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HIGH GEAR/MAY 1978

GEAR GRANTED TAX-EXEMPTION

After eleven months of collecting data, filing papers, and answering written questions, the Gay Educational and Awareness Resources Foundation GEAR of Cleveland has achieved its long standing goal of federal taxexemption. The official announcement was made by Treasurer Bill Smith at the April 25th meeting of the GEAR Foundation Board of Trustees. The determination was confirmed by a letter dated April 10, 1978 from the Internal Revenue Service (IRS), Department of the Treasury in Washington

Internal Revenue Service Washington, D.C. 20224 Date:

APR 1 0 1978

declaring the Foundation taxexempt under section 501(c)(3) of the Internal Revenue Code.

The GEAR Foundation, incorporated in Ohio on May 8, 1975 as a public, non-profit, educational organization, is one of less than ten gay groups in the country which have been granted federal income taxexemption. Most of those rulings have come during the last nine months due to a recent IRS reversal of its previous longstanding policy of denying taxexempt status to organizations which take the position that homosexuality is an acceptable alternative lifestyle, rather than "a sickness, disturbance or Department of the Treasury

The ruling covers all segments of the GEAR Foundation, including HIGH GEAR, the Gay Community Center of Cleveland (GCCC) and the Foundation itself. According to Smith, "The benefits are twofold. First, all income received by the Foundation is exempt from federal taxes. And, second, any contributions, bequests or gifts made to GEAR are tax-deductible by the donor."

Gay Educational and Awareness Resources Foundation (GEAR) P.O. Box 6177

Cleveland, OH 44101

Dear Applicant:

Employer Identification Number: 34-1190920

Key District:

Cleveland

Accounting Period Ending: May 31

Form 990 Required: Yes No

Person to Contact:

Contact Telephone Number: David Daume 202-586-3403

Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code.

We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in section 509 (a) (2)

If your sources of support, or your purposes, character, or method of operation change, please let your key district know so that office can consider the effect of the change on your exempt status and foundation status. Also, you should inform your key District Director of all changes in your name or address.

Generally, you are not liable for social security (FICA) taxes unless you file a waiver of exemption certificate as provided in the Federal Insurance Contributions Act. If you have paid FICA taxes without filing the waiver, you should contact your key District Director. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA).

Since you are not a private foundation, you are not subject to the excise taxes under Chapter 42 of the Code. However, you are not automatically exempt from other Federal excise taxes. If you have questions about excise, employment, or other Federal taxes, contact any Internal Revenue Service office.

Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code.

The box checked in the heading of this letter shows whether you must file Form 990. Return of Organization Exempt from Income Tax. If Yes is checked, you are required to file Form 990 only if your gross receipts each year are normally more than $10,000. If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. The law imposes a penalty of $10 a day, up to a maximum of $5,000, when a return is filed late, unless there is reasonable cause for the delay.

You are not required to file Federal income tax returns unless you are subject to the tax on unrelated business income under section 511 of the Code. If you are subject to this tax, you must file an income tax return on Form 990-T. In this letter, we are not determining whether any of your present or proposed activities are unrelated trade or business as defined in section 513 of the Code.

You need an employer identification number even if you have no employees. If an employer identification number was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in all correspondence with the Internal Revenue Service.

We are informing your key District Director of this action. Because this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your permanent records.

If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter.

Sincerely yours.

Jamm 3. Dessay

Jeanne S. Gessay

Chief, Rulings Section

Exempt Organizations Technical Branch

diseased pathology."

In his announcement, Smith also acknowledged and praised the work of Daniel McGuire, past GEAR Foundation Treasurer, who originally filed the tax-exemption application, last June; Dennis Highland, HIGH GEAR staff columnist who greatly assisted in answering the many technical questions posed by the IRS; Stanley Brown, past Foundation President; David Holleb, Foundation Trustee; and various others, without whose efforts the tax-exemption goal could not

have been achieved.

With this accomplishment behind it, the GEAR Foundation can begin exploring government and foundation grants as a possible solution to funding its present and future educational programs. Persons knowledgeable in this area are urged to volunteer their services by contacting the GEAR Foundation, P.O. Box 6177, Cleveland, Ohio 44101. Confidentiality is assured. Contributions are also always welcome and appreciated.

GAY RIGHTS DEFEATS:

WICHITA

Led by the Rev. Adrian, a Baptist Minister, The "Citizens for Community Standards" overwhelmingly succeeded in their efforts to repeal this city's ordinance prohibiting discrimination against 'homosexuals.

The seven-month-old or'dinance, like those in St. Paul, Miami and some 40 other American cities prohibited discrimination in housing, emST. PAUL

Turning out in greater numbers than usual for an off-year election, St. Paul electorate overwhelmingly voted to repeal a section of a four-year old ordinance banning discrimination against homosexuals.

In this conservative community of 279,000 citizens, 54,096 voted for repeal while 31,694 supported retention of the controversial ordinance.

The repeal effort was directed by the Rev. Richard Angwin, pastor of the Fundamentalist Temple Baptist Church, and incumbent city council member, Rosalie Butler.

During the campaign, Rev. Angwin described gays as perverts stating that "being a pervert is like being a thief both are wrong." He called the election "a victory for morality and the rights of parents to decide the moral caliber of persons coming in close contact with their children."

His ally, Rosalie Butler commented that "those who choose a perverted life-style-whether it be as homosexual, robber or drug pusher, can't expect the full rights and consideration that people who live in step with

ployment, and public accomodations based on "sexual or affectional preference."

Buoyed by a similar defeat two weeks before in St. Paul, Minnesota, conservative voters turned out 5 to 1 against the measure.

Α similar election is scheduled next month in Eugene, Oregon and anti-gay forces there are confidently predicting victory.

society get."

Jean O'Leary and Bruce Voeller, co-executives of the National Gay Task Force said that "we are outraged that a majority of misinformed voters once again denied civil rights to a group of American citizens." Many people, gay and straight alike, consider the right to vote on the rights of any group absurd.

Joanne Showalter, newly elected to city council said "the human rights implications of the vote are frightening. Who knows what rights they may seek to take away next,"

St. Paul has predominately Catholic population. The size of the defeat was especially puzzling in view of the Archbishopof St. Paul's moderate support of the rights of gays. The Archbishop, John R. Roach, has publically supported the homosexual's right to human respect, stable friendships, economic stability and social equality. He made his statement in February, 1978.

The Ordinance also had the support of numerous religious and civil leaders, the Mayor of the city and the State's two Senators.

RAPE EVIDENCE ORDINANCE

An ordinance was introduced in Cleveland City on Monday, March 6th, which would authorize the city to pay for the collection of medical evidence for victims of rape and related offenses.

If passed, the ordinance wili comply with a state law that was passed two and one-half years ago. The introduction of the legislation comes as a result of years of work by the Rape Crisis Center on behalf of women who have been hounded by collection agencies for the payment of the bills.

The collection of evidence in a rape case is paritally different from that of other crimes. When a person has been the victim of rape or a related offense the initial evidence, which is on her body, is collected by a doctor. As a result she is sent a bill from the medical facility for tests that are conducted to provide proof of a crime in court. No other victims of crime are sent bills for the collection of evidence for a possible prosecution. But in most cases the police do all of the evidence collection.