Sunday, September 29, 2019

What kind of "Non-Profit" is the White Clay Bicycle Club?

The White Clay Bicycle Club does not appear
in any search of the IRS Non-Profits database.
What kind of "non-profit" is the White Clay Bicycle Club? Virtually everyone you ask -- including past Board members -- believe it is a 501(c)3. However, the organization does not appear on any search of the IRS non-profits database, using the simple keywords "White Clay". Six other orgs do appear, however (see image on right).

Assuming WCBC is missing in the results somehow, and it is indeed a 501(c)3 or (c)7 or other 501-type, is it appropriate for them to donate relatively large sums of member dues and event fee monies to another 501(c)3 that does not follow the recommended rules of transparency? The recipient org, Bike Delaware is a confirmed 501(c)3, but has:

  • No annual report
  • No periodic newsletter of any kind
  • No annual meeting with minutes and election results
  • No search feature on their website to search out these items or topics of interest
  • No posted meeting minutes
  • No lobbying records or reports at the county and regional level, much (if not most) of which centers around land use

WCBC's main source of revenue is membership dues and event fees; probably half or more is sourced from non-members participating in their recreational cycling events that are open to all. Is it legal and appropriate that non-members (and members alike) are helping fund activities that they may not approve of, in this case lobbying for developer and builder interests at the expense of parks, green space, and retrofitting the built environment for multi-modal transportation?

John Haupt, President of WCBC, gave these terse replies when asked about his org's Form-990 and/or a financial disclosure:

Q: Is WCBC a 501(c)3, or (c)7, as described here?

  • ... do not include the WCBC or any members of the WCBC Executive Committee on your email messages or correspondence.
  • The White Clay Bicycle Club is not a 501(c)(3) as you state in a prior message.
  • The White Clay Bicycle Club is not a "political organization" as you possibly elude to in a prior message.

Summary: According to the IRS website at this time, WCBC is not a non-profit org. Even if this is an oversight on their part, it would still appear that there is a 509(a)3 "Type 3" relationship between WCBC and Bike Delaware, meaning that regardless of revenue totals each year, they should still file a Form-990 (or other documentation) and be transparent about it. This can be found in the IRS' 4221-PC Compliance Guide (pdf).

Given this is an inquiry, of which we can only hope there is nothing fraudulent in the end, we will update this article as we learn more. Feel free to comment below.

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