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Thanks 33girl. I wasn't aware of the distinction it had for those groups. I'm guessing that old laws prohibited incorporation by minorities?
Achtung: It makes them a business, essentially. We have incorporated House Associations and unincorporated House Associations. An unicorporated House Association isn't much different than a group of women helping the chapter. Their taxes, income, etc. are combined with the chapter's and included in the chapter's tax forms. An incorporated House Association is an entity of itself, with it's own tax ID number, finances, etc. One of the biggest differences is... if you are a signer on a mortgage as a member of an Unincorporated House Association and there is a default on the mortgage, they can go after your personal assets. If you are an officer in an Incorporated HA, your personal assets are protected. Most (if not all) of our organizations are Incorporated and our chapters are like divisions of that Incorporation. You have to be Incorporated to achieve non-profit/tax exempt status too.
So, what it means? If the GLO gets into financial trouble, the International President doesn't have to sell her house to bail them out. It's a business thing.
Dee
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Hybrid Mode
