Subject: RE: Important: Transition Structure
From: "Chris Lu" <[email-masked]>
To: [email-masked], [email-masked]
Date: Thu, 23 Oct 2008 11:15:29 -0500

Brad - This is helpful.  As I understand it, Obama Transition Project is an unincorporated association, and I'm not sure what if any legal papers have been filed.  I don't remember why we did that, but the question for Perkins Coie is, assuming that OTP lives on after Nov. 4 as a 501(c)(4), whether we should go ahead and file papers after Election Day.
 
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Chris Lu
[email-masked]
312-505-4864 (cell)

________________________________

From: [email-masked] [mailto:[email-masked]]
Sent: Wed 10/22/2008 6:20 PM
To: [email-masked]
Cc: Chris Lu
Subject: Important: Transition Structure

	

John, here is the response I received from Perkins Coie on establishing a c-3 rather than a c-4.  Let me know if you would like to pursue this further.  Thank you.

-----Original Message-----
From: Reese, Ezra (Perkins Coie) <[email-masked]>
To: [email-masked]
Cc: Neville, Christine (Perkins Coie) <[email-masked]>
Sent: Wed, 22 Oct 2008 7:06 pm
Subject: RE: Transition Structure

Brad,
 
I'm happy to talk about this further, but here are the issues I mentioned in our conversation this afternoon.
 
1) A 501(c)(3) takes some time to establish.  In particular, an application must be filed with the IRS, and donations are not assured of being tax-deductible until the IRS sends a determination letter.  The process takes 3-6 months and as long as 9 months.  We wished to avoid a period of uncertainty for donors.
 
2) A 501(c)(3) may have no political activities; that may, practically speaking, bar any interaction of a 501(c)(3) with any campaign organization, including the DNC and Obama for America.  (As we discussed, post-November 4th OFA will transition into a re-election committee, and its activities are still political.)
 
3) The rewards for establishing the organization as a 501(c)(3) seemed meager, since contributions have been limited by policy to $5,000 (and are limited by statute in any case).  Thus, no individual donor stands to gain much from being able to deduct his or her contribution.

Ezra W. Reese | Perkins Coie LLP
POLITICAL LAW GROUP
FEDERAL TAX GROUP
607 14th Street, Suite 800
Washington, DC 20005
PHONE: 202/434-1616
FAX: 202/654.9109
E-MAIL: [email-masked] 
IMPORTANT TAX INFORMATION: This communication is not intended or written by Perkins Coie LLP to be used, and cannot be used by the taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

________________________________

From: [email-masked] [mailto:[email-masked] <mailto:[email-masked]?> ] 
Sent: Tuesday, October 21, 2008 6:55 PM
To: Neville, Christine (Perkins Coie)
Cc: [email-masked]
Subject: Transition Structure

Christine, 

Good evening.  I work with Katy Kale and work for/with John at the Center for American Progress.  Katy and I met with John this afternoon and he wanted us to ask you and Bob if the transition office could organize as a 501 c-3 rather than a 501 c-4.  Are there limitations to our ability to register as a charitable organization under the 501 c-3 structure?  Obviously there are advantages to c-3.  Let us know your thoughts.  Thank you.

Brad Kiley
202-236-3307 

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