Re: Negative Balance in Bay Area Creative Account

[Jay Blas Jacob Cabrera]

Could someone help me get in touch with Jaz or whoever is overseeing the Berkley Poetry Slam. 

I would like to get confirmation on what is going on with the account.  I think I herd a few things, but may have missed any notification in writing that the account should be closed.

Also we have personal credit card payments to Jazz which is a problem.

Hopefully we can get this all sorted out. 

Also Patrick, I still need the bank statements for the amounts that were transferred into BAC account for the taxes and auditing of the funds that still were under our Tax ID. Thanks. :)

Also am available to schedule a call as needed to get this all sorted out.

Jay

Jay Blas Jacob Cabrera

831-332-2486

PO Box 20175

Stanford CA 94309

http://WCTC.world 

On Aug 19, 2019, at 11:17 PM, Jay Blas Jacob Cabrera <j...@jayslife.net> wrote:

Jazz,

From a transaction on July 25th 2019 there was a overdraft and the account is now in negative amount.

That transaction is as follows:

	07/26/19	OVERDRAFT FEE FOR A TRANSACTION POSTED ON 07/25 $925.35 CHASE CREDIT CRD EPAY 190724 4221724702 AURIELLE J SUFI		$35.00	-$44.99
	07/25/19	CHASE CREDIT CRD EPAY 190724 4221724702 AURIELLE J SUFI		$925.35	-$9.99

This implies a personal credit card payment which is 100% NOT a legitimate use of non-profit money and would be considered a personal payment and would require a 1099 issued at the end of the year. If that is what you would like to do that is fine. With a 1099 it could result in personal tax liability.

Alternatively you can send us receipts or your credit card statement and simply highlight the actual expenses that you bought using your credit card that would then become our transactions that are audit-able, and then the $925 would become a reimbursement instead of a payment. All of the transactions would need to add up to $925, anything less than $325 would result in a 1099.

Also we can initiate the closing of the account if it is no longer needed. Just send a reply in writing so that we have it documented and I will take the necessary steps.

Feel free to call me as well to work out any details.s

Thanks,

Jay Blas Jacob Cabrera

831-332-2486

PO Box 20175

Stanford A 94309

http://WCTC.world

[Jay Blas Jacob Cabrera]

Patricks,

Yes I do remember getting an email, but then the account went negative and there are these charges which are NOT non-profit expenses. Specifically her personal credit card payment. 

So I would either need a receipt or issue her a 1099.  

In that context I need an updated W-9 or her current address in New York.  (Please do NOT send on the email groups, private communications for personal identifiable information).

I will move forward with just closing the account, I have been out of town for the last 3 weeks, so I just need to head to the bank and sit down with them, transfer around some money to pay off the negative, and it should be fine. I think it is only negative by like $75 or so. For now I will cover it and maybe the Berkley Poetry Slam will be willing to cover the difference.

As far as them not wanting to do fiscal sponsorship that is fine. But we did do 0% admin fees for them for many years, so it would be at least nice to not end up in the red. 

——

No hurry on the bank statements. We did 2 transfers one for BAC for about $1,500 or something, and the other for Digital Storytellers of about $15,000 or something. I don’t remember the exact $, but the goal would simply be getting bank statements that cover those transfers. Otherwise it would be a 1099 on our side.  If not a bank statement, at least a general accounting document of what the almost $20,000 was spent on. You could even create a one-time special budget just for that money. But the most offical is just the actual bank statements which show exactly what it was spent on. 

Again no hurry, it is just for our records and takes and we have at least 3 months left for last year, and since these expenses also cross into 2019, some of it won’t be needed until a year and 3 months from now. 

Jay

Jay Blas Jacob Cabrera

831-332-2486

PO Box 20175

Stanford CA 94309

http://WCTC.world 

On Aug 24, 2019, at 11:15 PM, patrick ohslund <ohslu...@gmail.com> wrote:

Hello Jay,

Jaz has moved to New York for graduate school and no longer runs the Berkeley poetry slam. If you have her email that is the best way to get ahold of her. I will reach out via phone though I don’t know if she will respond, unfortunately she is not the best at communicating especially if she has made a mistake. I do know that she had planned to close the account as she was no longer running the slam and the people who took it over didn’t want to use fiscal sponsorship. She told me that she sent you an email to inform you of this. 

As for the bank statements from BAC can we set up time for a phone call? I would like to be sure I know the exact dates and amounts you are looking for. I’m sure it will be easy I just want to make sure we get them to you for taxes. I probably won’t be on my email tonight again but will be able to respond to an email  tomorrow.

Warmly 

Patrick 

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[director bayareacreative.org]

Jay,

I will ask the new Berkeley slam committee if they are willing to cover the 75$ negative in the account.

I do not have Jaz's address in New York nor do I have a way of getting it other than calling/texting her, which I doubt she will respond to. I will try to get that info for you though.

I imagine that her personal credit card payments were done to reimburse her self as the slam had fallen into hard times and she was paying a few hundred dollars from her credit card at many shows to cover expenses, as well as to send the team to out of town competions. So technically these funds were used for non profit expenses, though she should have just taken the money out of the account to reimburse her self. 

I think doing a 1099 for her makes sense.

As for clarifying the final info for BAC can we still set up a phone call to clarify this?  This fall is about to get super busy for me and I would rather handle it sooner rather than later.  I have time on Tues and Thursday for a call. Do either of those days work for you?

Warmly,

Patrick

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Patrick Ohslund, MA

Director- Bayareacreative

dire...@bayareacreative.org

(949) 285-9086 (cell)

www.bayareacreative.org

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We work to create a world where cultural sensitivity, social justice and emotional balance promote well rounded healthy people who can lead the way to a society that is thriving with diversity, supported by community and fulfilled in the creative acts of individuals.

[Jay's LIFE FQN CommUnity]

Patrick,

I calculated the exact amount for BAC account for Berkley Poetry Slam, which is -($59.84).

Tues or Thursday should work fine. Lets schedule for then. It should only take 10-20min

Jay

<Mail Attachment.jpeg>

www.bayareacreative.org

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We work to create a world where cultural sensitivity, social justice and emotional balance promote well rounded healthy people who can lead the way to a society that is thriving with diversity, supported by community and fulfilled in the creative acts of individuals.

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[director bayareacreative.org]

Jay,

$59.84 should be no problem, how would you like the money sent over? As for the call tomorrow I am working from home and am available any time other than 2 45 to 3 45. 

Is there a time that you would prefer?

Warmly,

Patrick

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Patrick Ohslund, MA

Director- Bayareacreative

dire...@bayareacreative.org

(949) 285-9086 (cell)

[Jay's LIFE FQN CommUnity]

P

We can accept any form of payment method.

As far as time, lets check in around 11, or so. I am fine before or after for your availability. It shouldn’t take long. I’m available most of the day as well.

J

On Aug 26, 2019, at 6:55 PM, director bayareacreative.org <dire...@bayareacreative.org> wrote:

Jay,

$59.84 should be no problem, how would you like the money sent over? As for the call tomorrow I am working from home and am available any time other than 2 45 to 3 45. 

Is there a time that you would prefer?

Warmly,

Patrick

On August 26, 2019 at 4:00 PM Jay's LIFE FQN CommUnity <fqnja...@gmail.com> wrote:

Patrick,

I calculated the exact amount for BAC account for Berkley Poetry Slam, which is -($59.84).

Tues or Thursday should work fine. Lets schedule for then. It should only take 10-20min

Jay

<Screen Shot 2019-08-26 at 1.59.48 PM.png>

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[director bayareacreative.org]

Should I just transfer the money into your account? If so could you send me the account info? 

Call at 11 00 sounds good to me its on my calendar.

Talk soon,

P

[director bayareacreative.org]

Heya,

Still good for a call around now? I'll keep an eye on my phone.

P

[Jay's LIFE FQN CommUnity]

Hey Everyone,

Me and Patrick had a good Call.

Links to our notes: https://docs.google.com/document/d/1_oLvKi4yh4xg4WG5GQGSY1xseDXHRQ5SFrX86Hu71fY/edit?ts=5d656ec5 

Our next Steps are as follows:

- get documentation from BAC for the $11,942 that was spent in 2019, for Jan 2020 1099s

- close the BAC account for the Berkley Poetry Slam (Jay doing that today)

- transfer $59.84 to cover the negative balance (Patrick doing that today)

- Get documentation from Jaz on what the reimbursement was for adding up to $900, or issue a 1099 for it in Jan 2020

- Do all 1099s in Jan 2020

- Do all taxes for 2018 and 2019 (will go over this in a few months and also mid / end of 2020

- Potentially finalize the remaining WCTC / BAC admin fee issues from before (no hurries on this, is not a priority).

After all of this is done, then there will be very little outstanding in the long term. I am sure I have missed something, like other bank accounts etc…, but for now I think this is the main details.

Jay

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[director bayareacreative.org]

Hello everyone,

I have completed the to do item of: get documentation from BAC for the $11,942 that was spent in 2019

This documentation has been shared with Jay at the google sheet at the following URL:

https://docs.google.com/spreadsheets/d/1FvXmB5ByFfcVuk4q2C6kHGS9_MvAHV84IXNYQL77Nl4/edit#gid=0

It is called 'Budget for transferred funds from 2019 WCTC to BAC'

I have a question though, Jay, does the money in the above googgle sheet go on the BAC 1099 forms and our own 990 form that we submit to the IRS independently from WCTC?  Or does this money go on the WCTC 1099/ 990 forms? If it does not go on the BAC 1099 and 990 forms then how do we account for it on our end? These questions might be too much to answer in an email, if it seems like a lengthy answer I would prefer a phone call if possible.

I also completed the transfer of the $59.84 to WCTC due to the over withdraw of the Berkley slam account in August. 

Please let me know if this documentation in the google sheet will work.

Thank you all for your assistance in this process.

Warmly,

Patrick

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Patrick Ohslund, MA

Director- Bayareacreative

dire...@bayareacreative.org

(949) 285-9086 (cell)

[Jay's LIFE FQN CommUnity]

This looks great.

In our books this is money that came into WCTC and therefore would be income on our 2018 taxes. The money was spent in 2019 and would be part of our 2019 expenditures.

The only other option would be to issue a 1099, but that would make the $11,000 income for BAC which it isn’t. It is income for WCTC.

Hope that makes sense. We are flexible and are willing to work with other options as needed to get everything right. 

One step at a time,

Jay

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[director bayareacreative.org]

I’m glad this will work. I will discuss the 1099 and 990 matter regarding these funds to make sure that BAC is not also liable to report them on our 1099 and 990 forms. 

Regarding another matter we are moving towards paying people as employees and are starting with me in order to figure out what the new tax situation will be. I am teaching for SPARC this year and we were advised that WCTC could send my compensation for the work I’ve done for SPARC to BAC as a donation and then we could use those funds to pay me as an employee. 

Does this sound doable to you? 

Warmly,

Patrick 

[Jay's LIFE FQN CommUnity]

Patrick,

For the 1099s and 990, we will be including those payments in our own finances, since it was WCTC income and expenses. Again the only way around that would be to issue a 1099 to the new BAC corporation as far as I know, which would make it income for BAC which doesn’t seem like we would want that until you get your tax status finalized. 

As far as SPARC paying you, I think it would be similar to how we dealt with SPARC and Mikes payments from non-profit schools. They used to pay him directly with 1099s, and then we sponsored SPARC and we eventually got all of the schools to issue 1099s directly to WCTC instead of Mike. From there the WCTC pays Mike as a contractor and he gets a 1099 after all expenses are paid out, so it is only the funds that go to him now.

So for you and BAC, if you are doing work with SPARC, and SPARC is within WCTC, and instead of SPARC paying you, Patrick, as a contractor, instead SPARC can pay BAC as a contractor, and then BAC can pay you. So instead of the 1099 going to you Patrick, we can simply make a 1099 for BAC. So in that case BAC would have income from WCTC. It could be the same situation where BAC doesn’t want income until it finalized its tax status, but that is up to you. If BAC is paying you directly instead of WCTC, then all expenses can come out, and then BAC would just pay you the difference after expenses. Or you can just subtract the WCTC 1099 from the other payments you would get and then have it even out. However you want to do it. In the end we just need documentation of who we are paying, so if we are paying BAC corporation, then we just need a W-9 from BAC. 

So if BAC corporation doesn't mind getting income we can issue a 1099 to BAC instead of you Patrick. Just let us know.

I do not understand or would be ready to agree to the concept of a off the books “donation”. That does not seem like it would go in alignment with our policies. Any payment to any organization or individual would result in a 1099, regardless if it is considered a donation or not. So as long as it is all documented and audible correctly, however you want to do the finances is all good with me :) I could be missing something, and so if there is an option that I do not understand, I am happy to learn more and to bring it up to Mel and or heather for approval. :)

One step at a time,

Jay

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[Jay's LIFE FQN CommUnity]

Patrick,

I just make sure all our bases are covered. So it is up to you how you want to do the finances. As long as it is legal and checks out, we have no problem with it.

If your start date for your IRS determination is in 2018, then we can make all of the spin-off transfers be 1099s. If your determination letter is in 2019, then based on the date of the determination letter would be when funds can be sent before that would still need to be part of WCTC finances to prevent taxes for BAC.

Overall because the transferred were made in 2018, the 1099s should have been sent in Jan of 2019 for the 2018 taxes. But it is possible to post date and set up the finances in a way that it is in alignment for 2019 taxes. I can’t guarantee every detail, but we should be able to meet most of your needs.

Just let us know the dates, and we can draw up a tax plan to organized this component of 2018 taxes sand 2019 taxes for both organization.

If we decide to transfer ownership of the full $11,000 to BAC corporation, then none of that would be within our own finances as we would simply document payment to BAC corporation as an external income from WCTC.

I’m sure we will figure it all out so it works for everyone. :)

Jay

On Nov 6, 2019, at 7:37 PM, patrick ohslund <ohslu...@gmail.com> wrote:

Hey Jay,

Thanks for this info it is very clear and I understand. I forgot to tell you but a few weeks ago BAC got its official non profit status so we are official.ill send you our IRS letter when I get home. 

As per the 11,00 from WCTC, won’t the IRS want to know how BAC spent those funds and won’t they count those funds as income for BAC? If not then hooray, if so will we need to account for them?

In regards to my payment let’s do the 1099 to BAC and will send you a w9 for BAC so I can be paid as an employee. 

Thanks for your support!

P

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[director bayareacreative.org]

Hello Jay,

This sounds great. Attached is our statement of determination for 501(c)(3) status. It lists the date as Sept of 2019.

It seems to me like a transfer of ownership of the full $11,000 to BAC corporation would be the simplest course of action?  With documentation of payment to BAC corporation as an external income from WCTC.

Does this work with BAC nonprofit status starting in Sept of 2019? 

Thanks for all you do! We would never have gotten to this point without your work!

Warmly,

Patrick 

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Patrick Ohslund, MA

Director- Bayareacreative

dire...@bayareacreative.org

(949) 285-9086 (cell)

[Jay's LIFE FQN CommUnity]

Patrick and BAC,

If your Tax Determination letter is for Sept 17 2019, then any income from before Sept 16th 2019 would legally not be tax deductible and you should be paying taxes on it.  How you deal with your taxes and finances is up to you, but bottom line, my recommendation is that for the $11,000 you would NOT want that to be income with a 1099, and that you would leave all of that money in WCTC taxes.

I am still willing to issue 1099s and make the funds income for BAC, but the transfers were in late 2018, and the money was all spent in the first half of 2019 which is well before the Sep 17th 2019 tax determination date. 

You can get back to me on this, but if we go ahead and make the 1099s and try to rearrange the finances, which is some work, we will need that all in writing so that it is clear on both sides. I’m not sure if the boards would need to get involved, but I would double check as it is a contractor agreement.

Again my recommendation is just to go with what we already have set up. We have everything clear and organized for the $11,000 and exactly how the money was spent and the transfers as part of the WCTC sponsorship and spin-off. We can easily just move forward with including those expenses in our taxes, and issuing the 1099s based on the spreadsheet you sent. 

If we go with the original plan, that these funds are within WCTC taxes, this will be the last year and then BAC will be 100% on its own starting in 2020, which is very exciting. :)

Maybe Mel or someone else from BAC can chime in here and see what they think…

Let me know,

Jay

To view this discussion on the web visit https://groups.google.com/d/msgid/wctc-bac-communications/1245090481.7355.1573151146008%40webmail5.networksolutionsemail.com.
<BAC_501(c)(3)_TaxID_EIN.pdf>

[director bayareacreative.org]

Hey Jay and all,

Ah I see, yes lets go with the original plan then as that seems to be the simplest course of action.

Thanks again!

P

[Jay's LIFE FQN CommUnity]

Ok sounds good,

We have everything we need already, and will be issuing 1099s in January. It sounds like we would also issue 1099 to you individually as well, and then in future years SPARC can send 1099s directly to BAC and you can be paid from BAC.

Jay

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[director bayareacreative.org]

Groovy,

Just for clarification does this plan include me being paid by BAC as an employee for my work with SPARC? 

P

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Patrick Ohslund, MA

Director- Bayareacreative

dire...@bayareacreative.org

(949) 285-9086 (cell)

[Jay's LIFE FQN CommUnity]

Patrick,

My recommendation is NO, expect for all payments after September 17th 2019.

If you want to you can separate out the payments made to you for mid September, October, November, and December, and those can be transferred to you for employee pay within BAC. But for all SPARC payments to you before that, I would recommend sticking with WCTC as the primary finials organization, so that all of the taxes and finances add up and are audit-able. 

Additionally if SPARC starts paying BAC instead of you personally, the checks should be made out to BAC and the funds should be sent to BAC accounts from WCTC SPARC accounts each and every month, and then you as an employee should be paid from BAC accounts, and the applicable taxes taken out of those accounts so everything matches and makes sense. 

What do you think? Does that sound correct? I will cc make as well

Jay

[fqnja...@gmail.com]

Yes SPARC can pay money to anyone and any organization as long as it is in the budget. So SPARC would just send the payment to BAC as a contractor. Definitely fillout and send us the new W-9 for BAC and eventually we can have a short paragraph that explains what BAC does for SPARC, although we all know already it is good to have things in writing eventually. 

Glad we got everything figured out, and pretty impressive that we did so over email and didn’t even need a call. I am available as needed if anything does need a call or if there are any other questions. 

Jay

Sent from myMail for iOS

Thursday, November 7, 2019, 3:19 PM -0800 from director bayareacreative.org <dire...@bayareacreative.org>:

Hey Jay,

Yes this makes perfect sense, the work that I am owed form SPARC mostly takes place after  Sept, after BAC got its 501(c)(3) status. So can we start with my payment at the end of Nov for work done in the seconf half of Sept, Oct and Nov? So can SPARC make a check out to BAC for the amounts I earned in these months? 

Thanks for all this help

P

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Patrick Ohslund, MA

Director- Bayareacreative

dire...@bayareacreative.org

(949) 285-9086 (cell)

[director bayareacreative.org]

Hello Jay,

I have created a google doc that I have shared with you and Mike that explains the relationship between BAC and SPARC. Mike and I co wrote this in order for SPARC to send checks to BAC. Here is a shareable link

https://docs.google.com/document/d/1fic9gUXUD1fFDvilBL9TEOkmORQ0PDZhnRzT8YJyKi0/edit?usp=sharing

I have attached the BAC w9 form. Will both of these work  for SPARC to write checks to BAC to compensate Patrick for his work for SPARC?

Warmly,

Patrick 

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Patrick Ohslund, MA

Director- Bayareacreative

dire...@bayareacreative.org

(949) 285-9086 (cell)

[director bayareacreative.org]

Hello Jay and Jaz,

May this find you both well! I am reaching out to see if either of you have access to the Berkeley Slam financial records via the bank account for Mach and April of 2019. We are currently applying for a COVID emergency grant from the city of Berkeley to recoup lost earnings due to closures in March and April and the foundation would like to see what we made last year so they know how much to recoup us for this year.

Would it be possible to send me financial statements from the Wells Fago account from March and April of 2019? Or if you just want to send me the log in information I can find them myself. 

Thanks for the help and I am wishing you all well.

Warmly,

Patrick

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