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More on the KDE League
An anonymous reader writes "Timothy Butler published a nice clean-up on the misinformations that were published by dep on Linux and Main. Most of what that has been alleged by Linux and Main turns out to be wrong. Especially, the KDE League has no obligation to disclose financial information. On dot.kde.org, Mathias Kalle Dallheimer, KDE e.V. president, explains that the KDE e.V would authorize the KDE League to disclose its books to the KDE e.V members. However, the KDE e.V is not the only member of the KDE League. Other members would have to approve this."
OfB demonstrated with actual facts (gasp!), on-record quotes from the actual responsible authorities (gasp!) that DEP lied and made up information he published in his articles.
Do you have anything factual to add, or do you just need more aluminum foil in your hat?
The database the OFB article refered to is the IRS Search for Charities web page.
A tax exempt 501(c) organization is a an organization that meets certain requirements (one of which is being a not-for-profit organization) and has applied to and received tax exempt status from the IRS. Not-for-profits can also file for tax exempt status under 501(a) and 501(d). The IRS currently requires organizations that are tax exempt (except for private foundations) to provide public disclosure of certain tax forms such as the corporate 1023 or 1024. See FAQs regarding the Exempt Organization Public Disclosure Requirements for more information.As the KDE league is not a 501(c) organization, it is one of the many other types of not-for-profit organizations recognized by the state of Delaware. See the The Nonprofit FAQ for more information about what type of not-for-profit organizations exist.
The KDE League bylaws clearly state that it is a nonprofit, and the article makes the case that it is not a 501(c)(3) organization. Is it, then, a 501(c)(6) organization (a business league)?
If so, there are, indeed, public disclosure requirements imposed by the IRS. See this page and read the last paragraph. Yes, this page applies to all nonprofits, including business leagues, as this page makes clear. If, in fact, the KDE League is a "business league", Dennis Powell (no matter how much of a jerk you or I might think he is, and believe me, I'm not a fan) was within his legal rights to ask for disclosures. He is not be entitled to the full books, but he is entitled to "the last three annual information returns".
If the KDE league is not a 501(c)(6) either, then I don't see how it can be a legal nonprofit at all, in which case they owe Delaware filing fees that haven't been paid.
You can't just say that you're an ordinary corporation that doesn't expect to make money. With such a status you have to pay filing fees to the state of Delaware, and Delaware is now saying that the league doesn't owe them. So which is it? Either KDE League has to pay Delaware or they have to give Dennis Powell their annual information report. One or the other.
If I'm wrong, then it must be the case that the KDE League has some alternate legal status that I'm not familiar with. If so, what is it?
I'm not saying this to attack KDE. KDE and the KDE League are distinct entities, and I'm not seeing any evidence that the KDE League is serving the interests of KDE's developers or users. Any responses should leave the personality or beliefs of Dennis Powell out, as they are irrelevant.
The KDE League is essentially a "fan club". It was formed, independent of the actual KDE software projects, to promote KDE.
It would be like ME setting up "The Microsoft League" in my basement, and selling Memberships to, say, Compaq, Intuit Software, Ziff-Davis, and a handful of other corporations who like Microsoft. I would have no direct relationship with Microsoft, I'd just be claiming I want to "promote Microsoft".
In this hypothetical case, Compaq, Intuit, etc. may end up having wasted the money they gave me, but it still has no effect on Microsoft...
Dennis E. Powell posted a somewhat sensational story claiming that the KDE League had ceased to exist, asking "what happened to the money?" and so on. (Several people have accused DEP of having a sort of 'vendetta' against KDE in general over political disagreements he had with people on a KDE-mailinglist-hosted-but-not-KDE-related mailing list (i.e. the 'all topics other than KDE' mailing list) - DEP had posted an editorial which began with an implication that maybe the "K" in KDE was there because it resembled a goose-stepping soldier) Andreas Pour of the KDE League posted a response to DEP's story on the KDE League saying, in essence, "It's merely a clerical error, we're getting it sorted out, and we really can't say much more without approval from our members". DEP posted a story in response saying (my interpretation/summary) - "Delaware says you're a 501(c)(3) nonprofit, so you have to tell us WHAT HAPPENED TO THE MONEY!". The most recent exchange here seems to be Pour saying "We're not a 501(c)(3), We called Delaware and they said A)They didn't say we were B)Nobody there should say were were and C)No, we're NOT a 501(c)(3)", and DEP's response that he "stands by his story".
As I posted above, I am puzzled why all the noise is coming out of this - it looks like what we have is a handful of rabid pro- and anti- KDE people all getting caught up in the sensationalism. The small handful of ANTI-KDE folks yelling because they want to discredit KDE, and the PRO-KDE folks yelling because they either feel they're being slandered or are worried that the KDE software projects are somehow being "ripped off" by the KDE League (presumably in the mistaken belief that the KDE League is analogous to the Gnome Foundation rather than merely a 'fan club'). The sheer volume of the screaming seems to be bringing attention from a whole mess or more normal people who are trying to figure out what all the fuss is about...
Disclaimer - the above is entirely my interpretation, except were indicated, and could very well be wrong. That IS how I see this issue, though...
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