         $102,200 
---------------         --------
Total:  $88,969         $189,800

Conversion of Old Members:
Basic:  $     0         
Value:  $76,000         $123,450
Plus:   $66,500         $108,019
---------------         --------
Total: $142,500         $421,269
Volunteers ("free memberships"):
Plus   $  2,315         $  4,213
---------------         --------
Total: $  2,315         $  4,213

Total Individual Membership dues: $233,784/425,482
Corporate Membership Program
Types of membership, Business ($100), Corporate ($250-5000), and Patron ($750-5500). We've no experience with this type of program. Any estimates are guesswork. We've used 200 members by the end of 1997. We've given this a split of 64.5% going Business, 35% going Corporate, and 0.5% going Patron. We've used the 0-50 employee model for the corporations because *most* of our members come from fairly small companies. We've estimated the growth to 2500 members by the end of 1998 using the same split in contributions.
               1997         1998
New Members
Business:  $ 12,900     $161,250
Corporate: $ 17,550     $218,750
Patron:    $    750     $  9,375
-------------------     --------
Total:     $ 31,150     $389,375

Total Membership dues: $264,934/814,857

Volunteer discounts

In any organization there are exceptions. The Governing Board has talked about but hasn't come up with any concrete plan for dealing with discounts to the membership fees. These figures are here as ball-parks and don't necessarily reflect "real" end figures.

If we allow for up to 1% of the membership to bypass the membership fee because they provide time and effort and talent instead of dollars, to participate at the Plus level, we "loose" revenue of $2315 and $4213 respectively. 

Merchandise and Classes

We are currently figuring on $12/TShirt and $18/SweatShirt in Costs and charging $18/TShirt and $25/SweatShirt. We've estimated selling 1000 T's and 1000 Sweats in 1997. We've estimated selling 1250 each in 1998.

Ideally this section would include class revenues, but we've no idea of the structure of that, let alone dollar figures attached to it. At this point in time. 

Other Expenses

We expecting a cost of $7 per member for support of the membership database and generation of a membership packet. We've estimated 9,459 in 1997 and 25,231 in 1998.

We'll have publication costs for business cards ($250), brochures ($2000), and free giveaways ($1000) for the convention(s). 

The income statement accounts for the value of the services donated to the Guild by That wasn't money based, but actual services. We're presuming that had the money been donated it would go back out here, so we've shown it as an expense. We should pay Iserver for the space. We're also planning on putting our own Internet server together, with dedicated access to the Internet, etal. Those figures are 5760 for 1997, and 12,000 for 1998. We'll also probably want to rent projectors or other things for doing presentation type activities at other conventions in 1997/1998 (2000/0). Eventually we will get at least an office in some shared office space. This will provide a phone number to at least reach a secretary and other office type activity amenities that the central staff may required. We've allocated $1800 for the 1998 year for this type of office.
             1996         1997           1998
Server       2300         5760           12,000
Projector                 2000                0
Office                                    1,800
          -------       ------          -------
Totals       2300         7760           13,800
If we buy our own machine - we're planning on only one at this time, and we will probably expense it instead of depreciating it. (as long as it is within the IRS limitations on that). We've currently estimated $10,000 for a machine.
Other Expenses
Travel & Accommodations for conventions (4000/16000).
Booth Trappings (5000/10000).
Marketing Materials (10000/15,000).
Telephone costs (1500/2500).
Tshirts & Sweatshirt costs (30000/37500) Liability Insurance (750/750) Health Benefits (0/19500) Processing/Banking Fees (12,000/30,000) [this allows for 3% of all publicly paid funds to be handed over for check/credit card/fund transfer fees] State/Federal fees (1000/300) Legal Fees (5000/7500) Accounting fees (1500/2000) Office Supplies (750/750) 


We start with the dedicated staff to manage all the people doing things. That means the Executive Council. When we've got the funds, then we'll expand to the other "first pass critical" managers - the website and mail lists. Followed by a marketing staff.
                1997                            1998            

                        # People Sal    Cost            # People Sal    Cost

Corporate Officers                                                      

President               1       40000   40000           1       60000   60000
Vice President          1       35000   35000           1       50000   50000
Secretary               1       30000   30000           1       40000   40000
Treasurer               1       30000   30000           1       40000   40000

Totals                          135000                          190000
Witholding/FICA/benefits        155250                          218500


Marketing Manager       0       10000   0               1       10000   10000
Member Services Mgr     0       10000   0               1       10000   10000
Corporate Member Lia.   0       10000   0               1       10000   10000
Site Management Mgr     0               0               0
Mail List Manager       0       20000   0               1       20000   20000
List Guide Manager      0       20000   0               1       20000   20000
Webmaster               0       30000   0               1       30000   30000
System Administrator    0       30000   0               1       30000   30000
Database Admin          0               0               0
Archives Manager        0               0               0
Mentor Manager          0       10000   0               1       10000   10000
OnLine Class Coord.     0       20000   0               1       20000   20000
List Owner              0       500     0               20      1000    20000
List Guide              0       500     0               40      1000    40000
FAQ Owner               0       500     0               20      1000    20000

Total Base Salaries                     0                               240000
Withholding/FICA/benefits                0                               276000

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