What is the status of the Benevolent Fund?
AHRMA is a non-profit 501(c)4 corporation. The Benevolent Fund has always been a part of the general fund under this corporate classification. That is why donations were not tax deductible. The Benevolent Fund had been kept as a part of the general fund, primarily to multiply the earning power with our cash assets in order to grow it faster, and it did benefit from that. Since it was a part of the general fund it could not legally be excluded from our defense. Given its success, we had begun steps earlier this year to convert it to a 501(c)3 fund, but were advised that we should not do that, given the litigation situation and that it could be considered hiding assets if we were forced to bankruptcy. We believe we have retained enough capital to continue to operate it, and we plan to recapitalize it as we move through Chapter 11, and ultimately convert it to a 501(c)3 fund.
