1. What is the difference between OWVA and other veteran service organizations (VSO’s)?

A. When groups like the American Legion, VVA, VFW, AMVETS, and others were chartered, they decided to restrict their privilege to use their 501(c)19 designation to be involved in political activity. They allow themselves to work on legislation, but not to be involved in elections and campaigns. OWVA has no restrictions to be involved in political activity.

2. What is the difference between a IRC 501(c)3 charitable organization and a IRC 501(c)19 charitable organization?

A. A (c)3 organization is a public benefit charity that raises public funds through donations, and offers the benefit of tax deductibility and anonymity to it’s donors. Churches and many foundations use the (c)3 designation. A (c)19 organization is a war veterans organization, which is able to offer the same benefits that a (c)3 organization can to its donors. And, when its members are 90% war veterans (served during a period of recognized conflict) it qualifies for the 170(c)3 designation, which allows the war veteran organization to be involved in political activity with “no restrictions, what-so-ever.” In short, OWVA can receive a tax deductible contribution, keep the donor anonymous and use any or all of the contribution for political purposes.

3. Are you saying that OWVA can take a contribution for any amount, from any person or organization, give them a tax-deductible receipt, keep them anonymous and use the entire contribution for a political candidate?

A. Yes, that’s correct.

4. Can someone offer to give a contribution to a political candidate through OWVA, and get a tax deduction for the contribution?

A. No. IRS rules stipulate that “no strings” can be attached to a charitable contribution, if the donor wants a deduction. However, if the donor and OWVA decide to support a candidate together, then the donor could expect their contribution to be used for that support.

5. Why does OWVA want to be involved in politics? Veterans are from all party affiliations, so doesn’t supporting a particular candidate make some vets mad?

A. Yes, vets get mad. But OWVA has worked very hard to remain non-partisan. Our founders are pretty conservative, and probably slant to conservative values. But we recognize that veterans and those who support veteran issues come from all walks of life. OWVA directors have supported about 60% Republican and 40% Democrat candidates in past races. We believe that while we risk making partisan vets angry, taking that risk to get broader support for our issues is worth the trouble.

6. Would you support a vet over another non-vet political candidate?

A. Not always. We endorse veterans and non-veterans for public office. Just because a vet runs, does not mean that he/she is best qualified to help us achieve our legislative agenda. Sometimes it makes sense to endorse the non-vet, rather than support a veteran candidate who cannot win, or does not have the ability to build support for our issues at the legislature. Naturally, we would like to see vets serve in more public offices, but they really need to be able to make a difference for us, not just fill a seat. These can be tough choices, but we are willing to make hard decisions to get the best advocates.

7. Are politics the only reason for OWVA’s existence?

A. Absolutely not. Our ability to be involved in political events sets us apart from the other VSO’s, but our primary service to vets is through advocacy and charitable services. Since 2002 our members and directors have raised designated funds and services for special needs among our veteran and military families. We have sponsored and facilitated “Support the Troops” rallies and other patriotic events. We have aided the Oregon National Guard in raising funding for the very successful Oregon Youth Challenge Program. We have been community leaders and supporters of the other VSO’s. We have the stomach for politics, but our passion is definitely for charitable service.

8. Doesn’t OWVA existence compete for the same charitable dollars that are normally donated to the other VSO’s?

A. No. OWVA founders decided not to ask for money from veterans. It is our plan to give to vets, not take from them. VSO’s develop income through bake sales, BBQ feeds, bingo and raffles, etc. Our funding is sought from corporations, wealthy individuals, Political Action Committees (PAC), Foundations and others who do not normally donate to a VSO.

9. What is ORVETPAC?

A. OWVA has organized its own Political Action Committee (ORVETPAC), and will solicit PAC funds from veterans and other constituents who wish to support veterans and gain the tax credits that an Oregon PAC can offer. PAC contributions are different from charitable contributions, as they are limited to $50.00 per person and are not tax deductible. Oregon allows a tax credit against Oregon Income Taxes to individuals who contribute to a PAC. ORVETPAC is associated with OWVA, but does not share board members. The only Board Member who serves both OWVA and ORVETPAC is Greg Warnock, who serves as Executive Director of both entities. OWVA and ORVETPAC’s finances are completely separate, with different bank accounts and treasurers.

10. How much money does OWVA spend on administration, rather than charitable efforts.

A. In the past, 100% of all funds raised were designated for specific charitable efforts (toy drive, medical expenses, etc). OWVA’s Board has agreed to keep 10% of funds raised for overhead and member services, and allow the balance to be used for OWVA’s other charitable purposes. This will help OWVA grow as an organization, in order to help more people, for a longer period of time. All administrative and legislative/government relation services have been freely volunteered by OWVA’s directors, members and volunteers.

11. How many members does OWVA have?

A. OWVA members and direct supporters total about 320, as of May 2006. OWVA plans to include a membership drive in 2006, and offer a free annual membership to all war veterans. One percent of OWVA’s members are made up of honorary members or non-war vet, veteran members. 99% are war veterans who served during a period of war or conflict, or who received an Expeditionary or other service medal for a specific conflict, as established by the US Congress.

12. I am a veteran but not a war vet. Can I join OWVA?

A. According to IRS 501(c)19/170(c)3 designation requirements, only war veterans can join OWVA as a full member. All other vets are recognized for their service and are highly regarded. OWVA invites all vets to participate in OWVA activities and will allow a total of 1% to join as honorary or associate members. But to maintain our unique tax status, we must keep 99% of our membership for war veterans.

Donations:

(As always, OWVA suggests that contributors consult a qualified tax consultant regarding a contribution to OWVA or any other charity).

1: Are there limitations to the amount and type of contribution make to OWVA?

A: Yes. IRC 170(c)3 limits the deductibility of a cash contribution to a 501(C)19 war veterans organization to 30% of the donors AGI (adjusted gross income).

2: I want to make a capital gains contribution to OWVA. Does the IRS allow this type of contribution?

A:Yes. You may deduct up to 20% of your AGI with a capital gains contribution to OWVA. So, If you want to donate stock or other property, which has increased in value, you can donate it to OWVA and receive a deduction of up to 20% of your AGI, as long as your combined charitable donations do not equal more that 50% of your AGI.

3:I am the President of a 501(c)3 charitable organization. Can we make a contribution directly to OWVA, even though you are allowed to contributions for political purposes?

A:Yes. However, the funds that you donate must not be used for direct political purposes, but must be used by OWVA for it’s other charitable purposes. OWVA will submit a letter to all 501(c)3 contributors assuring them that the funds donated will be placed in a segregated fund account, and used only for administrative overhead (salaries and employee benefits, rents and utilities), member benefits, membership marketing, and other charitable projects and services. No amount of the (c)3 organization’s contributions will be used for political activity or “electioneering.” Furthermore, all charitable organizations which donate to OWVA will be authorized to receive a copy of OWVA’s annual financial audit, depicting the segregated fund expenditures.

4: Can other non-profit organizations, such as a 501(c)4 educational foundation donate to OWVA, without IRC restrictions?

A:Yes. Only the 501(c)3 organizations are required to receive assurances from OWVA that their contributions will not be used for political influence.