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St. Matthew’s Music Guild EIN: 26-1383098

APPLICATION FOR RECOGNITION OF EXEMPTION UNDER SECTION 501 (c) (3)

ST. MATTHEW’S MUSIC GUILD

EIN: 26-1383098

PART IV - NARRATIVE HISTORY

St. Matthew’s Music Guild seeks recognition of exemption under Section 501 (c) (3)

of the Internal Revenue Code.

Background

St. Matthew’s Music Guild has functioned as a support organization of St. Matthew’s Episcopal Church (Rector, Wardens and Vestrymen of St. Matthew’s Parish, Pacific Palisades, EIN 95-1744373) since 1985.

The Music Guild was formed in 1985 as an organization of St. Matthew’s Church and, since that time, has produced concerts at St. Matthew’s Church and in the surrounding community and has offered educational programs to children attending the parish school and neighboring public schools. Since 1985, the Music Guild has offered nearly 200 concerts to the community and has commissioned and premiered more than two dozen musical compositions by locally, nationally and internationally known composers.

The Music Director of St. Matthew’s Church serves as Music Director of the Music Guild. It is the Music Director’s responsibility to plan, organize and carry out the programs which are offered. The Music Director works closely with the President of the Music Guild Board and is assisted by other members of the Board and a core of volunteers who assist on a per-concert basis.

Regular concerts occur eight times per year between October and June. Other activities, including additional concerts or fund-raising activities occur two or three times per year, often in conjunction with the regularly-scheduled concerts.

Most programs take place at St. Matthew’s Church in Pacific Palisades. Occasionally, outreach programs are offered at neighboring schools or churches. The Music Guild has offered programs at numerous area schools, Cathedral Center in Echo Park, California Institute of Technology and several area churches.

Reasons for Applying for 501 (c) (3) status

Currently, all Music Guild income is derived from subscriptions to the concert series and private donations from individuals. The Music Guild seeks to broaden its fund-raising activities by becoming a legal entity itself and securing exemption under 501 (c) (3).

The Music Guild, like all other arts organizations faces rising operating and programming expenses and the Board feels that in order to meet those expenses, fund-raising will need expand to beyond those who have a direct affiliation with St. Matthew’s Church or live in close proximity to the church.

• Advertising costs (printing, postage, radio advertising, print advertising) continue to rise. In order for the Music Guild to remain competitive with other local arts organizations and continue to grow its subscriber base, the Board feels that the advertising budget needs to increase.

• Musician costs have increased roughly 5% - 6% per year over the past several years. The Music Guild is contemplating signing an agreement with the musicians’ union which will provide the musicians greater benefits – at greater cost to the Music Guild.

The Music Guild also seeks tax-exempt non-profit status in order to secure grants and gifts from government agencies, foundations and corporations who are required by their bylaws to support only tax-exempt non-profit corporations or who may choose to restrict their charitable giving to organizations which are exempt under section 501 (c) (3).

• Most government agencies and many foundations and corporations are restricted by their own charters from donating directly to a religious institution. During the 22 years St. Matthew’s Music Guild has functioned as an unofficial organization of St. Matthew’s Church, we have attempted to secure grants and donations from or through individuals who work for public or private corporations and foundations only to learn that these entities are restricted from giving to religious institutions. By securing tax-exempt non-profit status under the Internal Revenue Code, we believe that additional funding will be available to us through these sources.

The Music Guild seeks to qualify as a support organization under section 509 (a) (3) so as not to be classified as a private foundation. Thus the Bylaws provide that the Board of Directors shall be appointed by the Vestry of St. Matthew’s Church, thereby meeting the test of being “operated, supervised, or controlled by” a publicly supported organization.

• While the Music Guild was a division of St. Matthew’s Church, it was possible to obtain support from family foundations. Qualifying the Music Guild as not a private foundation will preserve the opportunity to obtain grants from private foundations.

As a 509 (a) (3) support organization, the Music Guild will more effectively be able to continue its programs by selling tickets and subscriptions to its concerts to individuals who have not been subscribers or patrons in the past and who are not affiliated with St. Matthew’s Church.

• Since its founding in 1985, the Music Guild has been supported largely by parishioners and other supporters of St. Matthew’s Church. Originally, parishioners accounted for more than 90% of subscription and door proceeds (tickets for admission to concerts). Today, as the result of the growth of the Music Guild (from approximately 40 subscribing households in 1985 to approximately 150 subscribing households in 2006) parishioners account for only approximately 40% of subscribers and door proceeds. Approximately 50% of remaining subscribers and those who purchase tickets on an individual basis live within a 10 mile radius. Increased revenue from fund-raising will allow increased advertising in order to attract additional subscribers and patrons from outside the parish and further distances.

Relationship with St. Matthew’s Church

St. Matthew’s Music Guild has a long history of supporting St. Matthew’s Church and that support will continue in the future and be enhanced by qualifying under section 509 (a) (3). Concerts will continue to be offered primarily at St. Matthew’s Church and will therefore benefit the Church by increasing the Church’s exposure to the general public and bringing new audience and potential members to the Church. In addition, the Music Guild will continue to support St. Matthew’s Church with cash and in-kind contributions. Over the past several years, St. Matthew’s Music Guild has secured or provided funding for the following:

• improvements in Church lighting ($20,000)

• improvements in Church facilities

- Patio improvements ($2,500)

- Music Room improvements ($4,000)

- Pipe Organ expansion project ($10,000 pledge)

• Commissioning of musical compositions for Church use ($18,000)

Activities of the Board

The members of the Board of St. Matthew’s Music Guild devote only a small percentage (less than 10%) of their time to fund-raising. Most of the Board members’ time is devoted to planning, organizing and carrying-out the actual production of concerts.

PART V - COMPENSATION AND OTHER FINANCIAL ARRANGEMENTS

3a.

  1. Glenn Ossiander, President. Glenn Ossiander is a retired marketing communications executive with more than 30 years of experience working as a creative director for corporations and advertising agencies. For 15 years he served on the board of the Lehigh Valley Chamber Orchestra as chair of the marketing committee and as board president.He works two to three hours per week. He presides at all meetings of the Board. He, together with the treasurer and/or music director, executes all contracts on behalf of the corporation and performs such other duties as are inherent in the office of president.
  2. Kathleen Milnes worked for fourteen years with the Alliance of Motion Picture and Television Producers and the Entertainment Industry Development Corporation and then went on to found The Entertainment Economy Institute in July 2004. EEI conducts employment, occupation, production and economic research; and partners with High Schools, Community Colleges and Community Based Organizations around issues of curriculum, training, and access to the professional creative sector.
  3. Thomas Neenan, Treasurer. Mr. Neenan is Music Director of St. Matthew’s Parish, a position he has held since 1981. He has administered St. Matthew’s Music Guild since its organization in 1985 working closely with a succession of Music Guild Presidents and other volunteers. He is Lecturer in Music History and Music Theory at California Institute of Technology, a position he has held since 1991.

3b.

Thomas Neenan, current Treasurer and Music Director of the Music Guild is Music Director of St. Matthew’s Parish. As Music Director, he is compensated by the parish to oversee all activities related to music at the parish, including administering the Music Guild and planning, organizing and carrying out its programs. Mr. Neenan’s other responsibilities as Parish Music Director include planning all music for church liturgies, accompanying the services, training the choirs, and coordinating music and other aspects of the liturgy with the Parish clergy. Approximately 40% of Mr. Neenan’s time as Parish Music Director is devoted to his work on behalf of St. Matthew’s Music Guild. Mr. Neenan is a full-time employee of St. Matthew’s Parish and receives from the Parish a compensation package commensurate with his training, experience and tenure at the Parish.

PART VIII – YOUR SPECIFIC ACTIVITIES

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St. Matthew’s Music Guild has a close relationship with The Parish of St. Matthew (Episcopal) Church, Pacific Palisades and is seeking exemption as a 509 (a) (3) support organization for the parish. The Board of Directors of the Music Guild is appointed by the Rector, Wardens and Vestry of St. Matthew’s Parish and members of the parish vestry and staff have and will continue to sit on the Music Guild Board of Directors.

PART VII

St. Matthew’s Music Guild (as a tax-exempt non-profit corporation) is a successor organization to St. Matthew’s Music Guild which has been an unofficial organization operating under the umbrella of St. Matthew’s Parish since 1985. Please refer to our Narrative History for more complete information regarding the relationship between the two organizations.

PART VIII

St. Matthew’s Music Guild has a close connection with St. Matthew’s Parish. Please refer to our Narrative History for more complete information regarding the connection between the two organizations.