November 28, 2006
By Jack Smith
Great Lakes Scrip Center
Great Lakes Scrip Center has been serving scrip users since 1994, and we’ve heard just about every question imaginable about scrip. For most of these questions, we’ve had simple, direct answers. However, when it came to our customers’ tax questions, we didn't have any clear direction to offer our clients besides "speak with your advisor".
Unfortunately, the tax rules applicable to non-profits are extremely complex and often confusing, making it difficult for our well-intentioned customers who are trying to run successful scrip programs and comply with the tax code. Recently, several published articles have added to the confusion by suggesting that scrip programs may create serious adverse tax consequences for participating non-profit organizations.
Knowing that our scrip users would want the assurance that they were operating their scrip programs in compliance with applicable tax laws, we turned to one of the nation’s leading tax experts to provide some general answers. These answers are provided in the accompanying opinion letter of attorney Timothy J. Riffle, who serves in the tax department of Barnes & Thornburg LLP, one of the Midwest’s largest law firms. Mr. Riffle’s opinion puts to rest the concerns raised in some recent articles and validates our typical customer’s scrip program and its compliance with the tax code.
Please keep in mind, we still strongly recommend you consult with competent tax advisors if you have questions or concerns.
Click on the link below to review a pdf copy of Mr. Riffle’s opinion. You’ll need Adobe® Reader®, which is freely available, to view this letter.
Best regards,
Jack Smith
President
Great Lakes Scrip Center, LLC
Scrip Tax Issues Opinion Letter
