07-19-2013
Technology has changed how we communicate in our business and personal lives. Even if you have not met a single friend for a month or two, you can still have thousands of FaceBook friends.
You did not meet a person during the day? Not an issue. You know what is going on with other people by following their Twitter accounts.
Overbooked professionals or businesses on a budget will routinely look for alternatives to meetings in person in the realm of technology, such as Skype or similar teleconferencing ideas. These new technologies seem to makes our social and business lives richer at a cheaper cost Then, why do many nonprofits still spend a significant amount of resources to periodically organize large conferences, conventions, or trade shows?
I believe it is because nonprofit people understand the importance of fun and the value of play in building a community. At least, all the people I have met in the nonprofit industries have understood the importance of the entertaining features of their services to members and supporters. As Johan Huizinga, a Dutch historian, once put it in his book Homo Ludens, the play aspect is a necessary condition to produce a culture.
Whether a nonprofit’s mission is to protect animal rights or to amplify an occupational group’s voice in society, your organization won’t be successful with dry or boring program activities. Constrained professionalism will not generate the “culture or vibe” to attract members or supporters. Our tax code reflects this same reality.
According to the IRS, convention and trade show activities, when carried on by a qualifying organization in connection with a qualified activity, will not be treated as unrelated trade or business.[1]
In order for a convention activity to be considered qualified, the organization must sponsor the activity for the “promotion and stimulation” of interest in products and services that are either common in the industry or related to the exempt activities of the organization.[2]
[1] Treas. Reg. §1.513-3.
[2] Internal Revenue Code §513 (d)(3)(B).
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