Removing 501(c)(3) Status Need Not Be Complex

The following suggestions would make it possible to remove
our references to the status and dispel any question as to our requirement to hold the status or to hamper the function of the Association that functioned properly for over 30 years, even with the documents as they currently read.  We should be able to revoke the 501(c)(3) status at any time.

My research on the subject has also shown no evidence that we would have to return money or any other drastic actions as part of the process.

Bylaws:

This is very easy.  We simply remove the two paragraphs from the 2018 Bylaws that make reference to the status in Section I and Section VIII as follows:

I. PURPOSE: The general purpose of these Bylaws and of this corporation is to manage the common areas of Sandia Airpark Estate and to enhance and further the enjoyment of the property owners in the use of the common areas and facilities, as well as their own properties. Enforcement of the rights of the association against any member violating the Restrictive Covenants shall be considered a duty of the corporation.

(PORTION STRUCK OUT)The Association is organized exclusively for charitable, religious, education, and scientific purposes, including for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code.

VIII. ADDITIONAL POWERS OF THE ASSOCIATION: The SAEPOA shall have the right to

1) Make rules and regulations concerning speed limits, parking, trespassing, and pollution;

2) Limit and regulate the size, type, subject matter, location, and elimination of signs within the property;

3) Provide guard service;

4) Limit and control access to Sandia Airpark Estates, including the right to prohibit access at various locations and hours, and to require identification permits for access to the property;

5) Regulate the use of the common areas and any facilities in the common areas, to charge fees for the use of such facilities, and to make regulations concerning the conduct of persons within the properties;

6) Make any rules or regulations as deemed necessary to promote recreation, health, safety, welfare and protection of the residents, property, and environment.

(PORTION STRUCK OUT) No part of the net earnings of the Association shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the Association shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in the furtherance of the purposes set forth in the article. No substantial part of the activities of the Association shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the Association shall not
participate in, or intervene in (including the publishing or distributing of statements) any political campaign on behalf of or in opposition to any candidate for public office. Notwithstanding any other provision of these articles, the Association shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under the section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b) by a corporation, contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code.

 The Association may acquire (by gift, purchase, or other means), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, dedicate for public use or otherwise dispose of real or personal property in connection with the affairs of the Association.

Articles of Incorporation:

These are also simple, but not simply by striking text.  The offending paragraphs are both found in
the “Purpose” section of the document as highlighted below:

PURPOSE AND POWERS OF THE ASSOCIATION

(PORTION STRUCK OUT) The Association is organized exclusively for, charitable, religious, education, and scientific purposes, including, for such purposes, the making of distributions
to organizations that qualify as exempt organizations under section 501(c) (1) of the Internal ‘Revenue Code, or the corresponding section of any future federal tax code.

A. The Association may fix, levy, collect and enforce payment by any lawful means, all charges or assessments pursuant to the terms of the Declaration of Covenants; to pay all expenses in connection therewith and all, office and other expenses incident to the conduct of the business of the Association, including all licenses, taxes or governmental, charges levied or imposed against; the property of the Association.

B. (PORTION STRUCK OUT) No part of the net earnings of the Association shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the Association shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article Third hereof. No substantial part of the activities of the Association shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the Association shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign, on behalf of or in opposition to any candidate for public office. Notwithstanding any other provision
of these articles, the Association shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under the section 501. (c) (3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b by a corporation,
contributions to which are deductible under section 170(c) (2) of the Internal. Revenue Code, or the corresponding section of any future federal tax code.

The Association may acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, dedicate for public use or otherwise dispose of real or personal property in connection with the affairs of the Association.

Here are some options going forward:

1)     Replace the entire Section with the Section from the prior version.

a.     The prior version can also be simplified greatly
to include just the first and last paragraphs.

2) Remove paragraph B of the 1995 Articles and replace the opening paragraph with the following text pulled from the prior version.  Thus, the new document would read as follows (new part in red):

PURPOSE AND POWERS OF THE ASSOCIATION

This Association does not contemplate pecuniary gain or profit to the members thereof, and the specific purposes for which it is formed are to provide for maintenance, preservation and architectural control of the residence Lots and Common Area within that certain tract of real
property described as:

Sandia Area Estates East as shown and described on the plat thereof filed in the Office of the County Clerk of Santa Fe County, New Mexico on the 18th day of February, 1987, in Plat Book 171, pages 010 and 011 under Reception No. 615,127,  (description should be
verified)

The Association may fix, levy, collect and enforce payment by any lawful means, all charges or assessments pursuant to the terms of the Declaration of Covenants; to pay all expenses in connection therewith and all, office and other expenses incident to the conduct of the business of the Association, including all licenses, taxes or governmental, charges levied or imposed against; the property of the Association.

The Association may acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, dedicate for public use or otherwise dispose of real or personal property in connection with the affairs of the Association.