Reply To: Ownership of museum

[Richard Lange]

As Dave mentioned, as a 501(c) (3) organization such as the Pierce-Arrow Foundation enjoys exemption from federal income tax and is eligible to receive tax-deductible contributions. The most common types of 501(c) (3) organizations are religious, charitable, and educational in nature – the Pierce-Arrow Foundation being in the latter category. However, these benefits granted by the Internal Revenue Service come with the requirement of strong adherence to the exempt purposes defined in a constitution – and with the addition of strict recordkeeping obligations.

Some car organizations have tried to meet the 501(c) (3) requirements with disastrous results. After years of operation by at least one such car organization, the IRS imposed past due federal income taxes and penalties.

The Pierce-Arrow Foundation, which operates the Pierce-Arrow Museum, is a separate non-for-profit organization from the Pierce-Arrow Society. However, both benefit from a complimentary, and symbiotic, relationship. Each benefits from the existence of the other.

Each organization has its own board of directors that are selected from the members who provide its direct and ongoing support. The management of each organization is focused on the particular goals and objectives that make each entity unique.

Particularly important to the respective longevities is that since inception each organization has been financially responsible and completely independent. Neither organization owes its existence to the other. Funds and resources in each organization are allocated based on the focus of its board of directors and officers.

Many Pierce-Arrow enthusiasts are active in both organizations and I often see the positive results that flow from this close cooperation. A project that starts in one organization becomes of interest to members in the other organization.

Indeed the founders got it right the first time and we should stay the course!

Rich Lange, President

Pierce-Arrow Society