The IRS and NHRA, you gotta see this.

[Alan Roehrich]

Originally Posted by A100

Have you ever wondered what racing would look like if the LGC gang had been able to cash out with the sale of NHRA Pro to HD? The gang figured out how to sell something they didn't own.

May their greed cause their demise.

It will be attempted again if the IRS doesn't make something happen first.

See, there is a perfect example of how NHRA is NOT being operated as a 501(c) non profit organization.

NHRA was a runaway train, hurtling toward the end of the spur, and dragging sportsman racing with it. OUR part of NHRA was on a disastrous road to the end game.

Of course, everyone could have stood by and watched it all happen, and then when the end came, complain because it happened.

[Greg Hill]

There's an old saying that "power corrupts and absolute power corrupts absolutely". In my opinion the lack of accountability that management and the board have had for years plays in to that old saying. Management and the board are the same people and are not accountable to anyone. They do what they please, they pay themselves what they please with no concern with how it affects all of us. Most 501-C6 tax exempt organizations are accountable to their members. In fact according to IRS rules they must be membership based organizations with a high degree of membership involvement.

Look at the NFL, the members are the owners of the teams, the owners pick a board and hire the CEO, who is accountable to the team owners. SEMA is another good example of a 501-C6 organization. The members vote on board members who in turn hire a person to run the organization. The management is accountable to the board and the board is accountable to the members. The lack of accountability is what's led to the shape NHRA finds themselves in right now.

[cicero819]

Non Profit Organization: Surprisingly, there is no legal defination of a non Profit organization. In general, a non profit organization is one that is organized to achieve a purpose other than generating a profit. Despite this, a N.P.O is not precluded from making a profit or engaging in profit-making activities. It is prohibited from passing along any profits to those individual who control it, like founders, directors, officers, employees and members. Nothing, however, prevents a N.P.O from paying reasonable salaries to officers, employees, and others who perform a service for it. All this information is available on the IRS tax code section 501(c)(3). Certain NPO that are exempt from Federal Corporate Income taxes must show to keep their exemption documentation that their not engaging in any political, legislative or entertaining activities. In California it's Illegal for any employees to derive a higher rate of pay than a comparable for profit organization of the same financial volume. You must remember the tricky word in this which is (reasonable). Gross revenu= reasonable salaries. Compton might get away with it but not the rest of the Directors. These guys have alot of to explain, without even considering that most of it's voting member were never asked to have a say in it's operation. I've been after NHRA to show me were and when we gaved them our voting rights to them to do whatever they wanted to do with them, and they never did. I do not want the IRS to put their nose under our tent because when they do move in for the audit, it could damage NHRA to the point of total destruction. CR

[Bruce Witherspoon]

Originally Posted by cicero819

Non Profit Organization: Surprisingly, there is no legal defination of a non Profit organization. In general, a non profit organization is one that is organized to achieve a purpose other than generating a profit. Despite this, a N.P.O is not precluded from making a profit or engaging in profit-making activities. It is prohibited from passing along any profits to those individual who control it, like founders, directors, officers, employees and members. Nothing, however, prevents a N.P.O from paying reasonable salaries to officers, employees, and others who perform a service for it. All this information is available on the IRS tax code section 501(c)(3). Certain NPO that are exempt from Federal Corporate Income taxes must show to keep their exemption documentation that their not engaging in any political, legislative or entertaining activities. In California it's Illegal for any employees to derive a higher rate of pay than a comparable for profit organization of the same financial volume. You must remember the tricky word in this which is (reasonable). Gross revenu= reasonable salaries. Compton might get away with it but not the rest of the Directors. These guys have alot of to explain, without even considering that most of it's voting member were never asked to have a say in it's operation. I've been after NHRA to show me were and when we gaved them our voting rights to them to do whatever they wanted to do with them, and they never did. I do not want the IRS to put their nose under our tent because when they do move in for the audit, it could damage NHRA to the point of total destruction. CR

CR,

With all due respect, you're kidding right? NHRA has been on the path of self destruction all on it's own. In fairness most sporting venues are pricing themselves out of business but this is suppose to be something other than a business, or at least that's what a vast majority of the people on here believe.
Forget about the ever rising fees, the insurance, the puinitive damages for riding your unregistered scooter. Need I say more?

[FINESPLINE]

Sportsman racing just might have been given a new chance at survival. After this all falls out it might be time for membership to take control of their future. It will be interesting to see where the money trail leads.
Just a thought--funny how the V10 drag pak program got put back at about the same time the IRS problems went public NAHHHHHHH !!!!!

[Bob Pagano]

Besides nhra is not a (c) 3

[novassdude]

only the museum is 501(c)(3)

[X-TECH MAN]

After all of this IRS stuff goes down the only place you guys with the 1972 and older cars might be able to race are the Nostalgia races, local circuit races, and/or bracket events. The rest who are stuck with the $100,000 plus new under rated DP's, Mustangs, and FI cars might as well make flower pots out of them, bracket cars, and or street rides.....LOL.

[MikeFicacci]

Quite possibly nothing is going to change after NHRA pays some sort of fine but if somehow NHRA loses its sanction, Division 1 will be fine operating under some sort of Dave Ley controlled Divisional Series. Division 1 has 128 cars at just about every National Events, Divisional, and Open series race.

Plus I like the idea of one guy who is committed to the sport running the show and not someone who paints NHRA cars on the side.

[Ed Wright]

I agree. I don't think much change will trickle down to us. They will just pay any fines (if it comes to that) and get back to business. It's just business.
I don't think it's any of my business.