As I understand it, "operating as a nonprofit" is part of what you need to show to qualify for your federal application, and this I think is the magic phrase they are trying to conform to.
But you know about
AP and the desire to invoke magic phrases instead of actually conforming to requirements...
I think they fail on the "operating as a nonprofit" claim historically. The IRS guidelines for filing,
https://www.irs.gov/pub/irs-pdf/p4220.pdf, state that among other things,
the 501(c)3 organization must "permanently dedicate its assets to exempt purposes".
I have seen no clear indication that they had in 2015 "permanently dedicated" their soundstage or other resources to only exempt purposes. Even up to today I haven't seen it. They have spoken of hosting other productions but never that I have seen "permanently" committed to only hosting exempt purposes for that stage.
I think its actually kinda hard to do that without adopting nonprofit-oriented bylaws making the dedication, and a board of directors empowered to be the trustee of said assets.
I could be wrong, there could be nonprofit formulations that don't require either of these things, but this is how I understand it, and I think it would be hard for them to claim they were "operating as a nonprofit" up to now without
somehow concretely, rather than just headcanon/notionally, conforming to the actual IRS requirements as stated outside the heads of the aspirants.
Which sounds so familiar...
Soooo... if they shed their assets, then they can get their retconning nonprofit status more easily going forward.
I just don't think the current producers really want to BE a nonprofit staff in reality over time. Sure, only they know, but look at their approach to building a nonprofit up to now. If they succeed, I think the current producers will, if still around, bow out of the nonprofit itself, leaving it to others, and form their own new fanfilm production company, and be the customer of what they created. They already opened the door to as much in their recent FAQ.
And THAT is what I think they mean by no one except insiders really knows what is going on. Not that they planned it all, but that they are planning their cat landing as they fall, and claim that all the other people involved in the nonprofit and the investors group, and all the donors, are getting something viable - just not in any way a Trek film, AND LIKELY TO HAVE MUCH HIGHER RISKS THAN CLAIMED.
Which sounds so familiar...
For it to work they have to somehow shield the investment group and nonprofit from all financial direct and indirect consequences of a settlement, and they would have to convince people to join as professional nonprofit staff of whatever generic studio survives. They would have to overcome the problems all arts facility-provider nonprofits have with not having enough donations, which means being able to make their budget from the green screen at least for a while (which others have indicated is iffy) and only from exempt uses, not commercial ones.
------------------------
Longer IRS excerpt for reference of anyone who wants to see it:
Who is Eligible for 501(c)(3) Status? There are three key components for an organization to be exempt from federal income tax under section 501(c)(3) of the IRC. A not-for-profit (i.e., nonprofit) organization must be organized and operated exclusively for one or more exempt purposes.
Organized – A 501(c)(3) organization must be organized as a corporation, trust, or unincorporated association. An organization’s organizing documents (articles of incorporation, trust documents, articles of association) must:
- limit its purposes to those described in section 501(c)(3) of the IRC;
- not expressly permit activities that do not further its exempt purpose(s), i.e., unrelated activities; and,
- permanently dedicate its assets to exempt purposes.
Operated – Because a substantial portion of an organization’s activities must further its exempt purpose(s), certain other activities are prohibited or restricted including, but not limited to, the following activities. A 501(c)(3) organization:
- must absolutely refrain from participating in the political campaigns of candidates for local, state, or federal office;
- must restrict its lobbying activities to an insubstantial part of its total activities;
- must ensure that its earnings do not inure to the benefit of any private shareholder or individual;
- must not operate for the benefit of private interests such as those of its founder, the founder’s family, its shareholders or persons controlled by such interests;
- must not operate for the primary purpose of conducting a trade or business that is not related to its exempt purpose, such as a school’s operation of a factory; and,
- must not have purposes or activities that are illegal or violate fundamental public policy.
Exempt Purpose – To be tax exempt, an organization must have one or more exempt purposes, stated in its organizing document. Section 501(c)(3) of the IRC lists the following exempt purposes: charitable, educational, religious, scientific, literary, fostering national or international sports competition, preventing cruelty to children or animals, and testing for public safety.