Author Topic: Important information for all members to read  (Read 14870 times)

Offline sittinguphigh

  • Sr. Member
  • ****
  • Posts: 679
Re: Important information for all members to read
« Reply #15 on: September 06, 2010, »
Why not go direct to the company's.  Have them use there own Paypal account. We can still run the process but use the companies paypal. 
What you don't know. Can hurt you.

Offline RJ

  • Administrator
  • Sr. Member
  • *****
  • Posts: 8507
Re: Important information for all members to read
« Reply #16 on: September 06, 2010, »
You are not allowed to view links. Register or Login
Why not go direct to the company's.  Have them use there own Paypal account. We can still run the process but use the companies paypal. 

Keep the ideas coming. I did talk with the suppliers a year or so ago about kitting the parts for us as a large purchase done individual to give us some of the break on multiple orders done under a single umbrella. They were not very interested at all. This would be where each of you order your own coop kit as a special part# and get a discount based on we are buying as a whole in larger amount.

RJ
Innovation beats imitation - and it's more satisfying

Offline Kwajtony

  • Sr. Member
  • ****
  • Posts: 646
Re: Important information for all members to read
« Reply #17 on: September 06, 2010, »
Until I can talk with the CPA, I think RJ is onto something with vendors kitting projects for us.  Perhaps a new business model which allows vendors to bid on the sale of say 100 kits (the coop manager would contact the vendor with the # and parts list of a sure sale).  This new law has to hurt them too.   Mayhaps our congress people can do something good for us.
R,
Tony "C"

Offline Greg

  • Sr. Member
  • ****
  • Posts: 426
Re: Important information for all members to read
« Reply #18 on: September 06, 2010, »
You are not allowed to view links. Register or Login
The problem with doing that is that it would limit the value of doing coops at all.  One of the primary benefits of the coop is that the large volume related to a significant savings on the cost of parts.  If you limit the size of the coops down to low then those cost savings disappear and it just becomes a lot of work for the coop manager for nothing.

Well you could spread the payments amongst multiple co-op managers under a single co-op but for purposes of parts purchase (and perhaps the sort and ship) aggregate that under a single manager but then the managers would need to arrange funds consolidation between them prior to parts ordering. Would slow the overall process a bit and of course the managers would need to trust in each other a bit more.

Greg
....  Crazy, Toys in the attic, He is crazy  ....

Offline RJ

  • Administrator
  • Sr. Member
  • *****
  • Posts: 8507
Re: Important information for all members to read
« Reply #19 on: September 06, 2010, »
You are not allowed to view links. Register or Login
Until I can talk with the CPA, I think RJ is onto something with vendors kitting projects for us.  Perhaps a new business model which allows vendors to bid on the sale of say 100 kits (the coop manager would contact the vendor with the # and parts list of a sure sale).  This new law has to hurt them too.   Mayhaps our congress people can do something good for us.

Maybe I did not say it clear but the suppliers do not want to do this.

RJ
« Last Edit: September 06, 2010, by RJ »
Innovation beats imitation - and it's more satisfying

Offline lineman

  • Coop Manager
  • Sr. Member
  • *
  • Posts: 1978
Re: Important information for all members to read
« Reply #20 on: September 06, 2010, »
Just my thought can we have 2 coop managers each collect half and then each pay but ship the parts to one manager . I don't know if this is possible just a thought
Jeff


Offline IndianaChristmas

  • Patron Member
  • Sr. Member
  • ****
  • Posts: 300
Re: Important information for all members to read
« Reply #21 on: September 06, 2010, »
I like the idea of delivering money to several co-op submanagers which can then send the collected money off to the primary manager.  This would create some extra steps and then folks would have to be told which accounts to send the money too but this seems like a way around the issue. 

Offline RJ

  • Administrator
  • Sr. Member
  • *****
  • Posts: 8507
Re: Important information for all members to read
« Reply #22 on: September 06, 2010, »
I do not think this helps it would actually add paypal fees and cause more people to keep paperwork. You still have one paypal account getting it all at the end.
 

RJ
Innovation beats imitation - and it's more satisfying

Offline tbone321

  • Sr. Member
  • ****
  • Posts: 4011
Re: Important information for all members to read
« Reply #23 on: September 06, 2010, »
Not if the sub managers send the payment to the manager by check. 
If at first you don't succeed,
your not cut out for sky diving

Offline Greg

  • Sr. Member
  • ****
  • Posts: 426
Re: Important information for all members to read
« Reply #24 on: September 06, 2010, »
You are not allowed to view links. Register or Login
Not if the sub managers send the payment to the manager by check. 

That is what I was implying in my prior comment...  Cutting out paypal for the consolidation of funds prior to parts order.  Could do a wire transfer to the master co-op manager which would derail the bank's putting holds on checks and the wire transfer fees would be less than the 3% I'd imagine.  But yeah there is always the issue of record keeping to deal with.

Greg
....  Crazy, Toys in the attic, He is crazy  ....

Offline Rainlover

  • Coop Admin
  • Sr. Member
  • *
  • Posts: 1738
  • 97055
Re: Important information for all members to read
« Reply #25 on: September 06, 2010, »
What about Electronic Funds Transfer? I don't know what the costs are or how hard it is to set up. Our company does EFT with a lot of our customers and vendors. I will ask our office manger tomorrow. It may be worth looking into.

John
Life isn't about how to survive the storm, but how to dance in the rain!

Offline WWNF911

  • Patron Member
  • Sr. Member
  • ****
  • Posts: 1079
Re: Important information for all members to read
« Reply #26 on: September 06, 2010, »
You are not allowed to view links. Register or Login
I have looked, albeit briefly, at the IRS website on the Taxation of Hobbies.  Perhaps, PAYPAL would be so kind as to add a category that declares this transaction is "HOBBY" related and we can register as "HOBBY" users.

You are not allowed to view links. Register or Login
The only problem I could see and Paypal would not be opt to go this route is anyone could claim "hobby" to avoid reporting.
And sadly with the crooks out thier looking for ways to bypass tax paying and reporting I could see this being used by shady individuals as a method to get around tax reporting themselves. Which sucks as the good people that we are could be ruined by such individuals. Its for this reason I don't see Paypal granting such an option.   :(

Cash or checks might be the only option again unless anyone else has a different idea? ???

Actually best idea I've heard of yet.

JJJR,

Although you make a good point, I wouldn't want to live in a country where unless we can think of every possibility to thwart the criminals then we can't have quality of life. I would'nt be so willing to be defeated.  Thats why we have law enforcement and thats why we have an IRS and a reporting and an auditing process. Remember all of the safeguards in the world will only keep the honest people at bay when they are tempted. I know it sucks but just being honest,... The dis-honest people when tempted will find a way around any safeguard if they want it bad enough. It's just the way it is.

Leon
« Last Edit: September 06, 2010, by WWNF911 »
Leon

Offline JJJR

  • Jr. Member
  • **
  • Posts: 15
Re: Important information for all members to read
« Reply #27 on: September 07, 2010, »
Leon, I agree this would be the simpilist solution to this issue. My concern is Paypal would be very reluctant to do this for several reasons.
The first being a way to circumvent IRS reporting but even more so this would be another aspect of paypal that the organization would have to monitor and control. Requiring more man hours and resourcces to keep track of the transactions and justifying that each one was a hobby purchase and not a bussiness transaction.

I guess the real question is...how many hobbiest are doing co-op funded purchases and is the hobby sector big enough to warrant paypal the need to open such an option? My only concern is while we are a large group in the DIY Christmas sector in the overall Paypal transaction group I don't see us being a big enough entity that Paypal would want to warrant the extra effort to cater to.
Thats my concern.

I think it wouldn't hurt to contact paypal about the hobbiest option but we should come up with some alternatives to paypal at this point unless something changes I just don't see them offering us this option. I know EFT transfers carry a fee much like paypal but if you go to the Western Union website those fees vary depending on where its going and by how much money is being sent unlike paypal's flat %3 fee in most cases. In this case most members I feel would rather mail the cash or check to the co-op manager as the reason paypal was widely used was it was convient and easy. As long as you had a computer you didn't have to leave home. With EFT transfers you have to stand in line provide two forms of id and its easier just to mail a check at this point.
« Last Edit: September 07, 2010, by JJJR »

Offline rrowan

  • Administrator
  • Sr. Member
  • *****
  • Posts: 5894
  • 08096
Re: Important information for all members to read
« Reply #28 on: September 07, 2010, »
Hi Folks,

Here is another way to look at it. I know the following link is for photographers but they are in the same boat if not worse. They have set up a email template to send to the IRS to ask then to change the rule. There is a time limit of Aug 29th. I would think a modification of their template geared to the hobbyists would help. Since I know we have a word smith or more on DLA hoping they can do the mod to the template for us to send in.

You are not allowed to view links. Register or Login

Thanks

Rick R.
Light Animation Hobby - Having fun and Learning at the same time. (21st member of DLA)
You are not allowed to view links. Register or Login
Warning SOME assembly required

Offline jnealand

  • Patron Member
  • Sr. Member
  • ****
  • Posts: 2485
Re: Important information for all members to read
« Reply #29 on: September 07, 2010, »
There is also a lot of movement in Congress to change this requirement so feel free to inundate your congresspersons  and let them know how burdensome this could be.
Jim Nealand
Kennesaw, GA