By Fed law, a 501c organization is ruled by a board of directors. The members of the board may be compensated for their work for the organization, but they cannot participate in any "profit sharing", i.e. their compensation is not related to the financial success of the organization. The 501c organizations fall under the general category of "corporation". The two major differences between a 501c and C-corps, sub-S corps or LLCs are (1) no profit and (2) in the original charter the intended purpose of the corp has to be defined which limits the activity of the organization to achieve the defined purpose.
The way that electrical co-ops etc. get by with the distribution of revenues is that their charter is to provide the cheapest form of electrical service to the members they service and to distribute excess operating funds to the members on a per annum basis. The members pay in a service fee and the organization operates on that revenue (plus any it earns from brokering or producing excess product). At the end of the year, the excess funds are redistributed to get back to a no profit status. Since NHRA does not have any statement in its charter to distrubute excess funds back to its membership, such ideas or claims are not founded. Its charter states that any excess funds are to be reinvested in the promotion of drag racing and hot rodding activities. That is exactly what they have stated they will do with the funds of this transaction. You may have opinions about their decisions to do that, but all the conspiracy theories are but evidence that our culture has educated the general public about human behavior from movies and television dramas. This is not a soap opera, guys. Simply ask the questions, follow the choices the board of directors makes and make your opinions known to them.
One area that was not clarified,but that should be considered is that if NHRA is to be the sanctioning organization and will still run the races that NHRA Pro Racing will produce, surely they will be compensated for this service.
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